9911796707
TMI Blog2018 (4) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... ra & Mahindra, but it was not done and without doing so, the AO has made the addition of the same in the hands of the assessee, having invoked the provisions of section 41(1) of the Act. We are therefore of the view that in the absence of complete information, the conclusion drawn by the AO is not proper. Therefore, it requires further enquiry and investigation from M/s. Mahindra & Mahindra with regard to any settlement undertaken between the parties under which M/s. Mahindra & Mahindra has written off huge amount of ₹ 3,08,03,419.13. Accordingly, we set aside the order of the CIT(Appeals) in this regard and restore the matter to the AO with a direction to make necessary enquiry from M/s. Mahindra & Mahindra and from the assessee also with regard to any settlement under which 3,08,03,419.13 has been written off by M/s. Mahindra & Mahindra. - ITA No.2098/Bang/2017 - - - Dated:- 6-4-2018 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For The Appellant : Shri A. Shankar, Advocate For The Respondent : Shri B.R. Ramesh, Jt. CIT(DR)(ITAT), Bengaluru. ORDER Per Sunil Kumar Yadav, Judicial Member This appeal is pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year on the facts and circumstances of the case. 11. The appellant denies the liability to pay interest under section 234B and 234C of the Act in view of the fact that there is no liability to additional tax as determined by the learned assessing officer. Without prejudice the rate, period and on what quantum the interest has been levied are not discernable from the order and hence deserves to be cancelled on the facts and circumstances of the case. 12. The appellant craves leave to add, alter, modify, delete or substitute any or all of the grounds and to file a paper book at the time of hearing the appeal. 13. In view of the above and other grounds that may be taken at the time of the hearing the appeal, the appellant prays that the appeal be allowed in the interest of justice and equity. 2. During the course of hearing, the ld. Counsel for the assessee has also moved an application dated 28.10.2017 for admission of the following additional grounds:- 1. Whether the order passed under section 143(3) r.w.s 147 of the Act, without disposing the objections to the reopening by passing a speaking order, was bad in law as the conditions stipulated in GKN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only grounds raised and grounds No.1 3 are general in nature and needs no independent adjudication. 7. Ground Nos.4 5 relate to the validity of assessment framed u/s. 147 of the Act. The ld. Counsel for the assessee has contended that since the mandatory condition as envisaged in the Act to assume jurisdiction under the Act did not exist or having not been complied with, reassessment framed is not sustainable in the eyes of law. 8. We have carefully examined the orders of the authorities below in this regard and we find that assessment was initially framed u/s. 143(1) of the Act. Later on the AO noticed that assessee has shown a credit balance of ₹ 1,86,14,426 in the name of M/s. Mahindra Mahindra in his books of account as reflected in the balance sheet and its annexure. It has surfaced during the course of scrutiny proceedings for the AY 2012-13 in the books of M/s. Mahindra Mahindra that debtor has written off the corresponding debit balance in its books of account as on 31.3.2011 itself. Therefore, on the basis of these facts, the AO has properly formed a belief that income chargeable to tax has escaped assessment. In the light of these facts, we do not agre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its letter dated 24.03.2015 that they have written off the entire outstanding balance of ₹ 3,08,03,419.13 in the books of account during the year ended 31.3.2011. But there is no movement of corresponding entries in the books of account of the assessee. The ld. DR further invited our attention that there was dispute between the assessee and M/s. Mahindra Mahindra with regard to credit balance payable to M/s. Mahindra Mahindra. The ld. DR also invited our attention to the reply to the legal notice dated 31.12.2008 by the assessee which is available at pages 41 to 46 of the compilation and one more reply by the assessee to the notice dated 24.02.2009 in which the assessee has disputed the liability raised by M/s. Mahindra Mahindra. All of a sudden when the entire amount was written off, some negotiation or understanding must have been developed between the assessee and M/s. Mahindra Mahindra on the basis of which the entire amount was written off. In this situation, the assessee cannot claim that he was not aware of the writing off of the entire liability in the books of account of M/s. Mahindra Mahindra. Therefore, the CIT(Appeals) has rightly adjudicated the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
