9911796707
TMI Blog2023 (1) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... hich details were furnished by the petitioner vide its response - It can also be seen that the AO had disallowed some of the expenses which had been reflected in the break-up under the head details of advertisement and sales promotion expenses while passing the final order of assessment, which reflects that the AO had applied its mind to the appellant s claim while passing the order under section 143(3) - reasons do not disclose as to what material or fact was not disclosed by the assessee. It, therefore, cannot be said that there was any failure on the part of the petitioner to disclose fully and truly facts which were material and necessary for assessment. Thus the notice impugned does not satisfy the jurisdictional requirement of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified and designated areas in the shops of the dealers for exclusive display of the petitioner s products. As per the scheme, the petitioner had to enter into the agreement with dealers as regards sharing of costs incurred for setting up of the designated area for use and display of the petitioner s products. The costs incurred comprised of civil work, furniture and fittings, electrical fittings, signboards, advertisement material etc. It is stated that even though the petitioner incurred expenditure, on setting up of the stores, the stores continue to be belonged to the dealers. It is also stated that the costs incurred by the petitioner as its shares in the development of the Colour Idea Store would be debited to the profit and loss acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Reasons for reopening of the assessment in case of M/s. Asian Paints Ltd. for A.Y. 2013-14 u/s 147 of the Income-tax Act, 1961 : The original return of income has been filed electronically on 8.11.2013 declaring total income at Rs.12,59,97,53,980/-. Subsequently, return of income was revised on 27.03.2014 declaring total income at Rs.12,48,74,49,480/-. The case of the assessee was selected for scrutiny under CASS and assessment under section 143(3) was completed on 20.12.2016 determining income at Rs.1351,78,51,596/- under normal provision of the Act and Rs.1485,91,26,894/- under section 115JB of the Act of the Act. 2. During the assessment proceedings u/s 143(3) of the Act in AY 2015-16, it was seen that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13-14. 6. The petitioner filed its objections to the reopening notice which were rejected by virtue of the order dated 7 th February 2022. Counsel for the petitioner urged that there was no failure to disclose fully and truly any material fact necessary for the assessment which was a condition precedent for reopening the assessment in terms of section 148 of the Act. It is stated that based upon a similar reasoning, the respondents had sought to reopen assessment relevant to assessment year 2011-12 and 2012-13, was challenged in writ proceeding, which came to be allowed by virtue of judgment and order dated 17 th January 2019 and the proceedings were quashed. An SLP preferred against the said judgment and order too, is stated to have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide the link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish the vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment. 10. From the record, it is clear that during the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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