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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 ..... ideration (AY 2009-10). The appeal is entertained on the following Substantial Questions of Law: 1.Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in quashing the reassessment order of the assessing officer u/s.147? 2.Whether on the facts and in the circumstance of the case the Income Tax Appellate Tribunal was right in holding that the notice issued u/s.147 does not satisfy the legal condition laid in the 1st proviso of the Act? 2. We have elaborately heard Mr.M.Swaminathan, learned Senior Standing counsel assisted by Ms.V.Pushpa and Ms.S.Premalatha, learned standing counsels for the appellant / Revenue. 3. The assessee is a liasoning agent and trading in medical equipments. He f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an appeal before the Commissioner of Income Tax-7, Chennai [CIT(A)]. The Commissioner took the appeal for consideration under two heads, firstly with regard to the reopening of the assessment and secondly with regard to the disallowance under Section 40(a)(ia) of the Act. With regard to the reopening of the assessment, the assessee appears to have given a elaborate submission as to why the Assessing Officer has initially completed the assessment under Section 143(3) of the Act. However, CIT(A) opined that as per CBDT's instruction No.9/2006 dated 07.11.2006, remedial action has to be mandatorily taken where the Revenue Audit Party raises an objection which is the case of the respondent and the Assessing Officer has also taken the appro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessment for the relevant Year. 6. It is an argument of Mr.M.Swaminathan, learned Senior Counsel for the Revenue that the case of the assessee would fall under 1st proviso to Section 147 of the Act and the reasons assigned by the Tribunal for setting aside the revised assessment is incorrect and falls foul of Explanation 1 of Section 147 of the Act. It is the further argument that mere production of records and account books before the Assessing Officer would not necessarily amount to disclosure within the meaning of 'Disclosure' as mentioned under 1st proviso to Section 147 of the Act. 7. The correctness of the submission will be decided by examining the relevant facts. At the first instance, the assessee objected to the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 143(2) of the Act, a Chartered Accountant of the assessee appeared and details called for were filed and the matter was discussed with the assessee and the Chartered Accountant and it was completed. Further it could be seen from the original Assessment Order that TDS credit was as per NSDL. If such is the circumstances, it needs to be seen as to whether any fresh tangible material was available with the Assessing Officer to justify the reopening of the assessment. We find none to be available on record as is evident from the Assessment Order dated 30.11.2016, wherein the Assessing Officer himself states that after the assessment was completed under Section 143(3) of the Act, on perusal of the records, it was seen from the P&L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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