9911796707
TMI Blog2015 (6) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... ce there is no failure on the part of the assessee to disclose all the material facts then, statute provides that no action can be taken for reopening the case beyond the period of four years from the end of the relevant assessment years, where order has been completed u/s 143(3). Reopening notice quashed - Decided in favour of assesse. - ITA No. 7115/Mum/2011 - - - Dated:- 23-3-2015 - SHRI D. KARUNAKAR RAO AND SHRI AMIT SHUKLA, JJ. For The Assessee : Shri C. Naresh For The Revenue : Shri Kishan Vyas ORDER PER AMIT SHUKLA, JM: The aforesaid appeal has been filed by the Assessee against order dated 28.07.2011, passed by Ld.CIT-5 Mumbai for the quantum of assessment passed u/s 143(3) r.w.s. 147 for the A.Y. 2001-02. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee follows mercantile system of account and accordingly in its accounts, at the end of the year, takes credit for interest accrued but not due on its investment in securities. However, in the return of income such interest is not offered to tax and only the interest which has become due and receivable during the year is offered to tax. From the A.Ys. 2003-04 onwards, such interest Accrued but not due at the end of the year was taxed by the Assessing Officer. Such additions have been confirmed and upheld by the CIT(A) in assessee bank s first appeal subject to the direction that the credit for similar amount of interest accrued but not due at the beginning of the year which was offered to tax should be allowed. 2. The appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) dismissed the assessee s contention that reopening is bad in law in view of proviso to section 147 on the ground that AP had sufficient reasons to reopen the case. His finding in this regard are given in para 5 of the impugned order. 4. Before us, learned counsel submitted that in the computation of income filed along with the return of income, the assessee has duly disclosed the details of interest of securities chargeable to tax and also the details of interest accrued but not due at the end of the year. All these details were available in the audited statement of account. In the course of the original assessment proceedings, the assessing officer has duly scrutinized all the book of account and the audit report and has passed d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on reopening of case u/s 147. It is an undisputed fact that assessee s case was selected for scrutiny and assessment was completed u/s 143(3) and the reopening of such an assessment has been done after the expiry of four years from the end of the relevant assessment year. In such a case, time limit for reopening has to be examined in light of the proviso to section 147, which clearly lays down on embargo to reopen the case where the assessment has been completed u/s 143(3) the proviso clearly provides that no action shall be taken u/s 147 for reopening the assessment after the expiry of four years from the end of the relevant assessment years. Such a limitation is subject to two conditions, firstly, any income chargeable to tax has esca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 59,78,82,999 6,41,31,993 ADD: On shares ADD: On Units of SBI Magnium ADD: On success fee 82,500 Sub total 2,98,70,23,184 31,77,42,795 12,80,78,882 Less: Interest accrued upto 31.03.2001 but not due (St No. 9F) 73,83,38,715 8,80,58,710 2,24,86,84,469 22,96,84,085 (Grand Total : ₹ 2,47,83,68,554/-) After this disclosure, the assessee s case have been compl ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
