2014 (7) TMI 645
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....r Section 142(1) of the Act. 2. The impugned notice dated 29 Feb. 2012 was issued to the petitioner for Assessment Year 2005-06 i.e. beyond the period of four years from the end of the relevant Assessment Year. The reasons recorded for issuing of the impugned notice as communicated to the petitioner are as under:- "1. On verification of the case records, it is observed that the assessee has claimed deduction u/s.57 as "Interest paid to HDFC" as Rs. 53,65,251/-.During the course of assessment proceedings in the case of the assessee for A.Y.2009- 10, various loan documents, including loan application from the assessee and sanction letter by the HDFC Ltd,., was called for. From these, it is observed that the assessee had taken this loan in F....
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....u/s.24(b). b) In the certificate for interest payment,under the heading "Notes to the borrower", it states that "This certificate is issued in order to enable you to claim the deduction from taxable income under Section 24(b) of the Income Tax Act, 1961", whereas the assessee has claimed the deduction for the same interest u/s.57. 3. Section 57 provides for deduction for expenses in earning "Income from other sources", whereas the interest expense borne by the assessee is interest paid on a Housing Loan to HDFC Ltd.,for which deduction u/s.24(b) for earning "Income from House Property" has been provided in the Income Tax Act. Section 24(b) provides for deduction upon interest paid for loan taken to purchase/construct residential property,....
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....eduction allowed under Section 57 of the Act as to arrive at compute the income under the head income from other sources was appropriate in law. Thus, it was submitted that the impugned notice for reopening of assessment is not based on any fresh tangible material but on the basis of the verifying the record already on record before the Assessing Officer. In the circumstances, prayed for withdrawal of the impugned notice. 4. On 8 January 2013 the Assessing Officer by order dismissed the petitioner's objections to the reasons for reopening of assessment for Assessment Year 2005-06.The order dated 8 January 2013 held that no full and true disclosure has been made while filing the return of income for Assessment Year 2005-06 and that ther....
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....ficer while completing the assessment under Section 143(1) of the Act. Nevertheless, the other requirement for issuing the notice viz. reason to believe that income chargeable to tax has escaped assessment must be satisfied even to reopen an assessment beyond a period of four years from the end of the relevant assessment year as in this case. 7. On perusal of the reasons we find that the reasons for reopening very categorically state that it is only during the assessment proceeding for Assessment Year 2009-10 that various documents including the loan application and sanction letter of HDFC Limited were called for. It is on receipt of the same, the Assessing officer realized that loan which was taken for the purposes of residential property....
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....The principle of res-judicata would not strictly apply in tax matters. However, it may be open to an assessee in a given case to satisfy the authorities that facts are so identical in the earlier years and subsequent years assessments and decision is taken therein on consideration of the facts are such that the revenue is obliged to follow the same. This would, if at all, be a matter to be considered by the Assessing Officer and it is not to be examined in a proceeding challenging the jurisdiction to issue a notice. This is particularly so when the revenue is pointing out features which would possibly militate against taking the above view. In any case the assessment proceeding for the earlier years i.e. 2003-04 and 2004-05 are concerned, M....