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TMI Blog2017 (2) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment. Re-appreciating the very same material on facts ad-infintum lays the Revenue open to the charge of arbitrariness and abuse of a power vested in the A.O. Consistent claim of the assessee before the tax authorities on facts has wrongly been ignored. It is seen that the assessee in each of these three years though has pleaded commercial expediency for advancing loans to his son and nephew where being a senior citizen i.e. 60 years the presence of his relatives was considered necessary on site to ensure quality and time related compliances in order to avoid penalties and being black listed from Government contract work the son and the nephew are stated to have helped by being present on site and over-seeing the quality and the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ole basis of reassessment is illegal, arbitrary and without jurisdiction. 3. That having considered the issue under audit objection and dropped the proceedings u/s, 154, it is not open to assume jurisdiction u/s. 148 of the Income Tax Act, 1961. 4. That even on merits, there is no ground or basis for confirming disallowance of interest amounting to ₹ 3,55,000/- in 2008-09 AY; ₹ 2,54,500/- in 2009-10 AY; and ₹ 1,33,200/- in 2010-11 AY respectively u/s. 36(l)(iii) of the Income Tax Act, 1961 without proper appreciation of facts and legal principles. 5. That orders of the lower authorities are not justified on facts and same are bad in law. 2. It was a common stand of the parties that the facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a civil contractor. The AO vide the said notice u/s 154 also required the assessee to justify the advance to nephew for purchasing plot in HUDA. Considering the detailed reply of the assessee copy placed at pages 13 14 of the Paper Book it was submitted the proceedings u/s 154 were dropped by the AO by his order dated 04.02.2013. Accordingly inviting attention again to the reasons record at Paper Book page 7, it was submitted that it is a case of change of opinion on the very same facts. This conclusion is evident from the recording of the reasons of the AO who states that on a perusal of the very same balance sheet as consideration by the AO at the assessment stage in the order u/s 143(3) and without referring to any new material or tan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments on merit are notwithstanding the arguments advanced that these two relatives extensively helped the assessee in doing its business as being almost 60 years he could not always stand at site and oversee the work. These arguments are before the Commissioner at page 4 of the Paper Book. Thus commercial expediency to have trusted people at work site to ensure work is completed adhering to standard and times were the facts on record. 4. In 2009-10 AY, the capital available to the assessee was ₹ 39,32,703.96/- and the unsecured interest free loans available as per the balance sheet were ₹ 31,98,900/- and the sundry creditors were ₹ 1,39,95,844. The returned income was ₹ 18,19,800/- which was assessed at ₹ 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment orders u/s 143(3). Further the AO in these three years again as per record has issued show cause notice u/s 154 to the assessee requiring an explanation why additions should not be made in the respective years. It is a matter of record and not in dispute that in all these three years after considering the reply of the assessee the 154 proceedings were dropped by the AO. Considering the copy of the reasons recorded, it is seen that the AO does not refer to any new material noticed by him for re-opening the assessment as the AO records that on a perusal of the balance sheets the opinion is formed. The consistent claim of the assessee that the re-opening is based on a mere change of opinion has not been rebutted by the Revenue by refer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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