9911796707
TMI Blog2022 (8) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... e particulars of the expenditure incurred under Section 43B also referring to the rates and taxes of land tax, leave encashment, gratuity and others. Specifically, in column No.5, the petitioner makes reference to the amount transferred on demerger of the petitioner company. The sum total of the amounts which is the amount representing income that has, allegedly escaped assessment, as seen from the reasons for re-assessment. The proceedings were concluded by an order of assessment passed under scrutiny on 24.03.2016 after taking note of the submissions of the petitioner. Thus, in light of the discussion as above, we find that there has been full disclosure by the assessee in relation to the issues flagged in the reasons for re-assessment an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner confirms that the aforesaid document was received by it only on 21.11.2019, but that it had been omitted to have been brought to the notice of the Court when W.P.No.32806 of 2019 had come up on 22.11.2019. This led to the passing of an interim order by this Court. 4. Seeing as an order of assessment had come to be passed, the petitioner thereafter filed W.P.No.35505 of 2019 which had come up for admission on 20.12.2019. On the aforesaid date, the following order was passed: Mrs. Hema Murali Krishnan, learned Senior Standing Counsel accepts notice for the respondents and seeks time to obtain instructions and file counter. 2. The sequence of dates in this case are as follows: (i) The petitioner filed W.P.No.32806 of 2019 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been appropriate for the Assessing Authority to have addressed all the issues raised by the petitioner, which has not been done. That is on the one hand. 7. As far as the defence to W.P.No.35505 of 2019 is concerned, the writ affidavit, at para 19, raises a specific argument in regard to the validity or otherwise of the proceedings itself. The counter filed by the respondents restricts itself only to the averments in writ affidavit relating to the procedure followed in passing of the assessment order. There is no defence whatsoever in regard to the validity of the proceedings for re-assessment though raised as a significant challenge. 8. The Respondents appear to have been swayed by the allegations of the petitioner in regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year). Provided that where an assessment under sub-section (3) of section 143 of this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assesment year, unless any income chargeable to tax has escaped assessment for such assessment year by reasons of the failure on the part of the assessee to make a retrun under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of Rs. 1,65,94,29,500. The case was taken up for scrutiny and assessment u/s 143(3) r.w.s 92CA was completed on 24/03/2016 determining the assessed income as Rs. 2,68,41,79,275. Scrutiny of assessment records revealed that for the AY 2012-13, the Company's distribution business was demerged. In this regard, the assessee had claimed as deduction Rs. 12,06,72,989-provision of prior years disallowed earlier u/s 43B now utilized. As per Section 43B, the deduction can be allowed only on actual payment basis. Hence, an amount of Rs. 8,64,31,989 transferred on demerger (ie., relating to demerged business) cannot be allowed as payment under section 43B in the hands of the assessee company and the same needs to be added back to the total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt and the scheme of demerger had been enclosed under cover of communication dated 19.02.2016. 16. Summaries of ledger relating to the expenditure in question had also been enclosed along with a tabulation of the provisions relating to compensated leave and additional gratuity as below: a) Provision for Compensated Leave The provision movement is as below: Particulars Amount in Rs. Opening Balance as on 01.04.2011 23,89,06,000 Add: Provision made during the year 2,01,05,000 Less: Payment made during the year 2,11,16,000 Less: Transfer on Demerger 7,05,31,000 Closing Balance as on 31.03.2012 167,364,00 b. Provision for Additional gratuity The provision movement of additional gratuity is as below: Particulars Am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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