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TMI Blog2019 (7) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... section 148 of the Act was extended to 16 years by virtue of introduction of section 149(1)(c) of the Act by Finance Act, 2012, w.e.f. 1st July 2012. Thus, with introduction of the aforesaid provision the Assessing Officer became empowered to re open the assessment for the impugned assessment years. Keeping in view the aforesaid facts, the assessee s explanation with regard to its inability to deposit the tax for the impugned assessment years earlier needs to be examined. Moreover, the assessee has filed additional ground challenging the validity of the penalty proceedings. Considering the fact that the issue raised in the additional ground is a purely legal issue going to the root of the matter, we are inclined to admit the additional g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk account with erstwhile Republic National Bank of New York (Suisse) S.A., Geneva, now known as Hong Kong Shanghai Bank Corporation (HSBC, Geneva), re opened the assessments for the impugned assessment years under section 147 of the Income Tax Act, 1961 (for short the Act ). In response to the notices issued under section 148 of the Act, the assessee filed its return of income for the aforesaid assessment years declaring income as under: A.Y. 2000 01 ₹ 1,27,310 A.Y. 2001 02 ₹ 1,61,088 A.Y. 2002 03 ₹ 32,536 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee imposed penalty u/s 271(1)(c) of the Act in all the assessment years as detailed below: A.Y. 2000 01 ₹ 38,039 A.Y. 2001 02 ₹ 51,415 A.Y. 2002 03 ₹ 9,403 4. Though, the assessee challenged penalty imposed under section 271(1)(c) of the Act by filing appeals before learned Commissioner (Appeals), however, learned Commissioner (Appeals) sustained the penalty imposed by the Assessing Officer. 5. The learned Authorised Representative submitted, there is no dispute that the deposits made in the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning assessment as per existing statutory provisions had expired, the assessee had no scope to offer the interest income to tax. He submitted, subsequently clause (c) was introduced to section 149(1) of the Act by Finance Act, 2012, w.e.f. 1st July 2012, empowering the Assessing Officer to issue notice under section 148 of the Act within a period of 16 years to tax the income arising outside India. Thus, he submitted, when the Department issued notice under section 148 of the Act in pursuance to the aforesaid provision, the assessee got an opportunity to offer the interest income to tax. The learned Authorised Representative submitted, in these circumstances, assessee cannot be accused of concealing income or furnishing of inaccurate partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals), however, he submitted that the legal issue raised by the assessee for the first time may be restored to the learned Commissioner (Appeals) for adjudication. 9. We have considered rival submissions and perused the material on record. From the facts on record it is clear that the assessee has a account in HSBC, Geneva. It is also evident, the assessee was regularly earning interest on the deposits standing in the said foreign bank account. However, the interest income earned on such bank account was not offered to tax by the assessee. It is also evident, in pursuance to the notices issue under section 148 of the Act, the assessee filed revised return of income for the aforesaid assessment years and offered interest inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant to observe, the time limit to re assess the income arising in foreign country by issuing notice under section 148 of the Act was extended to 16 years by virtue of introduction of section 149(1)(c) of the Act by Finance Act, 2012, w.e.f. 1st July 2012. Thus, with introduction of the aforesaid provision the Assessing Officer became empowered to re open the assessment for the impugned assessment years. Keeping in view the aforesaid facts, the assessee s explanation with regard to its inability to deposit the tax for the impugned assessment years earlier needs to be examined. Moreover, the assessee has filed additional ground challenging the validity of the penalty proceedings. Considering the fact that the issue raised in the additional g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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