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TMI Blog2016 (6) TMI 1459X X X X Extracts X X X X X X X X Extracts X X X X ..... by Shri Bhavin Marfatia, Chartered Accountant. However, after going through the impugned order, with the assistance of the ld.DR, I do not deem it necessary to grant any adjournment to the assessee, therefore, the adjournment application rejected, and the appeal is heard ex parte. 4. A perusal of the record would indicate that the AO has issued notice under section 147 of the Income Tax after recording the following reasons: "4. Vide the first ground of appeal the appellant has challenged the action of the AO in reopening the assessment by invoking provisions of section 147 of the I.T. Act, 1961. In this case assessee has filed its original return of income on 30.07.2002 declaring returned income at Rs. 23,63,583 and claimed refund of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attached the TDS certificate for Rs. 1,07,492 along with original return of income for Asst Year 2002- 03. 4. As per the direction of the CIT(A)-III, Baroda, the balance of TDS credit of Rs. 1,07,492 was allowed in the Asst Year 2002-03 and the revised return of income filed on 31.03.2004 by the assessee for Asst Year 2002-03 was treated as valid vide rectification order u/s 154 dated 20.07.2006 and TDS credit of Rs.2,31,457 was allowed. Reducing refund already granted while processing original return u/s 143(1) dated 27.02.2003 of Rs. 10,44,760 and interest of Rs. 77,733. 5. It is pertinent to note here that in Original return of income, the assessee has shown income of Rs. Nil after claiming deduction under chapter VI-A of business in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 2002-03, As per him such verification is necessitated on account of huge difference of Rs. 98,42,563/- between the income shown in the original return and that shown in the revised return. Also he has stated that the claim of refund granted in original return and the revised return needs to be verified. Thus, the assessment has been reopened only for verification and the AO has not recorded any reason for reaching the conclusion that income/Loss of (-) 74,78,980 and income of Rs. Nil after business income 23,63,583 chargeable to tax has escaped assessment. 4.2.1 Recently Hon.ble Gujarat High Court in its decision in the case of Inductotherm (India) Pvt. Ltd. in Special Civil Application No. 858 of 2006 has held as foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. In the fourth ground also, he had recorded that admissibility of royalty claim was required to be verified. We are in agreement with the contention of the counsel for the petitioner that for mere verification of the claim, power for reopening of assessment could not be exercised. The Assessing Officer in guise of power to reopen an assessment, cannot seek to undertake a fishing or roving inquiry and seek to verify the claims as if it were a scrutiny assessment." 4.3 Thus, as per the ratio laid down by this decision of the jurisdictional High Court as also the other decisions relied upon by the appellant, the in the reopening in the present case for the purposes of verification and assessment is not valid. Hence, the reassessment proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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