9911796707
TMI Blog2018 (9) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... influenced the Assessing Officer to reopen the assessment, which was completed under section 143(3) of the Act, but for underassessment. Under the above facts and circumstances, we are of the considered opinion that the assessment was validly reopened under section 147 Loss from mutilated currency notes - Vide circular No.RBI/2012-13/562 [DCM(FNVD) No. 5840/16.01.05/ 2012-13] dated 27.06.2013 addressed to the CMD/CEO of all Scheduled Commercial Banks, while deciding to compensate the banks 25% of the loss incurred in respect of counterfeit notes of ₹.100 and above detected by them and reported to RBI and Police Authorities, it was also emphasised in the Extract of Monetary Policy Statement 2012-13 to streamline their system in a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sagadevan, JCIT ORDER PER BENCH: Both the appeals filed by the assessee are directed against separate orders of the ld. Commissioner of Income Tax (Appeals) 5, Chennai, both dated 22.08.2017 relevant to the assessment years 2008- 09 and 2009-10. Besides challenging reopening of assessment under section 147 of the Income Tax Act, 1961 [ Act in short] for the assessment year 2008-09 and confirmation of disallowance representing interest for want of TDS on the application of section 40(a)(ia) of the Act, the assessee also challenged confirmation of disallowance towards loss on account of mutilated notes claimed as expenditure under section 37(1) of the Act for both the assessment years. 2. It was the submissions of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the submissions of the ld. DR that the Assessing Officer believed that income chargeable to tax escaped assessment and accordingly, after recording reasons, the assessment was reopened under section 147 of the Act by service of notice under section 148 of the Act. 4. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, the original assessment under section 143(3) of the Act was completed on 30.12.2010. Against the assessment under section 143(3) of the Act, the assessee preferred further appeal before the ld. CIT(A) and the ld. CIT(A) passed the appellate order dated 19.11.2012. Thereafter, by recording reasons, the Assessing Officer issued notice under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessment years 2008-09 and 2009-10 being mutilated notes loss and the said expenditure was claimed as deduction while computing the income of the assessee. It was the submission that the above loss was incurred during the course of assessee s business and if at all the assessee recognises as income after getting the mutilated notes exchanged or replaced by the RBI or so on. It was the submission that, on appeal, the ld. CIT(A) confirmed the disallowance for both the assessment years under appeal since the facts and issue are identical. It was the submission of the ld. Counsel that the genuineness of the claim was not doubted by the Assessing Officer since the assessee has filed complete bank statement, where debit entries in the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerned, the Assessing Officer has taken a different stand and disallowed entire claim of mutilated note loss of ₹.13,24,030/- in the absence of proper explanation by holding that mutilated notes might have been replaced by the bank. On appeal, the ld. CIT(A) confirmed the disallowance. 5.5 Vide circular No.RBI/2012-13/562 [DCM(FNVD) No. 5840/16.01.05/ 2012-13] dated 27.06.2013 addressed to the CMD/CEO of all Scheduled Commercial Banks, while deciding to compensate the banks 25% of the loss incurred in respect of counterfeit notes of ₹.100 and above detected by them and reported to RBI and Police Authorities, it was also emphasised in the Extract of Monetary Policy Statement 2012-13 to streamline their system in a manner whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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