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TMI Blog2021 (6) TMI 914X X X X Extracts X X X X X X X X Extracts X X X X ..... of the transactions. All those aspects are to be considered by the AO while passing the final order of reassessment. Perusal of the above findings of the 3rd respondent would be sufficient to hold that the requirements of Section 147 of the Act has been complied with and the initiation of reopening proceedings is well within the provisions of the Act and therefore, the respondents are at liberty to proceed with re-assessment by following the procedures and by affording opportunity to the writ petitioner/assessee, as contemplated. The respondents are directed to complete the said exercise of completion of the re-assessment proceedings within a period of four months from the date of receipt of a copy of this order. - W.P.Nos.42729 & 427 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d two Assessment Years and for the purpose of reopening of the assessment by invoking Section 147 of the Act. Admittedly, the petitioner raised an objection and requested for reasons for reopening of assessment. On 04.05.2016, the respondents requested the petitioner to submit Return of Income. The petitioner responded the same and thereafter, the reasons for reopening of assessment was furnished in proceedings dated 18.07.2016. The petitioner submitted its objection with details and by raising grounds and thus, the objections were disposed of by the 3rd respondent in proceedings dated 21.11.2016. 3.The learned counsel appearing for the petitioner solicited the attention of this Court with reference to the original assessment orders p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot been complied with and thus, the Writ Petitions are to be allowed. 4.The petitioner relied upon the details of reasons furnished by the respondents for reopening of the assessment. The income of the petitioner firm to the extent of ₹ 3,58,74,171/- being the share of profit derived by Shri V.G.Surendranath for the Assessment Year 2009-10 has escaped assessment within the meaning of Section 147. The claim of deduction under Section 80IB(10) is found untenable and excessive to the extent of ₹ 3,58,74,174/- and hence, the deduction requires restriction to the amount of eligible quantum. The assessment of the petitioner firm has been reopened under Section 147 of the Act. With reference to the said reasonings furnished for reop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s bad in law and the authorities have not considered the objections in a meaningful manner. 5.This Court is of the considered opinion that the procedures contemplated were followed by the respondents on initiation of reopening proceedings by invoking Section 147 of the Act. The notice under Section 148 of the Act was issued on 31.03.2016. The petitioner responded to the notice. At the request of the petitioner, reasons were furnished. The reasons furnished by the 3rd respondent are elaborate and the petitioner also submitted further objections regarding the reasons furnished and then, objections were also disposed of by the 3rd respondent. 6.This Court has to consider the findings given in the order of disposal passed by the 3rd respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion is totally baseless. The son of the Managing Director of the company which owns the land is the substantial stake holder in the assessee firm. The transactions between the assessee firm and company are so arranged that the entire sale proceeds of UDS of land and building is received by the firm and a portion is thereafter parted to the company, apart from the amount diverted through the partner Shri M.G.Surendranath as share of profit from the firm. When the transactions are undertaken between these related enterprises, it is madndatory that the nature and characteristics of the transactions requires to be furnished in Form No.3CD. Colum No.18 emphasizes on the phrase 'Particulars of payments made to persons specified u/s.40A(2)(b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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