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TMI Blog2018 (6) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. Disallowance of deduction u/s. 80IB - whether AO has exercised his powers wrongly - Held that:- the proceedings u/s. 147 were initiated, as assessee withdrew the 80IB claim in later years and filed revised return for this year and paid taxes. To regularise the same, AO has initiated the proceedings and assessee has accepted the same - AO accordingly disallowed the deduction claimed u/s. 80IB and accepted the revised return filed in response to the notice u/s. 148. Thus, the escaped income for which proceedings were initiated were brought to tax. AO has power to make enquiry on other issues also and the issue of commission was already being enquired in AY. 2008-09 - thus we do not find any reason to hold that AO has exercised his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... although that amount is not income that escaped assessment. 3. The Learned A.O is not justified in making the two additions amounting to ₹ 14,16,938/- in an assessment u/s. 147 r.w.s. 143(3) on the basis of roving enquiries. The additions on the basis of roving enquiries do not come under the income that escaped assessment under explanation-3 to sec. 147 . 3. Briefly stated facts are that assessee has filed return of income for ₹ 12,84,99,710/- claiming deduction u/s. 80IB of the Income Tax Act [Act] of ₹ 3,75,90,169/-. During the course of assessment proceedings for the AY. 2008-09, assessee has withdrawn the claim of exemption u/s. 80IB of the Act. Further, assessee had revised its return for the AY. 2009-10 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid taxes. Accordingly, the revised e-return of income is filed on 4February, 2011 vide Inward No. 6000001126. A copy of revised return acknowledgement and revised computation of total income are hereby enclosed for immediate reference. The revised return of income submitted on 4February, 2011, may be treated as return of income submitted in response to notice u/s. 148 of the Income Tax Act, 1961. We would like to know the reasons for issue of Notice u/s. 148 of the I.T.Act, 1961 relating to the Assessment Year 2007-08. Kindly acknowledge the receipt and do the needful . 5. In the consequential scrutiny proceedings, AO enquired about certain commission payments to an extent of ₹ 14,16,938/- and disallowed them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 80IB claim in later years and filed revised return for this year and paid taxes. To regularise the same, AO has initiated the proceedings and assessee has accepted the same, as can be seen from the letter extracted in para 4 above. AO accordingly disallowed the deduction claimed u/s. 80IB and accepted the revised return filed in response to the notice u/s. 148. Thus, the escaped income for which proceedings were initiated were brought to tax. AO has power to make enquiry on other issues also and the issue of commission was already being enquired in AY. 2008-09. Thus, we do not find any reason to hold that AO has exercised his powers wrongly. The same was discussed by Ld.CIT(A) elaborately in para 4.3 as under: 4.3 However, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not have been issued. Where during the reassessment proceedings, he arrives at a conclusion that some other income has escaped assessment which comes to his notice during the course of proceedings for reassessment u/s. 148 . It was further held that the provision nowhere postulate or contemplates that the Assessing Officer cannot make any addition on any other ground unless some addition is made on the ground on which reassessment had been initiated. In view of the ratio laid down into by these judgement and facts of the case the assessee s contentions that the reopening is bad in law cannot be accepted . 9. Ld. Counsel relied on the decision of Hon'ble Punjab and Haryana High Court in the case of Vipan Khanna Vs. CIT (supra) for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, he can enquire about other issues which comes to his notice and that issue is the commission payments which were already enquired and disallowed in other years. 9.1. Considering the facts and circumstances of the case and law on the issue supported by the provisions of Section 147, we are of the opinion that AO has correctly exercised his jurisdiction in enquiring about the commission payments and disallowing the same. It is a fact that such commission paid to the same / similar parties was already disallowed in later years and the same was also got confirmed by the ITAT. Thus, there is no merit in the contentions that commission amount is eligible for deduction. Accordingly, we find that there is no merit in the contentions of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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