9911796707
TMI Blog2011 (11) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... he material which is available on record, we are satisfied that there are sufficient grounds for the Assessing Officer to re-open the assessment for the above said assessment years Regarding time limitation - it is clear that the Assessing Officer having recorded reasonable opinion for reopening the assessment for the years 1992-1993 to 1995-1996 has issued notice on 11.12.1996 and wherefore, the said notice is issued is within four years in respect of all the assessment years 1992-1993 to 1995-1996 - The original records would show that there was no opportunity for cross-examining the said statements given by the said persons and the same was denied and therefore, the authorities below were not at all justified in relying open the said s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c market and the bulk of the production is sold in India and there are marginal exports. The assessee is having high profit margin business and he filed returns for the assessment years 1992-93, 1993-94, 1994-95 and 1995-96. However, the Assessing Officer having been satisfied with the genuineness of expenses incurred towards sales commission paid to M/s Transhed Electronics Private Limited for the assessment years 1992-93 to 1995-96, issued notice and thereafter the representatives of the assessee were heard. The search was conducted on the allegation that M/s Transhed Electronics Private Limited is a paper entity created to book false sale commission expenses of M/s Amitronics, the assessee company and its sister concern, M/s Anutronics P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces rendered and hence allowable as such and deleted the disallowance of commission for all the four years. However, held that charging of interest under Sections 234B and 234C are cons consequential in nature and accordingly allowed the appeals in part by an order dated 7.4.2006. Being aggrieved, these appeals are filed by the Revenue. 3. These appeals are admitted on 11.3.2010 to consider the following substantial questions of law. ( a ) Whether the reopening of the assessment is based on a mere change of opinion and not for sufficient ground ? ( b ) Whether the reopening of the assessment was barred by limitation ? ( c ) Whether the commission paid to M/s Transhed Electronic Limited would be a business expense or not ? 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initiation of the re-assessment pertaining to the period 1992-93, 1993-94 is barred by time end further the opinion of the Assessing Officer for reopening assessment is based upon suspicion and not on any sufficient ground and therefore bad in law and all further proceedings stand vitiated. It is further submitted that though an opportunity was sought for cross-examination of the Chartered Accountant and Mr. Umesh Mhetre, the Director, no opportunity was given for cross-examination of the said witnesses to test the veracity of the statement given by them before the Assessing Officer and an opportunity may be granted after remanding the matter to the Assessing Officer and the contentions of the parties may be kept open. 7. We have given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imitation of four years is the date on which the notice was issued after recording satisfaction of the Assessing Officer and power of re-assessment was exercised and not the date of further enquiry. Accordingly, the second substantial question of law (b) is answered in favour of the revenue against the assessee by holding that reopening of the assessment is within time and was not barred by limitation. 9. So far as the substantial question of law (c) is concerned, it is clear that the orders passed by the Assessing Officer, appellate authority and the Tribunal are based upon the statement of the Chartered Accountant, who audited the account of M/s. Transhed Electronics Pvt. Limited and also submission of Umesh Mhatre, who has given stat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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