2010 (9) TMI 18

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.... the first ground of appeal, the assessee has challenged CIT(A)'s upholding the validity of reassessment proceedings under section 147 on the facts of this case. 3. To adjudicate on this grievance, a few material facts need to be taken note of. The assessee is a foreign bank operating in India through a branch office. While its original assessment under section 143(3) was completed on 19th September 2006, without making any adjustments to the income returned by the assessee, the Assessing Officer reopened the assessment by issuing notice under section 147 on 29th May 2007. The reasons for so reopening the assessment were as follows : On perusal of the computation of income, the assessee has shown a profit of Rs 78,32,594 as ....

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.... the assessee is exempted from preparing its books of accounts in terms of requirements of Schedule VI to the Companies Act, and the assessee is to prepare its books of accounts in terms of the provisions of Banking Regulation Act . It is thus contended that the provisions of Section 115 JB do not apply in the case of banking companies which are not required to prepare the profit and loss account as per the requirements of Part II and III of Schedule VI to the Companies Act . Since the provisions of Section 115 JB do not apply to the assessee company, the reasons recorded for reopening the assessment are clearly wrong and insufficient . We are urged to quash the reassessment proceedings on this short ground. 6. Learned Departmental Repre....