9911796707
TMI Blog2025 (2) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... bjection of the petitioner against reopening the assessment that was completed under Section 143(3) of the Income Tax Act on 29.06.2015. 2. The reasons for issuance of the impugned notice dated 28.03.2021 reads as under: "You have given interest free loans and advances to sister/related concerns and claimed interest on borrowed funds in the profit and loss account for the Asst. year 2013-14." 3. This was communicated to the petitioner vide communication dated 12.07.2021. The petitioner has also replied to the same. However, by the impugned order dated 29.07.2021, the objection has been overruled with the following observation: "It is clear from the above provisions that though the scrutiny assessment had already been made and the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above stated reasons, it is not a case of change of opinion by the AO. Moreover, in exercise of powers u/s. 119 of the Income-tax Act, 1961, the Central Board of Direct Taxes (CBDT) has extended the dates by 31.03.2021 for taking action u/s. 148 of the Income-tax Act, 1961 vide F.No.225/40/2021/ITA-II dated 04.03.2021 and the same was further extended upto 30.06.2021 vide Notification dated 27.04.2021. Therefore, case laws quoted by the assessee company are not related to the facts of the case. The assessee is directed to furnish the documents and other evidences in support of loans and advances given to sister/related concerns during the course of assessment proceedings. In the above circumstances, objections filed by the assessee are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner has also produced information regarding the audit objections qua interest free loan advanced by the petitioner. 7. It is specifically submitted that in response to the audit objections to the Assessment Order passed on 29.06.2015 under Section 143(3) of the Income Tax Act, the Assessing Officer namely the Assistant Commissioner of Income Tax in his response dated 28.07.2017 addressed to the Director (Direct Taxes - 1) has stated that the petitioner's transaction of giving interest free loan to sister concerns as because of commercial expediency of the business. The balance outstanding has not exceeded free reserves of the company during the year. Further, the company had reserves and surplus to the extent of Rs. 1,11,45,00,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned speaking order. 10. This Court is of the view that the exercise in the impugned notice dated 28.03.2021 issued under Section 143 of the Income Tax Act and the consequential speaking order dated 29.07.2021 which is impugned in the present are unsustainable primarily because the petitioner has made adequate declarations not only in the returns filed by the petitioner on 29.09.2013 which accompanied the balance sheet, profit and loss account. They were submitted to the Assessing Officer before the assessment order was passed under Section 143(3) on 29.06.2015. Even though the assessment order dated 29.06.2015 has not discussed all the points that were raised before the assessment was completed, the information obtained by the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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