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TMI Blog2013 (3) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... ain how the facts for A.Ys. 2006-07 and 2007-08 were different from those of A.Y. 2008-09 and subsequent years was a circumstance which led the AO to believe that the rental income has been wrongly assessed under the head of income from business rather than as income from house property. Before the AO it was contended that the assessee had followed the judgment of this Court for A.Ys. 2006-07 and 2007-08. However, as the AO noted, the returns for those two years were filed on 29 November 2006 and 27 October 2007 whereas the decision of this Court had been pronounced much later on 12 January 2012. Thus AO was justified in purporting to reopen the assessments for A.Ys. 2006-07 and 2007-08. Sufficient opportunity was given to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had accepted from A.Y. 2008-09 that the rental income is taxable under the head of income from house property, the Assessing Officer was of the view that the same view needs to be taken for A.Ys. 2006-07 and 2007-08 since the facts of the case for the subsequent years and the two years in question are the same. The Assessing Officer has also stated that the rental income is treated as income from house property. The total income which has escaped taxation for A.Y. 2006-07 would be Rs. 63.69 lakhs and for A.Y. 2007-08 would be Rs. 61.77 lakhs. 4. Counsel appearing on behalf of the Petitioner submits that: (i) The purported reopening of the assessments for A.Ys. 2006-07 and 2007-08 is based on only a subjective satisfaction of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 2007-08 were different from those of A.Y. 2008-09; (ii) Even the objections which have been filed by the assessee to the notice under Section 148 on 14 August 2012 do not contain any statement of material facts that would indicate that the circumstances pertaining to A.Ys. 2006-07 and 2007-08 are fundamentally different from those of subsequent assessment years; (iii) Though in paragraph 4(d) of the Petition, the assessee has for the first time sought to set out a chart of expenses incurred for A.Ys. 2005-06 to 2009-10, this was never placed on the record of the A.O. earlier. Moreover, exfacie the expenses which have been shown for A.Y. 2006-07 in the chart do not tally with what was disclosed before the Assessing Officer as recorded in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years the Assessing Officer had passed an order to the effect that the income derived by the assessee was business income. Consequently, for A.Y. 2005-06, the income from the property in question was treated as business income. 9. From A.Y. 2008-09, the assessee started classifying the rental income under the head of income from house property. When the assessment proceedings for A.Y. 2009-10 were underway, a notice was issued to the assessee under Section 142(1) calling upon the assessee to clarify as to why the rental income has been shown as business income till 2007-08 and as income from house property thereafter. The assessee vaguely dealt the query in a letter dated 23 August 2011 stating that the circumstances prevailing were diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court for A.Ys. 2006-07 and 2007-08. However, as the Assessing Officer noted, the returns for those two years were filed on 29 November 2006 and 27 October 2007 whereas the decision of this Court had been pronounced much later on 12 January 2012. 10. In our view, the Assessing Officer was justified in purporting to reopen the assessments for A.Ys. 2006-07 and 2007-08. Sufficient opportunity was given to the assessee during the course of the assessment for A.Y. 2009-10 to explain to the satisfaction of the Assessing Officer how the facts for A.Ys. 2006-07 and 2007-08 were different. As we have noted above, the response of the assessee was entirely vague and bereft of any material particulars. Subsequently, as the Assessing Officer has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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