TaxTMI 
TaxTMI 
2014 (4) TMI 524
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....oceedings, vide letter dated 18.11.2013, the assessee has also raised an additional ground which reads as follows:- "On the facts and in circumstances of the case, the Ld.CIT(A) erred in not holding that the reopening of the assessment u/s 147 of the Income Tax Act 1961 was bad in law and consequently the assessment made under section 143(3) r/w section 147 is bad in law" Since this ground of appeal deals with the jurisdiction to initiate proceedings on reopening the assessment u/s 147 of the Act involves a question of law which emerges from the facts on record in the assessment proceedings, we admit the same and proceed to adjudicate the appeal. 3. The relevant facts leading t....
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....o use, the interest of Rs.43,36,227/- is not allowable as interest expenditure under the provision of section 36(1)(iii) of the I.T. Act. The wrong claim in respect of such interest of Rs.43,36,227/- resulted in escapement of income to that extent from assessment. Accordingly, in the assessment completed u/s 143(3) read with section 147, the AO disallowed both the claim of deductions and thereby added the same to the total income of the assessee. On appeal, the Ld.CIT(A) confirmed the action of the AO in reopening of the assessment u/s 147 and thereby further confirmed the impugned disallowances made by the AO. Aggrieved by the impugned order, the assessee is in appeal before us. 4. Before us, the Ld.AR for the assessee has contended that ....
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....d after opining on the said details the assessment has been completed by the AO on 20.12.2007 assessing the total income at Rs.91,29,81,779/. However, the reasons recorded for reopening the said assessment do not suggest that any tangible material has come for concluding that there is escapement of income from assessment. In this connection, it is relevant to mention that in the case of CIT vs. Kelvinator of India Ltd. [2010] 320 ITR 561 (SC), the Hon'ble Apex Court has held that the concept of 'change of opinion' must be treated as an in-built test to check abuse of power by AO and that the reasons must have a live link with formation of belief. Hence, after 1-4-1989, the AO has power to reopen, provided there is 'tangible material' to com....