9911796707
TMI Blog2022 (1) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... rtners, one of whom is Dhansukh Nanda HUF. According to the AO, 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 amount and remuneration paid to partners, aggregating cannot be considered for deduction. This is a clear case of change of opinion because petitioner had, before the original assessment order was passed, filed Form No.3CD in which Dhansukh Nanda HUF is shown as a partner with 10% profit sharing ratio. Form No.3CD also indicates that a sum of ₹ 1,94,826/- has been paid as interest to Dhansukh Nanda (HUF). These materials were on the face of a document available before the Assessing Officer who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bjections 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. v/s. 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 Assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of petitioner to truly and fully disclose material facts. At the same time, the Assessing Officer cannot re-open an assessment merely on the basis of change of opinion. 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 or conclude that there has been failure to disclose any material fact. 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 comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... close any material fact. Hence, we do not propose to go into the issue as to whether the stand of respondent that petitioner has not complied with provisions of Section 184 of the Act is correct. 7. For reasons aforesaid, Petition is allowed in terms of prayer clause (a) which reads as under :- (a) that this Hon ble Court may be pleased to issue a Writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ, Order or direction, calling for the records of the Petitioner s case and after going into the legality and propriety thereof, to quash and set aside the notice u/s 148 dated 27.03.2019 ( Exhibit H ), the subsequent Order dated 19.11.2019 ( Exhibit L ) disposing of Petitioner s objections on the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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