Appellate Tribunal Confirms Assessment Reopening, Disallows Overdue Interest Provision

The Appellate Tribunal upheld the Ld. CIT(A)'s decisions, dismissing both the Assessee's and Revenue's appeals. The Tribunal affirmed the reopening of assessment under section 147 r/w 148, disallowance of provision of overdue interest, and other issues. The judgments were delivered on August 29, 2017.

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Issues:
1. Reopening of assessment under section 147 r/w 148.
2. Disallowance of provision of overdue interest.
3. Charging of interest u/s 234B of the Act.
4. General grounds of appeal.

Issue 1: Reopening of assessment under section 147 r/w 148:
The case involved cross-appeals by the Assessee and the Revenue against the order of the Ld. CIT (A)-5, Jaipur, regarding the assessment for A.Y. 2011-12. The Assessee challenged the reopening of the assessment, arguing that it was bad in law without jurisdiction. The Ld. CIT(A) confirmed the action of the Assessing Officer in reopening the assessment. The Tribunal upheld the Ld. CIT(A)'s decision, stating that the Assessing Officer did not raise any specific query during the original assessment regarding the issues in question, hence there was no change of opinion. The Tribunal affirmed the Ld. CIT(A)'s order, rejecting the Assessee's appeal on this ground.

Issue 2: Disallowance of provision of overdue interest:
The Assessee contested the disallowance of provision of overdue interest by the Assessing Officer. The Tribunal noted that the Assessee had not demonstrated why the rule of consistency was not followed. The Ld. CIT(A) allowed the disallowance, stating that the interest is covered under section 36(1)(vii) of the Act, not section 37 as claimed by the Assessee. The Tribunal dismissed the Assessee's appeal on this ground, upholding the Ld. CIT(A)'s decision.

Issue 3: Charging of interest u/s 234B of the Act:
The Assessee disputed the charging of interest u/s 234B of the Act. The Tribunal deemed this issue as consequential and did not provide a separate adjudication.

Issue 4: General grounds of appeal:
The Assessee raised general grounds of appeal, which the Tribunal deemed as not requiring separate adjudication.

In conclusion, both the Assessee's appeal in ITA No. 285/JP/2017 and the Revenue's appeal in ITA No. 240/JP/2017 were dismissed by the Appellate Tribunal ITAT Jaipur. The Tribunal upheld the Ld. CIT(A)'s decisions on various issues, including the reopening of assessment, disallowance of overdue interest, and deduction under section 80P(2)(a)(i) of the Income Tax Act. The judgments were delivered on August 29, 2017.

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