TaxTMI 
TaxTMI 
2013 (10) TMI 415
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....on respective dates. The chronology of events, are as under: For AY 2002-03 Sl. No. Particulars Date 1 Date of filing of return of income 29-10-02 2 Original assessment order u/s 143(3) of IT Act 31-03-04 3 Notice u/s 148 issued on 20-02-09 4 Assessment order u/s 143(3) r.w.s. 147 of IT Act. 29-12-09 For AY 2003-04 Sl. No. Particulars Date 1 Date of filing of return of income 25-11-03 2 Original assessment order u/s 143(3) of IT Act 30-12-05 3 Notice u/s 148 issued on 15-03-10 4 Assessment order u/s 143(3) r.w.s. 147 of IT Act. 229-10-10 For AY 2004-05 Sl. No. Particulars Date 1 Date of filing of return of income 30-10-04 2 Original assessment order u/s 143(3) of IT Act 30-12-05 3 Notice u/s 148 issued on 15-03-10 4 Assessment order u/s 143(3) r.w.s. 147 of IT Act. 08-09-11 3. The AO recorded the reasons before issuing of notice u/s 148 for AY 2002-03 are as under: "In this case, assessment u/s 143(3) was completed for the AY 2002-03 on 31/03/2004 and assessed income was arrived at Rs. 272,92,17,358/- as against returned income....
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....ing has to be recomputed and needs to be allowed correctly for the AY 2002-03. Apart from the above, as per the revised guidelines, the Assessee is reversing the unrealized interest on NPAs while recognizing the interest income for the AY 2001-02 on wards i.e., to say that the interest income which was accounted for in the previous year on accrual basis was reversed in the subsequent year. The same has been observed by the audit for the AY 2002-03 that an amount of Rs. 5.16 crores has been reduced as unrealized interest income on NPAs for the AY 2002-03 and same is not allowable expenditure as per the provisions of the IT Act. In view of the above stated facts, keeping in view the revised RBI guidelines the claim of depreciation as allowable for securities under AFTS/HFT needs to be correctly arrived as per the correct computation and the balance needs to be disallowed on reconciliation. Also, the Assessee's claim of reversal of interest on NPAs of Rs. 5.16 crores needs to be verified and is to be considered for disallowance as it is not an allowable expenditure. Further, while doing so, the Assessee's claim of broken period interest needs to be ascertained and if claimed ....
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....f section 147 and the issue of claim of interest on NPAs as per the guidelines, the learned counsel for the Assessee submitted that the order of CIT(A) in AY 2001-02 has come up for consideration before the ITAT in ITA No. 95/Hyd/2010 in Assessee's own case vide order dated 04/04/2013. On similar issue, the ITAT elaborately discussed the issue and held that reopening is without jurisdiction. 9. The learned DR, however, reiterated the stand of the Revenue authorities. 10. We have considered the issue and perused the material on record as well as gone through the orders of the Revenue authorities. The facts in these three assessment years are similar to the facts existed in AY 2001-02 wherein also assessment was reopened for considering the same issues after 4 years from the end of assessment year. The ITAT "B" Bench, vide its order dated 04/04/2013 has considered the issue as under: "13. In this case the assessment u/s 143(3) has been completed. Of the three issues, the COD had not granted permission to the Revenue to prosecute one of the issues viz., reversal of interest income recognised earlier, in appeal before the ITAT. Eventhough it is now recognised that approval of ....
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.... 240 ITR 355 (SC). The AO's attempt to classify them at Held to market or ready for sale etc is merely a change of opinion. There has been no fresh facts or evidence collected by the AO on the basis of which he can be said to have come to conclusion that income has escaped assessment. 16. As regards the issue regarding disallowance of unrealised interest, we find that the same are covered by the decisions of CIT Vs. Industrial Financial Corporation India Ltd., 205 ITR 75 (Del.) and Union Bank of India Vs. ACIT, 16 Taxman.com 304 (Mum.) 17. As regards the issue with respect to deduction u/s 36(1)(vii) in respect of debts written off by the non-rural branches of the asessee's bank, is covered in favour of the Assessee by the Cathelic Syrian Bank Vs. CIT [2012] 18 Taxman.com 282 (SC). Thus in the instant case there is nothing new which has come to the notice of the Assessing officer after the original assessment u/s 143(3). The accounts had been furnished by the petitioner when called upon. Thereafter, the assessment was completed under section 143(3) of the Income-tax Act. Now, on a mere relook and review, the officer has come to the conclusion that the income has escaped as....