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TMI Blog2024 (4) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... 014-15 to AY 2017-18, against common order dated 31.07.2023 passed by Ld CIT(A)-52 Mumbai for the quantum of assessment passed u/s 143(3)/147 of the Act. In assessee appeal, reopening issue was raised in all four years. Since basis of challenge is identical in all four years, hence AY 2014-15 Appeal No. 3469/M/2023, taken for adjudication, where in the appeal Memo assessee raised following grounds:- 1. On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in reopening the assessment completed u/s. 143(3) r.w.s 153C of the Income Tax Act, 1961, without considering the facts and circumstances of the case. 2. On the facts and circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing strictly on the basis of the reasons recorded, and instead, referring to/relying upon finding not mentioned therein. 1.4 That the CIT(A) erred on facts and in law in not appreciating that reassessment is barred by limitation in terms of section 149 of the Act, since reasons recorded (that too, without copy of sanction obtained under section 151) were communicated much after the expiry of limitation period as prescribed in that section. 1.5 That the CIT(A) erred on facts and in law in not appreciating that the reassessment order was without jurisdiction, illegal and bad in law, since sanction obtained under section 151 was not provided to the appellant, much less within limitation prescribed in section 149 of the Act. 1.6 That the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Goodwill and claiming huge amortization expenses during AY 2014-15. The details are as under: Sr. No. Information Source Nature of Information Amount 1 DDIT(Inv.), Unit-8(1), Mumbai use of the instrument of amalgamation for evasion of taxes 6,85,05,730 Total 6,85,05,730 3. As per the above information, it is apparent that the assessee has earned an income to the tune of Rs. 6,85,05,730/- during the relevant previous year. Since the assessee has not included this amount in the income while filing return of income for AY 2014-15, this income has escaped assessment. 4. In this case return of income was filed by the assessee for the year under consideration. However, in this case no assessment was made an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y on tangible assets amounting to Rs. 1,49,734/-. Accordingly, it is undisputed fact that no depreciation claimed on such goodwill in the return of income u/s 32 of the Act. Ld AR also pointed out that in the order passed u/s 143(3) read with section 147 of the Act, the Ld AO has disallowed depreciation u/s 32 but not disturbed book profit computed u/s 115JB of the Act, which clearly proves that reference of amortization of goodwill is with regard to depreciation u/s 32 of the Act and not for depreciation claimed in book profit computed u/s 115JB of the Act. Accordingly, he concluded that the Ld AO not only raised irrelevant issue in the reasons recorded but also disallowed depreciation u/s 32 which was never claimed by the assessee company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given in the impugned orders and material referred to before us. The only legal ground involved in this Appeal is, whether the reassessment proceedings u/s. 148 of the IT. Act are illegal and without jurisdiction in the absence of any relevant reasons being recorded in respect of any undisclosed income and recording of requisite satisfaction in respect of any such undisclosed income or not. It is an undisputed fact that in the reasons AO has recorded the escapement of income on account of amortization of goodwill which was not claimed by the assessee in computation of normal provisions of the Act and with regard to adjustment in book profit computed u/s 115JB of the Act AO has not disturbed the same in the order passed u/s 143(3) r.w.s. 147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was deleted by Ld CIT(A) by stating that no such expenses actually claimed by the assessee. The AO in the reasons also recorded incorrect fact that no assessment has been completed in this case u/s 143(3) but assessment u/s 143(3) r.w.s. 153C completed on 29/12/2017 as recorded by the AO on page 1 of the assessment order. The AO also incorrectly stated that provisions of section 147(2)(b) are applicable, whereas in the facts of the case provisions of section 147(2)(c) are applicable where the onus on AO is higher to prove escapement of income. The AO, therefore, recorded wrong, incorrect and non-existing reasons for reopening of the assessment. It makes clear that there is a total non-application of mind on the part of the AO while r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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