TMI Blog2023 (9) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... erial available on record distinct from what was available during the original assessment proceedings. Thus, in the absence of any fresh material coming to the notice of the AO giving rise to draw the reasons to believe that the income of the assessee has escaped assessment, in our considered view, is without any basis and therefore the proceedings initiated under section 147 of the Act is liable to be quashed. Thus we are of the opinion that the reopening is not as per the provisions of law but based on the same set of documents which were available during the original assessment proceedings. Accordingly, we quashed the proceedings initiated u/s 147 of the Act. Decided in favour of assessee. - SHRI WASEEM AHMED, ACCOUNTANT MEMBER AN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act and accordingly the ld.AO be directed to not to disallow the said amount while computing the income. 4. That your appellant craves a leave to add, alter or amend any grounds at the time of hearing. 3. The assessee in ground No. 1 has challenged the validity of the reassessment order framed under section 143(3) read with section 147 of the Act in the absence of fresh tangible materials. 4. The facts in brief are that the assessee in the present case is LLP and it was subject to the assessment under section 143(3) of the Act which was selected under CASS for limited scrutiny for the under mentioned items: i. Long-term capital gain ii. Income from heads of income other than business/ profession mismatch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO likewise further found that disallowance under the provisions of section 14A read with rule 8D was to be made for ₹ 28,904.00 but the same has not been made which has resulted the escapement of income. Accordingly, the AO formed reasons to believe that income of the assessee has escaped assessment and initiated the proceedings under section 147 of the Act by issuing notice under section 148 of the Act dated 31st of March 2021. The assessee before the AO objected to the initiation of the proceedings under section 147 of the Act vide letter dated 23 August 2021 which was disposed of by the AO vide order dated 24 August 2021 by dismissing the contention of the assessee. 6. Aggrieved assessee carried the matter before the learned CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, therefore there was no occasion for the AO to touch the issues which were not arising from the limited scrutiny such as set-off of brought forward business losses and the disallowances under the provisions of section 14A read with rule 8D of Income Tax Rules. Thus, the AO during the reassessment proceedings under section 147 of the Act has exceeded the jurisdiction by disturbing those items which were not subject matter of dispute during the original assessment proceedings. 9. The assessee has shown interest income under the head business and profession which was also accepted by the AO during the original assessment proceedings. The AO has accepted the interest income from business and profession which is one of the possibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Ball Aerosol Packaging India (P.) Ltd. v. Assistant Commissioner of Income tax reported in 150 taxmann.com 189 wherein it was held as under: 12. At this stage, as we have noticed that the entire reassessment is not on the basis of any fresh tangible material distinct from what was already available during the assessment proceedings, and as such, the petitioner has made out a case to fall within the proposition as laid in the case of Shanti Enterprise (supra). Since we have considered the same, the observations as contained in Para-11, we may deem it proper to quote herein below; 11. The contention of the Revenue that the impugned action is within the period of four years and, therefore, it is always open for the authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to lengthy proceedings and unnecessary harassment, the High Courts would issue appropriate orders or directions to prevent such consequences. The existence of such alternative remedies as appeals and reference to the High Court was not, however, always a sufficient reason for refusing a party quick relief by a writ or order prohibiting an authority acting without jurisdiction from continuing such action. When the constitution conferred on the High Courts the power to give relief it becomes the duty of the Courts to give such relief in fit cases and the courts would be failing to perform their duty if relief were refused without adequate reasons. 11.2 In view of the above, we are of the opinion that the reopening is not as per the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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