TMI Blog2003 (11) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... d No. 1 reads as follows: "The learned CIT(A) erred in confirming the action of the AO in reopening the assessment under s. 147 of the IT Act in view of the retrospective application of the provisions of s. 14A of the IT Act." 3. As per the assessment order passed under s. 143(3) r/w s. 147 for the years under consideration it was noticed by the AO that some taxable income has escaped assessment. Accordingly, assessments were reopened under s. 147 by issuance of notice under s. 148. The assessee is a co-operative housing society. It was noticed that besides receiving contribution from its members, this society also derived income of rent from a community hall on jetting out to outsiders. The next source of income as mentioned by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dt. 23rd July, 2001. He has also submitted that the reopening of assessment was bad in law because there was no escapement of income and the notices were issued due to change of opinion. Learned Authorized Representative has emphasized that the proviso to s. 14A has specifically mentioned that the AO is not empowered to reassess under s. 147, any assessment beginning on or before 1st April, 2001. So the restriction is imposed so that the already completed assessment could not be reopened. The AO has disregarded the specific provision and wrongly reopened the assessment. Learned Authorized Representative has also mentioned that the AO was not empowered to investigate all the receipts of the assessee and to restart the entire assessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 612 : (2001) 250 ITR 218 (Raj), Ranchi Club Ltd. vs. CIT (1995) 129 CTR (Pat) 385 : (1995) 214 ITR 643 (Pat) and Pradip Kumar Harsaranlal vs. AO (1997) 141 CTR (All) 37 : (1998) 229 ITR 46 (All). 7. We have carefully considered the submissions of both the sides and also thoroughly perused the orders of the authorities below in the light of the material placed before us as well as the case laws cited. In the reopening of assessment it was mentioned that in view of the provisions of s. 14A, while computing total income, no deduction should be allowed in respect of expenditure by the assessee in relation to income which did not form part of total income under IT Act. Subsequently the assessment was made under s. 143(3) r/w s. 147 in the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by learned Authorized Representative is in respect of the scope and power conferred under s. 147 of IT Act. There are no two opinions in respect of the ratio laid down in such precedents but the issue before us is slightly different which is confined to one aspect of applicability of the provisions of s. 14A in respect of pending assessment. Reasons have already been given, on the basis of the same, we are of the view that the reopening was bad in law, hence deserves to be quashed. We direct accordingly and ground raised is hereby allowed. 8. The other grounds were in respect of taxability of hoarding income and transfer fees in the hands of the appellant co-operative society. Since the order has already been quashed after deciding gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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