TaxTMI 
TaxTMI 
TaxTMI 
2014 (7) TMI 912
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....ment for the Assessment Year 1999-2000. 2. For the Assessment Year 1999-2000, the Petitioner filed its return of income declaring its total income of Rs. 135.53 Crores. In its return of income, the Petitioner had inter alia, claimed benefit of deduction under Section 36(1)(viii) of the Act. The deduction under Section 36(1)(viii) of the Act is available to a public company carrying on business of providing long term finance for construction/ purchase of house for residential purposes. The deduction is granted to the extent of 40% of profit derived from business of providing long term finance for housing. The Assessing Officer during the course of Assessment proceeding considered the Petitioner's claim for deduction under Section 36(1)(....
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.... Therefore I have reason to believe that income chargeable to tax has escaped income assessment. Therefore, assessment proceeding are re-opened u/s. 147. Issue notice u/s. 148 of the I.T. Act." 4. The Petitioner by its letter dated 14th February 2005 objected to the re-opening of the Assessment for the Assessment Year 1999-2000. The Assessing Officer by its order dated 24th February 2005 disposed of the Petitioner's objections to re-open of the Assessment by quoting extensively from the decisions of the Court and thereafter justifying the re-opening of the Assessment for Assessment Year 1999-2000 as under:- "From the above it is clear that if the reassessment proceeding initiated u/s. 147 are within four years then the proviso of fail....
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....at the re-opening of the Assessment can only be justified on the basis of the reasons recorded at the time of issuing the impugned notice dated 29th March 2004 and the same cannot be justified subsequently by affidavit or any other evidence; (c) The reasons recorded do not indicate any tangible material available with the Assessing Officer before issuing the impugned notice dated 29th March 2004; (d) The Assessing Officer had during the course of Assessment proceeding applied his mind to the applicant's claim for deduction under Section 36 (1)(viii) of the Act and devoted as many as 96 pages to consider the above claim. Thus, the impugned notice dated 29th March 2004 now seeks to re-visit the same facts and take adifferent view on the....
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....o determine whether or not the Assessing Officer had jurisdiction to issue notice under Section 148 of the Act. The Court observed that the reasons recorded should be clear and unambiguous. The reasons must also disclose the Assessing Officer's mind and should explain itself. An assessee should not be kept in dark about the reasons leading to the proposed re-opening of the Assessment. In this particular case, as it apparent from the order passed on admission as well as from the bare reading of the reasons furnished to the Petitioner, that one is at a loss as to know what exactly is the reason for re-opening the Assessment for Assessment Year 1999-2000. 9. However, with the assistance of Mr. Suresh Kumar, learned Counsel appearing for t....