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TMI Blog2023 (12) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the learned CIT(A) erred in quashing the re-assessment proceedings initiated in pursuance of notice u/s 148 of the Act without appreciating the fact that as per provisions of section 292BB, the assessee shall be precluded from taking any objection in any proceedings or inquiry under this Act if the notice has been served upon him in time and in accordance with the provisions of the Income-tax Act, whereas, in the instant case, the assessee has not raised any such objection before the completion of the re-assessment proceedings. 2. On the facts and in the circumstances of the case, the learned CIT(A) erred in not appreciating the fact that it is not a case where the AO has completed the reassessment after obtaining sanction u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee to its partners was allowable while computing the income chargeable under the head of income from business. The Assessing Officer observed that on verification, it has been noticed that while making assessment under Section 144 of the Act, the Assessing Officer allowed deduction of Rs. 1,87,537/- and Rs. 1,83,200/- on account of interest and remuneration, which was incorrectly allowed keeping in view the provisions of Section 184(5) of the Act. Accordingly, the Assessing Officer added the aforesaid amount of Rs. 4,29,737/- under Section 184(5) of the Act on account of disallowance of remuneration and interest paid by the assessee to its partners. 6. In appeal, Ld. CIT(A) allowed the appeal of the assessee on technical gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d correct facts during the course of original assessment proceedings. However, in the instant case, it is an admitted position that there was no new material on the basis of which re-assessment proceedings were initiated. Further, it was submitted that the Department has not been able to demonstrate that there was any failure on the part of the assessee in disclosing fully and truly all material facts. It was further submitted that from perusal of the reasons supplied to the assessee, there is no allegation that income had escaped assessment on account of assessee's failure to make a full and true disclosure of all material facts necessary for completing assessment. 9. In response, Ld. D.R. relied on the observations made by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial" would come to the conclusion that there is escapement of income from assessment. In the case of Jindal Photo Films Ltd. vs. DCIT 234 ITR 170 (Del), the Delhi High Court held that when between the date of orders of assessment sought to be reopened and the date of forming of opinion by the Assessing Officer, nothing new had happened, there was no new material which had come on record or no new information had been received by the Assessing Officer, it was held that this was a case of mere change of opinion which did not provide jurisdiction to the Assessing Officer to initiate proceedings under Section 147 of the Act. In the case of CIT vs. Soh Kisan Cold Storage 209 ITR 700 (Patna H.C.), the High Court held that since the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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