2021 (12) TMI 106

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..... 9;s objections to the impugned notice and the Assessment Order and notice of demand dated 09/12/2019. As regards Assessment Order and notice of demand, the same was passed without waiting for the mandatory period of 4 weeks prescribed in the Judgment of this Court in the case of Asian Paints Ltd. Vs. Deputy Commissioner of Income Tax 296 ITR 90 (Bom). The Officer Mr.Arvind Ramchandra Kumbhare who has passed the Assessment Order has filed an Affidavit dated 01/12/2021 stating that he was not aware about the Asian Paints Judgment and hence passed the order before expiry of the mandatory period of 4 weeks. The Affidavit is taken on record and the apology tendered by Mr. Kumbhare is accepted. In view of this, Mr. Walve states that the Assessmen .....

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..... conclusion that there is an escapement of income from assessment. But in the reasons to believe in the present case, we do not find even a single ground which can be considered to be tangible basis for re-opening the assessment. The Assessing Officer states that from the partnership deed, audited accounts and Form No.3CD report, it is seen that that the Assessee has 15 partners, one of whom is Dhansukh Nanda HUF. According to the Assessing Officer, an HUF cannot become a partner of a firm or enter into a contract with other person and hence the Assessee has not complied with the provisions of Section 184 of the Act and the interest of Rs. 61,50,664/- paid to partners cannot be considered for deduction.   5. In our view, this is a clea .....

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..... and in the first assessment after the change in constitution made by the partnership Deed dated 20.10.2014, already the claim of interest paid to partners has been allowed in the order under section 143(3) dated 21.10.2016. Dhansukh Nanda HUF has always been a partner through its karta in all these deeds. It is a matter of record that the earlier years' assessments have attained finality in this regard. Therefore, under section 184(3) it is mandatory for the Assessing Officer to assess our firm as a firm only in all subsequent assessment years. ...... " 7. Respondents have not denied these averments. Since we have concluded that it is nothing but a change of opinion, we do not propose to go into the issue as to whether the stand of Re .....

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