TaxTMI 
TaxTMI 
2013 (7) TMI 447
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....e A.Y 2008-09. Assessee throughout opposed the validity of notice itself. Assessing Officer, however, discarded such objection and proceeded to make additions particularly in respect of fringe benefits paid by the respondent as an employer, in the final order of assessment. Assessee, therefore, carried the matter in appeal. CIT [A] allowed the assessees appeal. He was of the opinion that on the two issues forming part of the reasons recorded by the Assessing Officer viz., disallowances of expenses under Section 14A of the Act and addition of un-utilized CENVAT on raw materials in the valuation of the closing stock, the Assessing Officer in the original assessment had already examined the issues. No such addition could be made in re-assessment proceedings. With respect to the question of fringe benefits tax, he was of the opinion that the Assessing Officer could not have issued notice under Section 148 of the Act in view of the specific provisions contained in the Act. He also recorded that the assessment was reopened on the basis of audit objections raised by the audit party, though issues were already considered by the Assessing Officer in original assessment. Revenue carrie....
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.... the Department, then, in the grab of reopening the assessment, the review would take place but the Assessing Officer has no power to review and therefore, by respectfully following this judgment of Honble Apex Court and also the Tribunal decision cited by learned AR, we decline to interfere in the order of learned CIT (A) considering the facts of the present case. Accordingly, we quash the re-assessment order. The reopening is held to be not valid. From the above, it clearly emerges that the Assessing Officer had recorded three reasons for issuing notice under Section 148 of the Act. Two of such reasons pertained to the extent of earnings exempt from Income-tax, which the Revenue contended should have been disallowed under Section 14A of the Act and the addition of un-utilized CENVAT in valuation of the closing stock. Both these issues were examined by the Assessing Officer in original assessment. Such are factual findings concurrently arrived at by the CIT [A] as well as the Tribunal. CIT [A], in particular, noted that the Assessing Officer had raised several queries with respect to these issues. In that view of the matter, in our opinion, the Tribunal correctly held that any ....
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....erous exemptions and deductions. If the Assessing Officer is burdened with the responsibility of giving reasons for several claims so made and accepted by him, it would even otherwise cast an unreasonable expectation which within the short frame of time available under law would be too much to expect him to carry. Irrespective of this, in a given case, if the Assessing Officer on his own for reasons best known to him, chooses not to assign reasons for not rejecting the claim of an assessee after thorough scrutiny, it can hardly be stated by the revenue that the Assessing Officer can not be seen to have formed any opinion on such a claim. Such a contention, in our opinion, would be devoid of merits. If a claim made by the assessee in the return is not rejected, it stands allowed. If such a claim is scrutinized by the Assessing Officer during assessment, it means he was convinced about the validity of the claim. His formation of opinion is thus complete. Merely because he chooses not to assign his reasons in the assessment order would not alter this position. It may be a non-reasoned order but not of acceptance of a claim without formation of opinion. Any other view would give arbitr....
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....section authorizes the Assessing Officer to issue a notice requiring the assessee to attend to his office, or to produce or cause to be produced, any evidence on which the assessee may rely in support of the return. Section 115WG pertains to fringe benefits escaping assessment and reads as under :- 115WG :: Fringe benefits escaping assessment If the Assessing Officer has reason to believe that any fringe benefits chargeable to tax have escaped assessment for any assessment year, he may, subject to the provisions of section 115WH, 150 and 153, assess or reassess such fringe benefits and also any other fringe benefits chargeable to tax which have escaped assessment and which come to his notice subsequently in the course of the proceedings under this section, for the assessment year concerned (hereinafter referred to as the relevant assessment year). Explanation For the purpose of this section, the following shall also be deemed to be cases where fringe benefits chargeable to tax have escaped assessment, namely :- (a) where no return of fringe benefits have been furnished by the assessee; (b) where a return of fringe benefits have been furnished by the assessee but no....