2013 (8) TMI 327

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....ditional ground assailing order of the CIT(Appeals) insofar he held the reassessment proceedings invalid. 2. Facts apropos are that assessee, a public sector company, engaged in generation of electricity and mining of lignite, had filed its return for impugned assessment year declaring an income of Rs. 750,50,29,607/-. Assessment was duly completed under Section 143(3) of Income-tax Act, 1961 (in short 'the Act') and taxable income was determined at Rs. 787,08,98,057/-. This was subjected to appeal proceedings and the total income was revised to Rs. 759,90,00,060/- pursuant to an order of CIT(Appeals). Thereafter, the assessment was sought to be reopened under Section 148 of the Act and a notice dated 22.3.2011 was served on the assessee....

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....ing, the adjustment of sales related to earlier years ie. 2001-02, 2002-03 & 2003-04 cannot be made in the sale of current year based on the tariff rate passed by CERC as per the decision of Kerala High Court in the case of CIT v. Southern Cables [289 ITR 167]. Bas on the above facts and circumstances of the case, it is clear that, the assessee has not disclosed all the material facts fully and truly before the Assessing Authority, hence the income has escaped assessment. Hence, I have the reason to believe that the income has escaped assessment within the meaning of provisions of section 147 of the Income-tax Act." Assessee objected to the reopening, but this was rejected by the Assessing Officer. Assessment thereafter completed unde....

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....a Ltd. (320 ITR 561). 4. CIT(Appeals) was appreciative of the contentions of the assessee. According to him, during the course of original scrutiny proceedings, a questionnaire was issued by the Assessing Officer requiring the details of calculation of sales reversal of Rs. 301.50 crores and the details of final determination of tariff by CERC for the relevant period. Assessee had given a detailed reply on 13.11.2007. It had also produced a copy of the order of CERC dated 2.11.2005 and the Ministry of Coal order dated 31.1.2006. Assessee also informed the A.O. that CERC also passed a final order for power tariff for the period 1.4.2001 to 31.3.2004 in March, 2007, which required reversal of the billed amount of Rs. 502.15 Crores. As per ....

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....ing the course of original assessment proceedings. A.O. had asked for following details, vide a questionnaire issued during the course of original assessment proceedings:- "(iii) Basis of calculation of reduction in sales figure of earlier year amounting to Rs. 301.50 Crores, along with year-wise break-up of the amount. (iv) Complete details of final determination of tariff by CERC for the relevant periods, if actually determined till date, and the manner in which it has been accounted." Assessee had given a detailed reply along with tariff order of CERC justifying the reversal. It was after considering all these aspects, that the original assessment order was passed by the Assessing Officer on 26.11.2008. It is not a case where no....