9911796707
TMI Blog2014 (8) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... previous sanction of the CIT u/s 151 of the I.T. Act." 2.1 The facts of the case are that the assessee company filed its Return of Income [ROI] for A.Y. 2005-06 on 31.08.2008 declaring total income of Rs. 8,84,240/-. Assessment order was made u/s 143(3) of the Income-tax Act, 1961 ['the Act' for short] on 20.11.2006 determining the total income of the assessee at Rs. 12,17,886/-. This order was reopened by issuing notice u/s 148 on 16.01.2012 after recording requisite reasons. The assessee disputed the initiation of proceedings u/s 147 r.w.s. 148 of the Act. The A.O has recorded the following reasons for reopening of the assessment dated 20.11.2006 as under: "It is noticed that a sum of 31,11,074/- on account of interest of term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh BOB CC3 account was merely conversion of loan into fresh loan. However interest payment on the BOB working capital loan account (CC account) is allowable on actual payment which was only debited in CC account but not actually paid." However, the A.O was not agreeable and framed the reassessment order. 3. Before the ld. CIT(A), the assessee challenged the legality of notice u/s 147 of the Act stating that interest amount of Rs. 13,11,074/- had been paid by issuing cheques to RICCO Ltd on the term loan taken therefrom and these cheques were debited in the Bank of Baroda CC account and RICCO was paid off. It was further stated that the interest liability of CC account was also debited by the Bank of Baroda and there was no outstanding in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng assessment of the relevant A.Y. Even if the reasons are properly recorded and approval of the ld. CIT is obtained u/s 151 of the Act, limitation provided in the Act cannot be increased. Notice u/s 148 is found to be clearly beyond four years of the completion of the regular assessment order whch was made on 20.11.2006, whereas the notice of reopening u/s 148 was issued on 16.1.2012 i.e. after expiry of four years from the end of the relevant A.Y. It is found for a fact that no new material or information has come to the knowledge of the A.O. The A.O has to interpret the facts of the case by stating that the payment of interest on RICCO loan has been converted into fresh loan from Bank of Baroda by way of enhance CC limit which he has tho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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