| |
| The Tax Publishers2021 TaxPub(DT) 2569 (Hyd-Trib) INCOME TAX ACT, 1961
Section 147
While passing the original order section 143(3), the assessing officer did not ask for any further evidences from the appellant and proceeded not to take any adverse view in the matter as discussed above pertaining to R&D expenses. Therefore, it is very clear in view of the detailed explanation filed by the appellant the assessing officer had formed an opinion before passing the original assessment order the appellant had discharged the evidences to the satisfaction of the assessing officer. Therefore in view of the above compliance the appellant was not in default within the proviso to section 147 with regard to R&D expenses. Therefore the second limb of t he reasons recorded under section 147 for reopening fails the test of the said section.
|
Reassessment - Beyond four years - Change of opinion -
Assessee was engaged in business of manufacture of cigarettes and trading of tobacco. AO reopened assessment under section 147 by issuing notice under section 148 to the assessee. AO after considering the submission and explanation made by assessee disallowed foreign exchange fluctuation loss and R&D expenses being capital in nature. However, CIT(A) quashed the reassessment order passed by AO under section 147 Held: CIT(A) observed that while passing the original order under section 143(3), AO did not ask for any further evidences from assessee and proceeded not to take any adverse view in the matter. It was very clear in view of the detailed explanation filed by assessee that AO had formed an opinion before passing the original assessment order and assessee discharged the evidences to the satisfaction of AO. There was no infirmity in the order of CIT(A) in quashing the order of AO passed under section 147 as CIT(A) elaborately discussed and analysed the issue in dispute with various case law at length in his order.
Followed:GKN Driveshafts (India) Ltd. v. ITO & Ors. 2003 TaxPub(DT) 0734 (SC).
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2009-10
IN THE ITAT, HYDERABAD BENCH
 SUBSCRIBE FOR FULL CONTENT
|