TaxTMI 
TaxTMI 
2014 (7) TMI 457
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....d as the return filed in response to notice u/s 148. The assessee objected to the reopening on the ground that the same was based on change of opinion. Further, the assessee submitted that all facts were on record at the time of original assessment and, therefore, there was no reason to believe that any income for assessment year had escaped assessment. It was further pointed out that the drop in the accrued bonded income of the assessee, which stood at Rs. 15,321.33 lakh as on 31st March, 2004, had dropped down by Rs. 6,160.73 lakh to Rs. 9,160.60 lakh as on 31st March, 2005. The major reason for such a sharp decline in the accrued bonded income was that during the financial year 2004-05, the corporation had undertaken a major drive to have its valuable storage space, which was occupied by the abandoned cargo/long standing cargo/time barred bonds for a long time in Chennai, Delhi, Mumbai and New Mumbai regions, vacated by auctioning these bonds/cargo with the approval of the customs department. It was clarified that though these auctions helped in liquidation of huge quantity of such bonds/cargo, these auctions did not fetch enough revenue as these bonds/cargo had become obsolete,....
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.... to be correct, can not be said to be cases of mere change of opinion. In view of the above of the above amount of Rs. 91,61,00,000/- is hereby disallowed and added back to the income of the assessee company." 3. Before Ld. Commissioner of Income Tax (appeals) it was pointed out that the assessment had been reopened u/s 148 beyond 4 years of time. The assessee further pointed out that in course of assessment proceedings, assessing officer, on the basis of the material available with him, asked the corporation to file details of which one of the items related to accrued income of bonded stocks. The question with regard to this was as under:- "why income from bonded were house be not accounted for on accrual basis". The assessee submitted that this question makes it very clear that the assessing officer had applied his mind completely and scrutinized all the documents which were available on record at that time. The relevant point regarding the accrued from bonded warehouse was disclosed in note no. 11 of the notes forming part of the accounts which were submitted to the Assessing Officer. On the basis of such notes, the Assessing Officer had raised a query at the time of the origin....
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....by willfully making a false or untrue statement at the time of original assessment. 2. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 5. Ld. Departmental Representative relied on the order of Assessing Officer and submitted that since the accrued income of Rs. 91.65 crore of bonded stocks had not been offered to tax in the relevant assessment year, therefore, income had escaped assessment. Ld. Departmental Representative relied on the decision of Hon'ble Supreme Court in the case of Kalyan Jee and Mahoji company Ltd. 102 ITR 287 and submitted that even if there was no omission on the part of the assessee but the ITO on the basis of information in his possession finds that income chargeable to tax has escaped assessment for any year then the reopening can be done. He pointed out that in the original assessment, the income liable to tax had escaped assessment due to oversight. He submitted that on account of inadvertence or a mistake committed by the ITO, the taxpayer could not be allowed to take advantage of the same. She further relie....
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....ement of income. Since the Assessing Officer at the first assessment in the year t1990, of the land in question to the firm and that the amounts credited to the accounts of the partners who had contributed the lands to the firm, were meant to be the price of the land which was to be actually paid from the collections received by the firm from membership fees as soon as received, as was envisaged admittedly in paragraph 11 of the partnership deed, there was no question of any change of opinion when on the relevant facts being found the Assessing Officer while protectively assessing the petitioner-assessee for the year 1993-94, noted that this was a case for issuance of a notice under section 148, which came to be issued thereafter. When the amount of taxable income and of the tax payable thereon were not ascertained at all by the AO in respect of the transfer made by the assessee in favour of the firm on September 19, 1990, there obviously was no opinion formed in that regard and, consequently, there would not arise any question of a mere change of opinion. In cases where the Assessing Officer had overlooked something at the first assessment, there can, in our opinion, be no questio....
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....984/-. Book profit u/s 115JB was computed at Rs. 62,81,57,738/-. The perusal of assessment records for the Assessment Year 2004-05 reveals that during the assessment year 2003-04 the Assessing Officer not allowed to set off the brought forward business losses as the brought forward business and depreciation losses arose as a result of exemption under section 10(29) claimed by the assessee on the total warehousing receipts whereas the exemption under section 10(29) is allowable on the income from the warehousing receipts, while processing the income for the assessment year 2004-05 the Assessing Officer incorrectly allowed to set off the brought forward business losses of Rs. 26,45,65,670/- against the current year income. The mistake resulted in under assessment of income of Rs. 26,45,65,670/- involving short levy of tax of Rs. 10,91,49,875/- including interest. "Section 143(1) of the Income Tax Act, 1961, provides that an assessment may be completed in a summary manner, interalia, after rectifying any arithmetical error in the return, accounts and accompanying documents. The Assessing Officer is required to make a correct statement of the tot....