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TMI Blog2021 (2) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... as not applied his mind properly before reopening the case of the assessee u/s 147 - no sufficient and impeachable reason for reopening the assessment u/s 147 of the Act. Therefore, in the facts and circumstances of the case the issuance of notice u/s 148 and consequently passing of assessment u/s 147 of the Act is unsustainable. Accordingly, we quash the assessment order passed by the AO u/s 143(3) read with section 147 of the Act. Since the assessment itself is quashed, additions made on such assessment do not survive. Decided in favour of assessee. - ITA No. 548/H/2021 - - - Dated:- 17-2-2021 - SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER And SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Assessee by : Shri P. Murali Mohan Rao Revenue by : Shri Rohit Mujumdar ORDER PER L.P. SAHU, A.M.: This appeal filed by the Assessee is directed against CIT(A), National Faceless Appeal Centre (NFAC), Delhi s order dated 08/10/2021 for AY 2012-13 involving proceedings u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 ; in short the Act. 1.1 We notice at the outset that assessee s instant appeal suffers from 20 days delay in filing before the ITAT. In this connection, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenditure under the provisions of section 43B of IT Act, and, therefore, income to this extent had escaped assessment. He, therefore, reopened the assessment by issuing a notice u/s 148 of IT Act dated 22.03.2019. In response, the assessee company had filed return of income on 22-04-2019 declaring income at ₹ 3,39,39,690/-. Subsequently, Notices u/s 143(2) of IT Act dated 09.11.2019 22.11.2019 respectively were issued to the assessee calling for the details of expenses towards PF payable, ESI payable, TOS payable and also short term provisions shown at ₹ 30,32,19,026/-. However, the assessee could not furnish evidence for the payment of PF, ESI and TDS payable to the tune of ₹ 2,32, 16,784/-. The AO, accordingly disallowed the amounts under the heads PF, ESI and TDS u/s 43B of the Act. 5. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A) and filed elaborate written submissions along with case law, which were extracted by the CIT(A) in his order at pages 4 to 10. After considering the submissions of the assessee, the CIT(A) upheld the disallowances made by the AO by holding that the assessee did not furnish any evidence to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iling of return of income. Further, the ld. DR submitted that there was tangible material available with the AO in the form of investigation report mentioned in the reasons record. He, therefore, submitted that there is no change of opinion as argued by the ld. AR of the assessee. 9. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. In this connection, we refer to the provisions of section 147, which read as under: Income escaping assessment. 147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at too low a rate; or (iii) such income has been made the subject of excessive relief under this Act; or (iv) excessive loss or depreciation allowance or any other allowance under this Act has been computed; (ca) where a return of income has not been furnished by the assessee or a return of income has been furnished by him and on the basis of information or document received from the prescribed income-tax authority, under sub-section (2) of section 133C, it is noticed by the Assessing Officer that the income of the assessee exceeds the maximum amount not chargeable to tax, or as the case may be, the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return; (d) where a person is found to have any asset (including financial interest in any entity) located outside India. Explanation 3.-For the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial facts. in this case in 3CD report filed for the Asst. Year 2012-13, it was mentioned that there was no outstanding PF, ESI, TOS payable to government. account. Similarly, financial account though indicates that short term provisions of ₹ 30,32,19,026/-, breakup of the same was not available in schedules provided to balance sheet .As per the enquiries conducted by DDIT(lnv) Unit 1(3) .Hyderabad and also basing on information received that assessee company is indulging in practice of non-payment of 10S, PF, ESI collected from employees to government account revealed that short term provisions ₹ 30,32,19,026/-, indicated by assessee includes PF ,ESI TDS payable of ₹ 2,32,16,784. Assessee company inspite of providing sufficient opportunities could not produce evidence of remittance of above amounts before filing return of income which means taxable income to the extent of ₹ 2,32,16,784/- has escaped assessment for the AY2012-13 by failure on part of assessee to disclose all material facts with respect to remittances of PF, ESI, TDS which are relevant for the asst year 2012-13. In view of the above, the provisions of clause (a) of Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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