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TMI Blog2015 (10) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... w of the above, we are of the opinion that reopening of assessment by the Assessing Officer for the purpose of scrutiny of dividend income, capital loss or household expenses is not permissible. Therefore, the notice issued under Section 148 is quashed and consequentially, the assessment order framed in pursuance to the notice under Section 148 is also quashed. - Decided in favour of assessee. - ITA Nos.272/Del/2010 & 2233/Del/2004, ITA No.326/Del/2010 - - - Dated:- 22-8-2014 - SHRI G.D. AGRAWAL AND SHRI ABY T. VARKEY, JJ. For the Assessee by : Shri B.B. Bhagat, Advocate. For the Revenue by : Ms. Y. Kakkar, Sr.DR. ORDER PER G.D. AGRAWAL, VP : ITA No.2233/Del/2004 Assessee s appeal :- This appeal by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 32,44,070.50 Gross Total Income 1,34,950.74 Less : Deduction under 80-L 2,993.24 Net Assessable Income 1,31,957.50 Rounded off to ₹ 1,31,960.00 Gross Tax due 15,392.00 Less : Tax rebate u/s 88 20% of LIP of ₹ 27106.10 5,421.00 Net tax due 9,971.00 Less : TDS paid 1,57,355.00 Refund due 1,47,384.00 2. It has been noticed that besides the above, the assessee has dividend income of ₹ 17,62,200/- which has been claimed exempt u/s 10(33) of the Act. A further perusal of the opening account reveals that the amounts invested in the shares of various companies from which dividend income of ₹ 17,62,200/- has been shown is of the order of ₹ 2 crore i.e. to be exact ₹ 1,97,95,340/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns an income of ₹ 92,26,329/- is spending a sum of ₹ 6,950/- as his personal expenses and he is also not repaying back the unsecured loans. The household expenses are so low that it requires verification/scrutiny. Sd/- (R.A. Mittal) Income Tax Officer Ward-1, Gurgaon. 5. From a perusal of the above reasons, it is evident that paragraph 1 is only the reproduction of the computation of assessable income furnished by the assessee. In paragraph 2 3, the Assessing Officer has pointed out that since the dividend income is exempt under Section 10(33), the proper working of dividend income is required and possibility of there being net loss under the head dividend is not ruled out. Such loss cannot be adjusted against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r on which the assessee may rely, in support of such claim: [Provided that no notice under this clause shall be served on the assessee on or after the 1st day of June, 2003;] (ii) notwithstanding anything contained in clause (i), if he considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, serve on the assessee a notice requiring him, on a date to be specified therein, either to attend his office or to produce, or cause to be produced, any evidence on which the assessee may rely in support of the return: [Provided that no notice under clause (ii) shall be served on the assessee after the expiry of six months from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalty sustained while the Revenue is in appeal against the relief allowed by the learned CIT(A). 9. Since, while deciding the assessee s appeal in ITA No.2233/Del/2004, we have quashed the assessment order dated 31 st March, 2003 passed under Section 143(3)/148, any penalty levied on the basis of the addition made in that assessment order does not survive because the addition itself does not survive. Therefore, the assessee s appeal against the penalty sustained by the CIT(A) is allowed and Revenue s appeal against the penalty deleted by the CIT(A) is dismissed. 10. In the result, assessee s appeals vide ITA No.2233/Del/2004 272/Del/2010 are allowed and Revenue s appeal vide ITA No.326/Del/2010 is dismissed. Decision prono ..... X X X X Extracts X X X X X X X X Extracts X X X X
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