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Issues Involved:
1. Deduction towards Bid Loss. 2. Taxability of Foreman's Dividend. 3. Validity of Reassessment Proceedings u/s 147. Summary: Issue 1: Deduction towards Bid Loss The revenue's appeal (ITA No.1315/Bang/2012) contested the CIT(A)'s decision allowing the deduction towards Bid Loss, arguing it pertained to a period beyond the relevant accounting year. The CIT(A) had allowed the claim based on the Tribunal's decision in the assessee's case for AY 2005-06. The Tribunal dismissed the revenue's appeal, stating that the decision of the coordinate Bench on an identical issue must be followed, and the pendency of an appeal before the High Court does not justify not following the Tribunal's earlier order. Issue 2: Taxability of Foreman's Dividend In the assessee's appeal (ITA No.1282/Bang/2012), the issue was the addition of Foreman's Dividend amounting to Rs. 52,09,740/-. The assessee argued it was not taxable on grounds of mutuality. However, the Tribunal upheld the CIT(A)'s decision, referencing a coordinate Bench's earlier ruling against the assessee on an identical issue for AY 2003-04, and thus dismissed the appeal. Issue 3: Validity of Reassessment Proceedings u/s 147 The assessee's appeal (ITA No.1281/Bang/2012) challenged the validity of reassessment proceedings initiated u/s 147 for AY 2003-04. The Tribunal found that the AO had not alleged that the escapement of income was due to the assessee's failure to disclose fully and truly all material facts, a requirement under the proviso to section 147. Citing the Tribunal's decision in a similar case (M/s. DHFL Vysya Housing Finance Ltd.), the reassessment proceedings were deemed invalid, and the reassessment order was annulled. Conclusion: - ITA No.1315/Bang/2012 (Revenue's appeal) is dismissed. - ITA No.1282/Bang/2012 (Assessee's appeal) is dismissed. - ITA No.1281/Bang/2012 (Assessee's appeal) is allowed. - ITA No.1314/Bang/2012 (Revenue's appeal) is dismissed. Pronounced in the open court on this 14th day of August, 2013.
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