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TMI Blog2017 (9) TMI 1988X X X X Extracts X X X X X X X X Extracts X X X X ..... for the AYs 2001-02 to 2004-05, appears to have been of the view that in the absence of any specific direction section 150(1) cannot be invoked, probably by assuming that there is no difference between the expression finding and direction . Since this is an order passed by the Division Bench and that too in the assessee s own case in the earlier years, respectfully follow the same to hold that the provisions of section 150(1) were wrongly invoked by the Assessing Officer. Under these circumstances, the reopening of the assessment is treated as bad in law and the assessment is hereby set aside. Appeal filed by the assessee is allowed. - ITA.No. 554/Hyd/2017 - - - Dated:- 13-9-2017 - SHRI D. MANMOHAN, VICE PRESIDENT For the Assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear relevant to the assessment year 2006-07, referable to interest receivable from the parties. The A.O. accordingly made an addition in the assessment year 2006-07. When the matter was taken up in appeal before the ITAT, vide order dated 08.10.2010, in ITA No.390/Hyd/10, it was held that the amount of interest credited in the books pertain to six years and only 1/6th portion thereof has to be taxed in the assessment year 2006-07. In other words, there was no specific direction by the Tribunal to tax the balance amount in the earlier five years. In other words, the following direction was given to the Assessing Officer. We direct the Assessing Officer to tax only 1/6th of the amount of interest credited in the Profit Loss Account, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,985/- referable to interest accrued in the year under consideration. 5. Ld. CIT(A) having confirmed the action of the Assessing Officer, assessee is in appeal before the Tribunal. 6. At the time of hearing, Ld Counsel for the assessee submitted that this very issue has come up before the ITAT, Hyderabad Bench in the assessee s own case for the A.Ys 2001-02 to 2004-05 (ITA Nos 1070 to 1073/Hyd/2016, dated 17.02.2017) wherein the Division Bench observed that there is no direction to bring the balance of interest to tax in the earlier assessment years. In other words, in the absence of a specific direction to assess the income in the earlier years, A.O. is not competent to reopen earlier year s assessments by invoking the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be assessed year wise. However, in the order passed by the ITAT for the AYs 2001-02 to 2004-05, the Tribunal decided the matter by holding that section 150(1) of the Act can be invoked only when there is a direction to bring the balance of interest to tax in the earlier assessment years whereas there is no such direction in the order passed by the ITAT for the A.Y. 2006-07. It deserves to be noticed that section 150(1) refers to finding or direction . The Division Bench of the ITAT, while disposing of the appeal for the AYs 2001-02 to 2004-05, appears to have been of the view that in the absence of any specific direction section 150(1) cannot be invoked, probably by assuming that there is no difference between the expression finding an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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