The Tax Publishers2019 TaxPub(DT) 5180 (Kol-Trib)

INCOME TAX ACT, 1961

Section 263 Section 147

A perusal of the reasons recorded by AO for reopening of assessment clearly showed that self- declaration made by assessee regarding non-consideration of service charges received in cash while computing total income as declared in return of income filed originally was sufficient to establish that there was escapement of income to that extent. The same constituted tangible material to form a belief about escapement of income on account of undisclosed service charges and hence, there was no merit in assessee's case that reopening itself being bad in law, assessment made by AO under section 143(3)/147 as well as consequential order passed by CIT under section 263 were invalid.

Revision under section 263 - Erroneous and prejudicial order - Assessee challenged validity of order passed under section 147 and consequential order passed under section 263 -

Assessee challenged the validity of impugned order passed by CIT under section 263 on the ground that original order passed by AO under section 143(3)/147 being invalid, the consequential order passed under section 263 was liable to be cancelled being bad in law.Held: A perusal of the reasons recorded by AO for reopening of assessment clearly showed that self-declaration made by assessee regarding non-consideration of service charges received in cash while computing total income as declared in return of income filed originally was sufficient to establish that there was escapement of income to that extent. The same constituted tangible material to form a belief about escapement of income on account of undisclosed service charges and hence, there was no merit in assessee's contention that reopening itself being bad in law, assessment made by AO under section 143(3)/147 as well as consequential order passed by CIT under section 263 were invalid.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10



IN THE ITAT, KOLKATA BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com