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TMI Blog2024 (1) TMI 1391X X X X Extracts X X X X X X X X Extracts X X X X ..... has passed the impugned assessment order holding that the Assessing Officer was justified in making the addition under Section 14A of the Act. Therefore, the issue of dis-allowance under Section 14A of the Act had already merged with the order passed by the CIT (Appeals). In such circumstances, the AO could not have assumed the jurisdiction to issue the impugned notice under Section 148 of the Act on the same ground of dis-allowance under Section 14A read with Rule 8(d) of the Rules. Therefore, the reasons recorded for reopening of the assessment for the year under consideration is nothing but a change of opinion in absence of any fresh material available on record, which is impermissible. Assessing Officer has not be able to justify in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed scrutiny was undertaken. Notice under Section 142(1) of the Act dated 26.10.2017 was issued asking inter alia specific details relating expenses relatable to exempt income (under Section 14A). In response thereto, the petitioner supplied complete details of the same vide letters dated filed on 01.12.2017 and 26.12.2017. 3.3 Thereafter, the then assessing officer framed assessment under Section 143(3) on 28.12.2017 disallowing Rs. 2,54,23,353/- under Section 14A at loss of Rs. 42,90,85,396/- under normal provisions and book profit at Rs. 69,07,05,050/- 3.4 The petitioner appealed against the said order before the CIT(A) and the CIT(A) allowed the appeal of the petitioner on the issue of disallowance under Section 14A under the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order dated 28.012.2017 under Section 143(3) read with Section 92 C A was passed for the year under consideration, wherein dis-allowance of Rs. 2,54,23,353/- under Section 14A of the Act was made. It was submitted that in view of such facts, the impugned notice recording the reasons for the same issue of disallowance under Section 14A of the Act would amount to change of opinion. It was further submitted that there is no failure on the part of the petitioner to disclose fully and truly all material facts and therefore, the impugned notice under Section 148 of the Act issued beyond the period of four years shall be without jurisdiction and as per the proviso to Section 147 of the Act. 5. Learned advocate Mr. Soparkar submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he original proceedings and therefore, there is an escapement of income to that extent. It was, therefore, submitted that the impugned notice is issued after considering the material available on record and the Assessing Officer has also rejected the objections filed by the assessee considering that there was sufficient information to reopen the assessment in the case of the petitioner. 7. Having heard the learned advocates for the respective parties and considering the facts of the case, it is not in dispute that the petitioner has issued the dis-allowance under Section 14A of the Act was considered during the course of the original assessment proceedings and after considering the submissions made by the petitioner, Assessing Officer made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as under:- 6. prior to Direct Tax Laws (Amendment) Act, 1987, reopening could be done under above two conditions and fulfillment of the said conditions alone conferred jurisdiction on the Assessing Officer to make a back assessment, but in section 147 of the Act [with effect from 1st April, 1989], they are given a go-by and only one condition has remained, viz., that where the Assessing Officer has reason to believe that income has escaped assessment, confers jurisdiction to reopen the assessment. Therefore, post-1st April, 1989, power to re-open is much wider, However, one needs to give a schematic interpretation to the words reason to believe failing which, we are afraid, Section 147 would give arbitrary powers to the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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