TaxTMI 
TaxTMI 
2014 (6) TMI 698
X X X X Extracts X X X X
X X X X Extracts X X X X
....this regard he submitted that the return of income was filed on 29.09.2008 declaring loss of Rs.11,01,077/- which was originally processed under section 143(1) of the Act but later on taken up for scrutiny wherein a questionnaire was issued calling upon the assessee to furnish details justifying the loss declared in the return. Vide letter dated 24.06.2010 the assessee was called upon to furnish copy of the audited Balance Sheet, P & L Account alongwith annexures and comparative figures of earlier years and also to file copy of the report under section 44AB, if applicable. The assessee was also called upon to furnish a detailed note on the nature of business activities carried on in the previous year. In response thereto, vide letter dated ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....der of the AO before the CIT(A) on the preliminary issue, i.e. validity of reopening of assessment but the plea of the assessee was rejected by the learned CIT(A) and thus a second appeal was preferred before the Tribunal. 5. The learned D.R. submitted that the assessment was reopened within four years since the assessee ought to have declared minimum profit of 5% under section 44AF of the Act and non-declaration of such profit would amount escapement of income. 6. The learned counsel for the assessee submitted that the assessee furnished details of the loss; in fact the books were audited under Companies Act though tax audit report was not obtained and based on the books of account maintained by the assessee the book results were accepte....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... other hand, the learned D.R. submitted that the Apex Court, in the case of Phool Chand Bajrang Lal vs. ITO 203 ITR 456, observed that if any information comes to the notice of the AO subsequently he is entitled to reopen the assessment within four years. 8. Joining the issue, the learned counsel for the assessee submitted, by adverting the attention of the Bench to para 27 of the said order, that reopening is permissible when some information has come to the notice of the AO subsequent to the completion of assessment and where such information was not previously disclosed, whereas in the instant case the facts were already on record and the turnover being less than Rs.40 lakhs there is no necessity for the assessee to obtain tax audit rep....