9911796707
TMI Blog2012 (12) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, 1961?" (i) "Whether the Income Tax Appellate Tribunal (ITAT) erred in law in holding that the reopening of the assessment under section 147 of the Income Tax Act, 1961 was without jurisdiction?" (ii) Whether the Income Tax Appellate Tribunal (ITAT) was correct in law in deleting the addition of Rs.29,29,948/- made by the assessing officer by disallowing the commission paid by it to its two directors which was not allowable as per Section 36(1)(ii) of the Income Tax Act, 1961?" 2. The respondent's income tax return for the assessment year 2002-03 was processed under section 143(1) of the Act; the return for the assessment year 2003-04 was scrutinized and the assessment was made u/s 143(3) on 30.11.2005. The ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the reasons recorded for reopening the assessment, had not established any failure on the part of the assessee to disclose full and true particulars because of which income chargeable to tax had escaped assessment. In this view of the matter, the Tribunal held that for the assessment year 2003-04, the reassessment itself was without jurisdiction and in this view of the matter did not consider it necessary to examine the merits of the disallowance under section 36(1)(ii). 3. It is urged on behalf of the revenue that the company allowed the amount in question without declaring dividends on the profits and, therefore, the same was rightly added back under section 36(1)(ii). It is also urged that the Tribunal failed to appreciate that such co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indings of fact are erroneous or were contrary to the material on record. We, therefore, do not think that any substantial question of law arises from the order of the Tribunal for the assessment year 2003-04 on the issue of validity of the reassessment. Since for this year the Tribunal has not adjudicated upon the merits in the view it took of the validity of the reopening of the assessment, the second question of law does not arise for our consideration. 6. So far as the merits of the disallowance under section 36(1)(ii) are concerned for the assessment year 2002-03, the Tribunal's reasoning is to be found in paragraph 2 and 3 of the impugned order. In para 2, the Tribunal has reproduced its earlier orders in ITA No.3473/Del/2007 for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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