The Tax Publishers

Income Tax--Reassement

Assessing Officer Cannot Reopen a Case for Re-Examining the Issue Taken on in the Assessment Order

Akhilesh Kumar Sah

The assessing officers try to reopen a completed assessment framed by them for re-examining an issue which had been discussed by them in the assessment order or the explanation of which already have been given by the assessee, which should not be the case. The learned examines the possibility of such reopening in view of decided cases.

1. Introduction

The assessing officers try to reopen a completed assessment framed by them for re-examining an issue which had been discussed by them in the assessment order or the explanation of which already have been given by the assessee, which should not be the case.

In PCIT v. Safe Corrugated Containers Pvt. Ltd. (Madras High Court) [TCA No. 450 of 2017, decided on 4-8-2020] : 2020 TaxPub(DT) 3493 (Madras-HC), it has been observed that an assessing officer has no power to review but he has the power to reassess.

2. A recent case

In DCIT v. Indian Metals & Ferro Alloys Ltd. (ITA No.399/CTK/2018 AY 2011-12) decided on 9-9-2020 : 2020 TaxPub(DT) 3702 (Cuttack-Trib) by ITAT Cuttack, the facts in brief were that the assessee filed its original return of income on 29-9-2011 showing total income at Rs.199,01,13,792 and revised the return of income on 31-3-2012 showing total income at Rs.199,01,13,792. The Assessing Officer (for short AO) completed assessment under Section 143(3) of the Act on 14-3-2014 determining the total income at Rs. 408,97,86,830. After giving appeal effect to the order of the CIT(A) dated 7-11-2014, the revised income stands at Rs.209,26,24,384.

The AO issued statutory notice under Section 142(1) to the assessee, which was complied by the assessee. Thereafter, the AO completed the reassessment under Section 143(3)/147 of the Act on 30-12-2016 determining total income at Rs.217,37,15,780 after disallowing expenses of Rs.8,07,91,391 under Section 40(a)(i) of the Act, inter alia, observing that (i) the assessee could neither prove that it had made application to the AO to determine the appropriate portion of the sum so chargeable under Section 195(1) of the Act and neither the undertaking nor the CA certificate for the FY 2010-11 as envisaged in the CBDT circulars was referred to in support of the remittance made abroad and tax was deducted thereon, were in possession of the assessee, which could be produced during the course of hearing proceedings.

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