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TMI Blog2012 (3) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) r.w.s. 147 after reopening the assessment u/s 147 on 14- 09-2007 determining the total income at Rs.22,78,880. After expiry of four years, the assessing officer reopened the assessment for the second time on the basis of the judgment of the Apex Court in the case of Raveendranathan Nair vs Commissioner of Income-tax 295 ITR 228 (SC). Referring to the reasons recorded by the assessing officer, the ld.representative submitted that there is no negligence on the part of the assessee in disclosing the material for completing the assessment. According to the ld.representative, when the assessee has disclosed all the particulars for completing the assessment, the assessment cannot be reopened on the ground that the income has escaped assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on 27-08-2002. An assessment u/s 143(3) r.w.s. 147 of the Act after reopening the assessment was also completed on 14-09-2007 determining the total income at Rs.22,78,880. Subsequently, the Apex Court in the case of Raveendranathan Nair vs Commissioner of Income-tax 295 ITR 228 (SC) found that the processing charges are independent income like rent, commission, brokerage, etc. and therefore, 90% of the processing charges have to be reduced from the gross total income to arrive at the business profit. In order to comply with the view taken by the Supreme Court in the case of Raveendranathan Nair vs Commissioner of Income-tax (supra), the assessing officer reopened the assessment for the second time u/s 147 of the Act by issuing notice u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri K. Raveendranathan Nair (295 ITR 228) Gross processing charges received has to be included in the total turnover for the purpose of deduction U/s 80HHC and 90% of the same is to be deducted from the business profits for the computation of deduction U/s 80HHC. Excess deduction claimed on account of the above is Rs.1131027/-. Also the assessee has claimed a sum of Rs.67156/- as loss on outside processing without furnishing any supporting documentary evidence. The same is therefore inadmissible. A bare reading of the reasons recorded by the assessing officer clearly shows that on account of the judgment of the Apex Court in K Raveendranathan Nair (supra) gross processing charges have been included in the total turnover for the purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Anu Cashews (supra) a similar contention was raised by the ld.DR. This Tribunal found that the details regarding processing charges are available on record. The assessing officer could very well ascertain the gross processing charges from the material available on record. In the case of Anu Cashews (supra) also the assessment proceedings were reopened on the basis of judgment of the Apex Court in K Raveendranathan Nair (supra). After considering its earlier decision in the case of Dy.CIT vs M/s Kerala Nut Food Co in ITA No.97 to 99/Coch/2010 dated 24-08-2011 this Tribunal found that there was no negligence on the part of the assessee in disclosing the details for completing the assessment. When the material for computing the business p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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