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TMI Blog2013 (2) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... ized and an order under section 143(3) of the IT Act was passed on 09.02.2004. The AO, on 26.03.2008, issued notice under section 148, against which, the assessee requested the AO to treat its original return to be return in response to the notice under section 148, which was completed on 20.10.2008. 4. The assessee, during the proceedings before the CIT(A), raised an additional ground challenging the action of the AO to reopen the proceedings under section 148, wherein, the CIT(A) sustained the action of the AO, holding, it is not necessary that the reasons for which reassessment proceedings are commenced include an addition what is required to be seen is that at the time of initiation of action 147 the AO should have had the reason to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the cost of the assets for allowing the depreciation as per I.T. Act . 7. The AR, submitted that vide letters dated 16.01.2004 and 27.01.2004, the assessee responded: 52. Calculation of depreciation The copy of the working of depreciation (as per return of income) after deduction of balance 50% of the CENVAT Credit from the gross value of fixed assets is enclosed herewith as Annexure-46. The copy of the working of depreciation (without prejudice) after deduction of balance 50% of the CENVAT Credit from the gross value of fixed assets is enclosed herewith as Annexure-47. 55. Copy of Double Taxation Avoidance Agreement: The copy of relevant extracts of the Double Taxation Avoidance Agreement between India and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer and therefore, after 1-4- 1989, Assessing Officer has power to re-open, provided there is tangible material to come to conclusion that there is escapement of income from assessment. Reasons must have a live link with formation of belief . 10. The AR further pointed out that the impugned issue was before the Supreme Court in case of ACIT vs ICICI Securities Primary Dealership Ltd., reported in 348 ITR 299(SC), wherein it was held, that since after a mere re-look of accounts which were earlier furnished by assessee, Assessing Officer had come to conclusion that income had escaped assessment, same was not permissible under section 147 as it was clearly a change of opinion and therefore order re-opening assessment was not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that the alleged excess tax credit given to the assessee cannot be regarded as equivalent to a case where his income has been made the subject of exclusive relief. This is clear from the fact that the income on which tax computed has remained unaltered in the reassessment. If that be so, then item (c) of Explanation 1 will not be applicable. Therefore, the reassessment made under section 147(b) of the Act was not valid . 13. The AR, therefore, pleaded that on the facts, which have already been considered by the AO in the original regular assessment proceedings, the AO cannot initiate reassessment proceedings, unless there is some material, available with the AO, to suggest that some income has escaped assessment. Both the points o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd true. A false disclosure is not a true disclosure. The disclosure must not only be true but must be full fully and truly . A fake assertion, or statement, of material fact, therefore, attracts the jurisdiction of the ITO under section 17 . 16. The DR, therefore, pleaded that the AO was justified in reopening the proceedings under section 147/148. 17. The AR, responding in the rejoinder, submitted and reiterated that once the issues in question have been examined in the regular assessment proceedings by way of specific questions, the issue goes out of the parameters defined under the provisions governing reassessment proceedings, though they may be justified in some other proceedings, but they cannot be justified for reassessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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