9911796707
TMI Blog2016 (6) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... the liability had reduced from ₹ 1,62,77,457/- in the preceding assessment year to ₹ 1,00,59,941/- in the present year. The assessee had also placed notes of policy for damaged goods stating that the same was received in damaged condition in subsequent years out of those sold during the year is made in the accounts of the year corresponding to the sales on estimation basis. Thus, full accounts, details and justifications for the claim was placed before the Assessing Officer during the original assessment proceedings. This was in response to the written query raised by the Assessing Officer. If, thereafter, in the final order of assessment, the Assessing Officer made no disallowance, it can hardly be stated that he did not for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the re-opening of the assessment and on the disallowance made by the Assessing Officer. When the matter reached the Tribunal, it reversed the decisions of the Revenue Authorities both on the ground of validity of the re-assessment as well as on merits of the disallowance. With respect to re-assessment, the Tribunal held and observed as under: 5.We have heard both the parties and perused the case file. It transpires from the paper book that the Assessing Officer in the course of regular assessment framed hereinabove had issued statutory notice u/s. 142(1) dated 02.074.2007 forming page 19 of the paper book. He raised a specific query 16 seeking details of liability for damaged goods of ₹ 1,00,59,941/-. The assessee filed its reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Circle-4 reported in [2012] 27 taxmann. Com 294(Guj.). 5. The quoted portion of the Tribunal's impugned order would, however, establish that the entire issue was considered by the Assessing Officer in the original scrutiny assessment. The Tribunal records that the Assessing Officer had raised several queries in the notice issued to the assessee, in which, in query No. 16 he had sought details of liability for damaged goods of ₹ 1,00,59,941/-. The assessee had filed its reply alongwith P L account and details of all the expenses. The assessee had also placed material pointing out that the liability had reduced from ₹ 1,62,77,457/- in the preceding assessment year to ₹ 1,00,59,941/- in the present year. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which assessments have to be completed in a time frame. To protect the interest of the revenue, therefore, such special provisions are made under section 147 of the Act. However, it must be appreciated that an assessment previously framed after scrutiny when reopened, results into considerable hardship to the assessee. The assessment gets reopened not only qua those grounds which are recorded in the reasons, but also with respect to entire original assessment, of course at the hands of the revenue. This obviously would lead to considerable hardship and uncertainty. It is precisely for this reason that even while recognizing such powers, in special requirements of the statute, certain safeguards are provided by the statute which are zealous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m. It is not unknown that assessments of larger corporations in the modern day, involve large number of complex claims, voluminous material, numerous exemptions and deductions. If the Assessing Officer is burdened with the responsibility of giving reasons for several claims so made and accepted by him, it would even otherwise cast an unreasonable expectation which within the short frame of time available under law would be too much to expect him to carry. Irrespective of this, in a given case, if the Assessing Officer on his own for reasons best known to him, chooses not to assign reasons for not rejecting the claim of an assessee after thorough scrutiny, it can hardly be stated by the revenue that the Assessing Officer can not be seen to h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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