9911796707
TMI Blog2005 (1) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... there is no subsequent information with the Department to reopen the completed assessments. He argued that the assessments for the asst. yrs. 1995-96 and 1996-97 were originally framed in scrutiny case under s. 143(3) of the Act wherein after due consideration, the AO allowed the claim of the assessee under ss. 80-I and 80HH of the Act. He argued that the notice of reassessment under s. 147 for the asst. yr. 1995-96 is dt. 25th Oct., 2000, which is beyond the statutory period of 4 years and, therefore, is void. He relied on a series of decisions in support of his arguments reported in Tantia Construction Co. Ltd. vs. Dy. CIT (2002) 177 CTR (Cal) 419 : (2002) 257 ITR 84 (Cal), Jayshree Tea Industries Ltd. vs. Dy. CIT (2001) 165 CTR (Cal) 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the interest income has been earned on business assets and the expenses thereof have to be allowed and the amount of interest paid by the assessee is more than the interest earned by it, hence, there is no question of escapement of income. He argued that the ratio of the decision of the Special Bench in the case of Lalsons Enterprises vs. Dy. CIT (2004) 82 TTJ (Del)(SB) 1048 : (2004) 89 ITD 25 (Del)(SB) is clearly applicable to the facts of the case. 3. The learned Departmental Representative argued that the reopening of the assessment for the asst. yrs. 1996-97 and 1997-98 is not beyond the period of 4 years and is, therefore, valid. He argued that the provision of cl. (c) of Explanation to s. 147 is applicable to the facts of the case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot been properly computed since the assessee has also some interest income, which was not considered at the time of original assessment We find that the assessee has disclosed all the material facts at the time of original assessment made in its case. The case of the assessee is that its interest income is also derived from activities of industrial undertaking. We find that at the time of reopening the assessment under s. 147 of the Act, a definite satisfaction has to be arrived at by the AO that income liable to tax has escaped assessment. The completed assessment cannot be reopened on a mere change of opinion. The assessee has claimed deduction which was granted by the AO and there was no omission or failure on the part of the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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