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TMI Blog2016 (1) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... and in law in not appreciating the undisputed fact that the income escaped within the meaning of "income escaping assessment" as envisaged in the Section 147 of the IT Act and therefore, Assessing Officer had rightly exercised the provisions of the aforesaid Section? (ii) Whether Tribunal was justified on fact and in the circumstances of the case and in law in setting aside the reopening of the assessment, without going into the merits of the issues? (iii) Whether Tribunal was justified on facts and in the circumstances of the case and in law in holding that the Assessing Officer already formed an opinion with regard to disallowance made under section 14A of the IT Act and therefore, reopening on account of disallowance under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of MAT. The same was irregular and in contravention to the provisions of section 2(43). FBT is a tax levied under the income tax only and thus, was required to be added back as per clause(a) of explanation 1 to section 115JB." 3. The Tribunal by the impugned judgement held that the reopening was bad in law making the following observations : "7. We have heard the rival submissions and perused the material on record. It is an undisputed fact that the original assessment was framed u/s.143(3) vide order dated 26.12.2008 and thereafter the notice under section 148 has been issued on 12.03.2010 and thus reopening has been initiated within a period of 4 years from the end of the relevant assessment year. Since the reopening is with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions of the assessee had come to the conclusion that as against nil expenses said to have been incurred by the assessee and therefore no disallowance under section 14A, Assessing Officer worked out the disallowance under section 14A at Rs. 1.43 crores. Thus it can be seen that the Assessing Officer in the course of original proceedings and on the basis of submissions made by the assessee had formed an opinion about the disallowance to be made under section 14A and had accordingly made the disallowance and in such a situation the reopening on account of disallowance under section 14A would be in our view a case of change of opinion. With respect to the addition of FBT to book profit we find that CBDT in circular No.8/05 dated 29.08.2005 h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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