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TMI Blog2023 (7) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the return of income before the revenue authorities. There is no new tangible material with the AO after four years that the assessee company has escaped assessment. Thus, there is no whisper in the reasons recorded, of any tangible material which came to the possession of the Assessing Officer subsequent to the issue of the intimation - no hesitation to hold that the case has been re- opened bereft of the conditions prescribed u/s 148 - assessment u/s 148 is void ab initio. Decided in favour of assessee. - ITA No. 4723/Del/2017 and 5547/Del/2017 - - - Dated:- 1-3-2023 - Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member For the Appellant : Sh. Ved Jain, Adv. For the Respondent : Sh. Atiq Ahmad, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f relevant assessment year and the original assessment was done under Section 143(3) of the Act. 5(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the disallowance of an amount of Rs. 7,70,13,000/- made by AO on account of rebate and discounts claimed by the assessee. (ii) That the said disallowance has been confirmed without appreciating the explanation and evidences brought on record by the assessee to show that the cash discount is different from the quantity rebate and both are accounted for separately in books of accounts i.e. quantity rebate (net of sales) and cash discount (shown under other expense) and claimed accordingly. (iii) That the disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) is legally justified in deleting the disallowance on account of prior period expenditure of Rs. 1 1,35,27,000/- without recording material evidence to reach a conclusion that liability to incur the expenditure was actually crystallized during the year under consideration and by ignoring a fact that the assessee had not proved that liability to incur expenditure of Rs. 11,35,27,000/- was actually crystallized during the year under consideration? 3. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting the disallowance of Rs. 11,35,27,000/- on prior period expenses by ignoring a fact that the assessee was following mercantile system of accounting? 4. Whether on facts and in circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set and Rs. 5,68,10,250/- (after allowing-depreciation 25 percent) should have been added back to the income of the assessee Hence, under assessment of income of Rs, 5,68,10,250/-. iii) The assessee had debited Rs. 11,35,27,000/- on account of arrears on PF contribution on leave encashment for the period 1.10.1994 to 31.3.2005. As these expenses claimed by the assessee are prior period expenditure therefore, it should have been disallowed and added back to the income of the assessee. Hence, under assessment of income of Rs. 11,35,27,000/-. iv) assessee had claimed Rs. 4,73,15,868/- as additional depreciation on plant and machinery as per depreciation chart under Income-Tax Act. As per 3CD Report assessee was engaged in the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he returned income of Rs. 245.21 crores. With regard to rebate discounts, the information was available in P L account which is before the revenue authorities during the assessment proceedings. With regard to the know-how and capitalization, this information was available with the revenue authorities in the notes to accounts which was a part of the financial statement. The details of PF contribution and Leave Encashment are also available during the assessment proceedings. The claim of the additional depreciation was available on the depreciation chart and also in Form 3CD report. With regard to profit chargeable to tax u/s 41, the same is disclosed in Form 3CD. 8. On going through the reasons recorded, we also find th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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