9911796707
TMI Blog2015 (7) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee challenging the common order passed by the Tribunal dismissing assessee's appeal. The assessement years in question are 1993-94, 1994-95 and 1995-96. The Tax Case Appeal Nos: 261 and 261 of 2015 are filed by the Revenue challenging the common order passed by the Tribunal allowing the appeals pertaining to the assessment years 1986-87 and 1989-90. 2. This Court admitted the T.C. (A) No: 421 of 2008 on 21.10.2008 on the following question of law : Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal is right in law in not allowing the appellant's claim relating to the broken period interest and whether the Tribunal is right in law in merely setting aside the assessment for deciding the issue afresh after classifying the investments into permanent and current ?'' T.C. (A) No: 422 of 2008 was admitted on 21.10.2008 on the following substantial questions of law : (i) Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal is right in law in setting aside the assessment in regard to the claim of broken period interest ? and (ii) Whether on the facts and in the ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) No: 416 of 2008, which came to be disposed of on 11.02.2014 by a Division Bench of this Court in the following manner :- 12. Aggrieved by this, the assessee preferred appeal before this Court raising questions of law referred to above. We may point out, even though at the time of admission only three questions of law were considered for admission, yet, there are other questions raised in the memorandum of grounds as substantial questions of law, which we find as relevant for consideration. Consequently, we hold that the questions of law that arise for consideration are as follows:- 1. Whether on the facts and circumstances of the case, the Tribunal is right in law in confirming the reassessment which was completed beyond 4 years from the end of the relevant assessment year? 2. Whether on the facts and circumstances of the case, the Tribunal is right in law in restoring the claim relating to the broken period interest to the assessing authority? 3. Whether on the facts and circumstances of the case, the Tribunal is right in law in directing the assessing authority to classify the securities into permanent and current since the appellant is holding the securit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is escapement of income from assessment. Reasons must have a live link with the formation of the belief. Our view gets support from the changes made to section 147 of the Act, as quoted hereinabove. Under the Direct Tax Laws (Amendment) Act, 1987, Parliament not only deleted the words reason to believe but also inserted the word opinion in section 147 of the Act. However, on receipt of representations from the companies against omission of the words reason to believe , Parliament reintroduced the said expression and deleted the word opinion on the ground that it would vest arbitrary powers in the Assessing Officer.... 19. Keeping this enunciation of law in the background, when we look at the facts of the case, it is evident that one of the issues considered for reopening related to the payments made to PSUs through M/s.Chandrakala Co by way of demand drafts on the additional interest on deposits. The payments were made during the previous year relevant to the assessment years starting from 1990-91 to 1993-94. Although for the assessment year, 1990-91, the assessee's claim was considered favourably in the original assessment, yet in respect of the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 ITR 818 , held that reopening of assessment for an earlier assessment year based on the findings of fact made on the basis of fresh materials in the course of assessment of the next year was well within the scope of Section 147 of the Income Tax Act. Considering the fact that, in the case on hand, no fresh materials were stated to have been considered for the subsequent assessment years, we agree with the assessee's contention that there is total lack of jurisdiction under Section 147 of the Income Tax Act to reopen the assessment. 21. The other issue considered for reopening was on the broken period interest. As already noted in the preceding paragraphs, the original assessment under Section 143(3) was originally made on 31.12.1990, the reopening of assessment was made based on the decision in the case of CIT vs. M/s.Vijaya Bank reported in 187 ITR 541, which was rendered on 19th September, 1990. The original assessment under Section 143(3) was made on 26.03.1993, which means the decision of the Apex Court was very much available before the Assessing Officer at the time the original assessment was made under Section 143(3) of the Income Tax Act, while he considered the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
