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TMI Blog2013 (1) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... ivision incurred between 01.10.2001 to 31.3.2002 was reduced from the loss of the petitioner company to show a reduced loss for that year, the profit shown for the year ended 31.3.2003 relating to the assessment year 2003-04 should correspondingly be reduced by the aforesaid loss. This position was duly informed to the assessing officer in the return and the documents and accounts accompanying it. The factual position thus show that the complete particulars relating to the memorandum of understanding and its impact on the profit and loss of the petitioner company was disclosed by the petitioner in its return of income. There was no failure on the part of the petitioner to disclose the primary facts causing no escapement of income - notice u/s 148 is therefore, without jurisdiction - in favour of assessee. - W.P.(C) 8484/2010 - - - Dated:- 11-12-2012 - MR. S. RAVINDRA BHAT And MR. R.V. EASWAR, JJ. Petitioner : Mr. Ajay Vohra, Ms. Kavita Jha and Mr. Somnath Shukla, Advs. Respondent : Mr. Abhishek Maratha, sr. standing counsel with Ms. Anshul Sharma, Adv. R.V. EASWAR, J: (OPEN COURT) The petitioner is a company incorporated under the Companies Act, 1956 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO will not necessarily amount to disclosure with the meaning of the foregoing proviso. In view of above facts, I have reason to believe that income chargeable to tax amounting to Rs.2,52,14,220/- has escaped assessment in the case and the same is to be brought to tax under section 147/148 of the I.T.Act Sanction for issue of notice u/s 148 as prescribed u/s 151 to reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to the notice subsequently during the course of assessment proceedings may kindly be accorded. (Signature of Officer) Sd/- Name B. Srinivas Kumar Designation DCIT Circle-15(1) Dated: 11.03.2010 The petitioner s objections to the effect that the reassessment was without jurisdiction were rejected by the assessing officer by order dated 14.12.2010. The petitioner has filed the present writ petition challenging the notice under Section 148 on 26.3.2010 and the order passed by the assessing officer rejecting the petitioner s objections. Both are sought to be quashed. 3. The short question before us is whether the notice issued under Section 148 on 26.3.2010, beyond the period of four years from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 2002-03 from which the loss figure of Rs.2,52,14,220/- was removed. As a result of the exclusion of the said loss, the loss declared in the original return was reduced to Rs.38,49,710/-. In other words, the loss suffered in the paper board division which was transferred to R.T. Paper Board Ltd. w.e.f. 1.4.2001 was not claimed in the revised return of income filed by the petitioner for the assessment year 2002-03. This is clear from the note appended to the revised return (pages 120-135, Annexure G of the writ petition). Page 125 is a reconciliation of the loss after transferring the income and expenses relating to the paper board division for the period from 1.10.2001 to 31.3.2002. It sets out the following position. S. No. Particulars Rs. Rs. 1. Loss as per Balance sheet filed with Original return -29064000 2. Less : Loss transferred to R T Paper Board Limited 25214220 25214220 Revised loss for filing I. Tax Return -3849780 Note : Detail of prior period income expenditure transferred to R T PAPER BOARD LIMITED, a subsidiary Company, is attached. This annexure is as per TA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Administrative and other expenses. 261.28 229.87 Interest 25.67 143.79 Depreciation 99.84 149.95 Total expenditure (B) 499.89 523.61 Excess of expenditure over income transferred to R T Paper Board Ltd. -252.14 -523.48 In the computation of income for the year ended on 31.03.2003 i.e. for the assessment year 2003-04, the loss of Rs.2,52,14,220/- was reduced from the book with the narration previous year income shown in revised return for the assessment year 2002-03 . 6. The result of filing revised return of income for the assessment year 2002-03 in March 2004 and filing the return of income for the assessment year 2003-04 on 2.12.2003 was this : the loss of Rs.2,52,14,220/- was not claimed in the revised return of income for the assessment year 2002-03 and the reversal of the aforesaid loss in the books of account for the year ended 31.03.2003, relevant to the assessment year 2003-04 could not be subjected to tax for that assessment year. This was consistent wit the position that neither the income nor the loss relating to the paper board division could be considered to belong to the petitioner on and after 01.10.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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