9911796707
TMI Blog2025 (2) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... elhi, has erred in law as well as on facts and in circumstances of the case in upholding action of the Assessing Officer in reopening the assessment under section 148 of the Income Tax Act, 1961 without appreciation of facts and by disregarding the verdicts of the courts. 2. That the Learned Commissioner of Income Tax (Appeals) VIII, New Delhi, has erred in law as well as on facts and in circumstances of the case in confirming the addition of Rs. 1,33,37,000/- written off by the assessee in its books of accounts. 3. That the Learned Commissioner of Income Tax (Appeals) X, New Delhi, has erred in law as well as on facts and in circumstances of the case in confirming the addition of Rs. 2,25,16,000/- written off by the assessee in its boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. CIT(A). Since the assessee opted for alternate remedy where the ld. CIT(A) has made inordinate delay in disposing the petition of the appellant, the circumstances are beyond its control. Thus after considering the reasons stated and the judicial pronouncements relied upon by the assessee, we find there is a reasonable cause in delay in filing the appeal which is hereby condoned and the appeal is decided on merits. 6. Brief facts are that assessee is a company engaged in the business of manufacturing Black & White TV picture tubes and also engaged in the trading activity. The return of income for the year under appeal was filed on 27.10.2017 at a income of Rs. 6,22,510/- after claiming various adjustments. The assessment was originall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reasons recorded which are reproduced at page 1 of the reassessment order which starts with the words " Perusal of the records revealed that in the Profit & Loss account .......". As per ld. A/R the satisfaction was based on the material available on records which has already been considered while framing the assessment u/s 143(3) of the Act and therefore, now based on the same material making allegation that certain income has escaped assessment is a mere change of opinion which cannot per se reason to reopen the concluded assessment. For this reliance is placed on the following: - CIT Vs. Kelvinator of India Ltd. Reported in (2010) 187 TAXMANN 312 (SC) - Global Signal Cables (India) Ltd. Pvt. Ltd. Vs DCIT reported in (2014) 368 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and simply copied the audit objection in the reason recorded. Based on these facts and the circumstances of the case ld. A/R prayed that the reassessment proceedings are merely change of opinion and solely based on the audit objections thus the same deserves to be quashed. 11. On the other hand, ld. Sr. D/R vehemently supported the order of the lower authorities and submits that assessee had not filed complete details of the bad debts claimed in the profit & loss account during the course of original assessment proceedings. He further submits that when complete details were not filed by the assessee, the question that the AO has applied his mind does not arise nor any opinion was framed by the AO. When full facts of claim of bad debts were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and proceeded to reopen the assessment. The reason recorded before issue of notice u/s 148 are reproduced as under: "The assessment u/s 143(3) was completed u/s 143(3) at income of Rs. 622,510/- under normal provisions and under special provisions at Rs. 70,11,000/-. Perusal of records revealed that in the Profit & Loss account (Schedule 9) expenditure worth Rs. 59810000/- has been booked on account of bad debts and advances written off, in which a sum of Rs. 3,69,37,000/- (13337000 + 1084000 +22516000) pertains to investment. Aa this amount was not offered as tax earlier, as such the same should have been added back to the income of the assessee. Thus this as resulted in underassessment of income by Rs. 3,69,37,000/-. I have therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the AO in the original assessment proceedings and figure of income as well as the deductions were worked out by the AO. The claim of bad debts is duly disclosed in the Profit & Loss account which was available with the AO while framing the assessment. Now on the same material AO has tried to cover up the error and omission by way of reopening the assessment without any fresh material which is nothing but mere change of opinion. No new information and/ or tangible material was found and the formation of any opinion based on same facts which were then available with the AO at the time of original assessment is not permissible. The Hon'ble Apex court in the case of CIT Vs. Kelvinator of India Ltd (supra) has laid down that " the assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
