2011 (11) TMI 417

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....ppeals are as under: The assessee M/s Amitronics Private Limited is in the business of production of two products viz., (1) Glass Stems and (2) M.F. Glass Rods, which are used in the manufacture of Television sets. This is a total income-tech product and the assessee company is a technical company headed by Mr. Ramesh Kumar Jhunjhunwala, an Electrical Engineer with over 25 years experience in this line and connected glass industry. The production facility of the assessee company is based in Bangalore, Most of the raw materials are imported and only a small percentage is purchased in the domestic market and the bulk of the production is sold in India and there are marginal exports. The assessee is having high profit margin business and he f....

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....eved by the same, the assessee preferred appeals before the Commissioner of Income-tax (Appeals), Bangalore in ITA Nos. 161 to 164/99-2000 and the Appellate Authority by an order dated 16.1.2003 held that the re-opening of the assessment was justified and it was within the limitation prescribed and confirmed the orders passed by the Assessing Officer dismissed the appeals. Being aggrieved by the same, the Assessee preferred ITA Nos.299 to 302/Bang/2003 before the Income Tax Appellate Tribunal and ITAT, Bangalore Bench by the impugned order held that payment of commission is genuine for the services rendered and hence allowable as such and deleted the disallowance of commission for all the four years. However, held that charging of interest ....

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....s satisfaction before issuing notice based upon the material on record and it is not based upon the change of opinion as contended and therefore the same is also justified. The material on record would further show that in view of the statement of Chartered Accountant and the Director whose statements have been recorded during enquiry, the commission paid to M/s Transhed Electronic Limited would be the business expenditure and the Tribunal was not justified in disallowing the petition and granting benefit to the assessee. 6. Learned counsel appearing for the respondent submitted that the initiation of the re-assessment pertaining to the period 1992-93, 1993-94 is barred by time end further the opinion of the Assessing Officer for reopening....

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....itation is concerned, it is clear that the Assessing Officer having recorded reasonable opinion for reopening the assessment for the years 1992-1993 to 1995-1996 has issued notice on 11.12.1996 and wherefore, the said notice is issued is within four years in respect of all the assessment years 1992-1993 to 1995-1996. The contention of the learned counsel appearing for the respondent that the period from the date of issuance of notice should be taken for having exercised power of re-assessment cannot be accepted as it is well settled that the period to be reckoned for the purpose of limitation of four years is the date on which the notice was issued after recording satisfaction of the Assessing Officer and power of re-assessment was exercise....