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TMI Blog2020 (9) TMI 1017X X X X Extracts X X X X X X X X Extracts X X X X ..... ds, it was seen from the P L A/c that there is differences between charges received as per TDS Certificate and charges offered in the P L A/c. When the assessment was completed under Section 143(3) of the Act, this aspect, was noted by the Assessing Officer, namely the differences between the charges received as per TDS Certificate and charges offered in P L A/c and that perhaps was the reason for the Assessing Officer to record the TDS credit is as per NSDL. Tribunal was fully justified in holding that reopening the assessment beyond four years was a clear change of opinion and did not satisfy the requirements to be fulfilled in terms of 1st proviso to Section 147 of the Act. Thus, the Revenue has not made out any ground to interfere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny. Notice was issued under Section 143(2) of the Act and the Assessing Officer records that the assessee represented by a Chartered Accountant appeared and furnished details. After discussing with the assessee and his representative, the assessment was completed under Section 143(3) of the Act by order dated 29.06.2011. After a period of four years and within the period of six years, the assessment was sought to be reopened by issuance of notice dated 25.01.2016. The reason for reopening appears to be that the Assessing Officer, on perusal of the records found from the Profit and Loss Account (P L A/c) that the assessee has offered a sum of ₹ 1,99,28,844/- of service charges for which the assessee has enclosed a statement of details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee was rejected. Thus we find that the CIT(A) did not examine the assessee's objection as to whether the reopening was justified and the parameters required to be fulfilled under First Proviso to Section 147 of the Act. What appears to have run in the minds of the CIT(A), is the instructions given by the Central Board of Direct Taxes (CBDT). This Court heard the learned Senior Counsel for the Revenue on this aspect from which we were able to decipher the normal procedure that is followed when an audit objection is raised, it is communicated to the Income Tax Department and to the assessee. At the first instance, it is for the Income Tax Department to satisfy the Audit Department by proper explanation or otherwise the issue has to be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment. After obtaining the reasons for reopening, the assessee has specifically stated that when the original assessment was completed under Section 143(3) of the Act, all the details were called for by the Assessing Officer which were furnished in full form and details of party wise service charges credited in the P L A/c was also furnished. Further the assessee stated that in the original Assessment Order dated 29.06.2011, while giving credit for TDS, the Assessing Officer has clearly mentioned that the TDS credited is as per NSDL. Further more, the assessee specifically stated that the Assessing Officer has verified the credit of TDS in accordance with the NSDL as well as corresponding service charges admitted in the return of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment was completed under Section 143(3) of the Act, this aspect, was noted by the Assessing Officer, namely the differences between the charges received as per TDS Certificate and charges offered in P L A/c and that perhaps was the reason for the Assessing Officer to record the TDS credit is as per NSDL. 8. Therefore, in our considered view, the Tribunal was fully justified in holding that reopening the assessment beyond four years was a clear change of opinion and did not satisfy the requirements to be fulfilled in terms of 1st proviso to Section 147 of the Act. Thus, the Revenue has not made out any ground to interfere with the order passed by the Tribunal. 9. Accordingly, the Tax Case Appeal is dismissed and the Substantial Qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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