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TMI Blog2015 (3) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... and “since the value of assets pertaining to paper and chemicals divisions could not be ascertained separately out of block of assets, no tax effect has been computed” would only show that the AO did not have any reason to believe about the escapement of income, which is the vital ingredient to uphold the reopening of assessment. One more point to be noticed is that the AO/audit party is making reference of a letter dated 11.12.2008 furnished by the assessee during the course of original assessment proceedings, meaning thereby, a reference is being made to the very same material, which was examined by him in the original assessment proceedings. It was not shown to us that the assessing officer could not have considered the above said lette ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,670/-. On perusal of the records, it was observed that as per note submitted by the assessee on business activity, vide letter dated 11.12.2008, the assessee company was in the business of manufacturing chemicals, paper and processing of sea food and exporting the same. The paper and chemical divisions closed down their activities in the years 1998- and 2000 respectively. However, as seen from the balance sheet and tax audit report the assets pertaining to closed divisions also seem to have been included for the purpose of availing depreciation allowance. Since the value of assets pertaining to paper and chemicals divisions could not be ascertained separately out of block of assets, no tax effect has been computed. Thus, I have a rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/12/2006 with original return of income. Subsequent to that, even I find that the jurisdictional High Court in the case of Purity Techtextile Pvt. Ltd V/s. ACIT reported in 325 ITR 459 has held that the reopening of the assessment based on the audit objection cannot be held to be justified. In addition to this, I also take note of the observation made by the jurisdictional High Court in Para-7 of its order of Writ Petition of 430/2012 referred as above which is extracted herein below: However, as submissions were made on other issues also we are examining them also. It is a settled position in law that where assessment sought to be reopened is before the expiry of four years from the end of the relevant assessment year then in such case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not sufficient to assume jurisdiction to issue the impugned notice. in fact, our court in the matter of Idea Cellular Ltd. v. Deputy Commissioner of Income tax reported in 301 ITR 407 has held that once all the material with regard to particular issue is before the assessing Officer and he chooses not to deal with the same, it cannot be said that he had not applied his mind to all the material before him. Further, as observed by the full Bench of Delhi High Court in the matter of CIT V. Kelvinator of India Ltd. reported in 256 ITR 1, when the entire material is placed before the Assessing Officer at the time of original assessment and he passes an assessment order under section 143(3) of the Act a presumption can be raised that he appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laws relied upon by the ld. DR, in our view, cannot support the case of the AO, in view of the peculiar facts prevailing in the instant case. As pointed out by the ld A.R during the course of his arguments, the reasons recorded by the AO are completely vague and the AO has not given any definite conclusion about the escapement of income. The assessee has obtained a copy of audit objection and the same is placed in the paper book at pages 46 and 47. A comparison of the same with the reasons recorded by the AO would show that the AO has simply copied the audit objections in verbatim and it clearly shows that the assessing officer has not applied his mind independently. Though, in our view, the audit objection can be a source of information, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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