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TMI Blog2020 (12) TMI 1195X X X X Extracts X X X X X X X X Extracts X X X X ..... s completed on 19.11.2009. Thereafter, the case was reopened u/s 147 of the LT. Act, 1961 on the basis of audit objection raised by Revenue Audit Party, where audit objection has been accepted by the department and re- assessment proceedings u/s 143(3) r.w.s 147 was completed on 25.02.2015 at the assessed income of ₹ 86,05,920/- . Additions were made in the following grounds- a) Disallowed u/s 80IA of ₹ 79,53,563/- b) Disallowed depreciation of ₹ 3,52,694/- 2. Aggrieved assessee filed appeal before the CIT(A) against the additions made by the AO. The CIT(A) allowed the appellants appeal and quashed the reassessment proceedings. 3. Thereafter, the Revenue filed appeal before Hon'ble ITAT, lndore against the decision of the CIT(A). The Revenue filed appeal challenging the decision of CIT(A) before Hon'ble ITAT, Indore with the strong grounds but the same could not be considered in pursuance the monitory limit of Tax. The tax effect in this case of ₹ 27,95,886/- . 4. The Hon'ble ITAT Bench, Indore vide combined order dated 22.08.2019 bearing ITA No. 379/Indl2017 (Mls N.T. Thomas Memorial Educational Development Societ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular and Hon'ble Tribunal was fully aware of the exceptions in the above Circular and there were no exceptions applicable on the above case, therefore the Hon'ble Tribunal has rightly decided the appeal by rejecting the appeal of department since disputed tax demand was below ₹ 50.00 Lacs in the above case and is not hit by any exceptions. 3. The AO has claimed in the MA that the original assessment uls 143(3) was completed on 19/11/2009. Thereafter the case was reopened uls 147 of the LT. Act, 1961 on the basis of the audit objection raised by the Revenue Audit Party, where the audit objection has been accepted by the department and re-assessment proceedings U/s 143(3) r.w.S 147 was completed on 25/02/2015 and therefore the case falls under the ambit of exception enumerated in the CSDT circular No. 03/2018 dt. 11/07/2018 under Clause 10(c) i.e. where the Revenue Audit Objection is the case has been accepted by the department. 4. The Learned A.O has already denied in proceedings before high court that the case was reopened on the basis of audit objected raised by Revenue audit/internal audit party. 4.1. Please refer to the Reply filed by the AO. with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the case on the basis of Audit objections, in absence of any new information I document having shown to be received by the A.O. Sut the AO. has in fact never accepted in past that Reassessment proceedings have been initiated on the basis of Audit Objections, which is evident in all the notices, orders and proceedings. 6. The claim of the Department in MA, that the case was re-opened on the basis of the audit objections is also contrary to all the proceedings before and during the assessment U/s 143(3) r.w.s 147 as there is no reference of any audit objections in any of its, Notices, or Orders particularly detailed in 6.1 to 6.3 below:- 6.1 Show cause notice issued on 22nd January 2013 before issue of Notice U/s 148 (Copy enclosed) A.O had in past also issued a Show cause notice in January 2013, i.e. before issue of notice U/s 148, which is as below. OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX 1(2), INDORE F.No.ACIT-1(2)/Ind/Audit/2012-13/ January 22, 2013 To Sharp Infrastructure Pvt Ltd, 302 Morya Arace, Old Palasia, Indore Sub: Showcause notice under Income Tax Act, 1961 A.Y. 2007-08 reg Please refer to the assessment c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r initiation of reassessment Proceedings U/s 147 as extracted below Here the A.O. has mentioned all the reasons as revealed from assessment records and here is there is no reference of audit Objection. 6.3 Assessment Order U/s 143(3) r.w.s 147 (Copy enclosed) As can be seen that there is no reference of Audit objections anywhere in the order passed under Section 143(3) r.w.s 147 also. Therefore it is clear that there was no reference of any audit objections in the any proceedings from show cause in January 2013 to Assessment order U/s 143(3) r.w.s 147 passed on 20/02/2015. 7.The Original Assessment U/s 143(3) was completed in November 2009, and therefore the revenue audit should have been completed for above proceedings at the most by March 2011, therefore also it is not clear that, if the audit objections were accepted by department. 7.1. Why Notice U/s 148 was issued in March 2014 i.e. after 3 years from completion of audit. 7.2. Why a show cause notice was issued in the January 2013, instead of Notice U/s 148, or Notice of revision U/s 263. Issue of Show cause Notice itself is evidence of that either there were no audit objections, or same were ..... X X X X Extracts X X X X X X X X Extracts X X X X
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