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TMI Blog2011 (3) TMI 1634X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of tax audit report filed by the assessee in Form No.3CD and on the basis of information available in the Profit and Loss account. There was no reference to any new material by the AO which had come into his possession after the completion of original assessment under Section 143(3) of the Act. It is also a matter of record that before initiating re-assessment proceedings by issuing notice under Section 148 of the Act, the AO had initiated proceedings under Section 154 of the Act for the same reasons and proceedings initiated under Section 154 were dropped by him after the issuance of notice under Section 148 and were thus pending on the date of initiation of the re-assessment proceedings. In these circumstances, the Tribunal whil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 148 of the Act on 21.07.2005. Re-assessment proceedings were completed on 29.09.2006 at loss of ₹ 39,13,425/-. In re-assessment proceedings additions of ₹ 31,87,271/- and ₹ 32,63,000/- were made on account of disallowance of prior period expenses and capital expenditure respectively claimed as revenue expenses. The reopening was made on the basis of "tangible material" in the form of tax audit report filed by the assessee and on the basis of information available in the Profit and Loss account. 2. Before the CIT (A), the assessee had challenged the validity of re-assessment proceedings. The CIT (A) vide para No.2.3.3 of his order dated 25.09.2008 held that the reasons were recorded for reopening the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the re-assessment proceedings were initiated by the AO on the basis of tax audit report filed by the assessee in Form No.3CD and on the basis of information available in the Profit and Loss account. There was no reference to any new material by the AO which had come into his possession after the completion of original assessment under Section 143(3) of the Act. It is also a matter of record that before initiating re-assessment proceedings by issuing notice under Section 148 of the Act, the AO had initiated proceedings under Section 154 of the Act for the same reasons and proceedings initiated under Section 154 were dropped by him after the issuance of notice under Section 148 and were thus pending on the date of initiation of the re- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. Though he has used the phrase 'reason to believe' in his order, admittedly, between the date of the orders of assessment sought to be reopened and the date of forming of opinion by the Income-tax Officer nothing new has happened. There is no change of law. No new material has come on record. No information has been received. It is merely a fresh application of mind by the same Assessing Officer to the same set of facts. While passing the original orders of assessment the order dated February 28, 1994, passed by the Commissioner of Income-tax (Appeals) was before the Assessing Officer. That order stands till today. What the Assessing Officer has said about the order of the Commissioner of Income-tax (Appeals) while recording re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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