9911796707
TMI Blog2023 (1) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... use notice. It can be further observed from matter on record that in original assessment the question of claim of loss of Rs. 2,95,61,000 /- on sale of vehicles are repossessed by the assessee company from defaulter parties was considered as is manifested by letter dated 23.10.2008 of the assessee addressed to the Ld. AO and the same being on paper book at page no. 7. There is no doubt in the mind of the Bench that at one end the Reasons cited in notice u/s 148 of the Act was erroneous with regard to calling for reassessment in regard to a factor which was already examined in the original assessment. On the other hand, in the assessment order an addition was made in regard to a head for which actually there was no show cause issued. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d after a period of 4 years on the end of relevant assessment year and this ground was disallowed by the ld. CIT(A). 3.1 In regard to challenge of disallowing claim towards loss on repossessed assets, the appeal was allowed while the ld. First Appellate Authority confirmed the addition made by the ld. AO on account of interest on inter- corporate deposits. 3.2 Further, assessee also challenged the computation of the income by Ld. AO with regard to the matter involving the addition or Rs. 20.61 crores in original assessment as restored by ITAT to the file of AO. The ld. First Appellate Authority observed that the time limit for giving effect of the order of the ITAT expired on 31.03.2017, therefore AO was directed to re-compute the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred in deleting the addition on account of sale of repossessed assets amounting to Rs. 2,95,61,000/- and addition of Rs. 20.61 in original order. 2. The appellant craves leave to add, amend or forego any ground(S) of appeal at any time before or during the hearing of this appeal. 5. Arguments were heard and record was perused. Primarily the argument of the ld. Representative of the assessee was on the jurisdictional error in reopening the assessment after period of 4 years. It was submitted that all the material facts were already disclosed in the assessment and there was no failure on the part of the assessee. The Ld. AO without recording any reasons invoked powers of reopening u/s 147 of the Act. In this context, he reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s submitted that even otherwise Ld.AO had examined the question of loss on sale of repossessed assets in the original assessment and a review through reassessment cannot be sustained. 5.4 It was specifically pointed out that the Tax Authorities below have relied judgments which were overruled or dissented and were distinguishable on facts. 6. On the other hand, the Ld. DR defended the order of ld. CIT(A) in regard to sustaining addition on account of interest on advances but in regard to appeal of revenue it was submitted that the Ld. CIT(A) had fallen in error in deleting the addition made by AO of loss on repossessed assets submitting that the expenditure is not related to business and Ld. AO had rightly considered it to be a capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess deduction of Rs. 1,12,38,236/-. By doing so, the assessee has not disclosed the assessee has not disclosed its income truly to the extent of Rs. 4,07,99,236/-. ... Based on the above facts, I have reason to believe that the income of the assessee chargeable to tax Rs. 4,07,99,236/- has escaped assessment. If approved, a notice u/s 148 of IT. Act may be issued to assessee. Dated : Sd/- Dy. Commissioner of Income Tax, Circle 11(1), New Delhi 9. Now what can be observed is that as with regard to addition of Rs. 2,25,41,809/- there was no notice to the assessee that the Ld. AO had considered it to be one which escaped assessment and the assessee was only made to explain the expenditure shown of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee points out the same in its objections, then the order on objection must deal with it and prima facie, establish that the facts stated by it in its reasons as recorded are correct. In the absence of the order of objections dealing with the assertion of the Assessee that the correct facts are not as recorded in the reason, it would be safe to draw an adverse inference against the Revenue. 11.1 Relying aforesaid ratio, there is no doubt in the mind of the Bench that at one end the Reasons cited in notice u/s 148 of the Act was erroneous with regard to calling for reassessment in regard to a factor which was already examined in the original assessment. On the other hand, in the assessment order an addition was made in regard ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
