2014 (8) TMI 765

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....) The Ld. CIT (A) erred in law and facts in upholding re-opening of assessment u/s 147 of the Act. The reasons recorded by her for doing so are wrong, contrary to the facts of the case and against the provisions of law. b) The Ld. CIT (A) failed to appreciate the facts with evidences that date of issue of notice u/s 148 is deciding factor of jurisdiction of the AO to re-open the assessment and validity of reassessment. c) The Ld. CIT (A) ought to have verified and categorically decided the date of issue of notice u/s 148 of the Act and reopening of assessment on the basis of audit objection instead she upheld the re-opening on the basis of presumption, assumption and surmises. d) The Ld CIT (A) erred in law and facts in upholding t....

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....come of Rs. 55,84,78,936/-. Subsequently, it is seen that as per assessee companies submission dated 15/12/2009, the break-up of interest debited to profit and loss account amounting to Rs. 13,76,21,548/- on the basis of its direct nexus with the use of funds as under: Particulars Amount of Interest Use Interest paid in finance activity 5,79,82,373 Against giving loan from which interest is earned Interest on borrowings for investment in foreign company 2,10,49,322 Dividend income is taxable Interest paid for business (direct nexus with expansion) 2,25,06,579 Expansion in Wada and Nallagarh unit Interest paid for business activities 3,60,83,274   Total 13,76,21,548   The ....

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....f the assessee dated 15.12.09 was duly considered, discussed and deliberated by the AO in the assessment order dated 24.12.09 passed under section 143(3) of the Act. Now on the basis of the same letter which has already been discussed in the assessment order under section 143(3), the AO has formed a fresh opinion that from the perusal of the said letter, in his belief the income of the assessee has escaped assessment. It has been held time and again by the Hon'ble Jurisdictional Higher Judicial Authorities that mere change of opinion cannot be said to be reason to belief for the AO that income of the assessee has escaped assessment. Reliance can be placed on the decision of the Hon'ble Bombay High Court in the case of "Asian Paints Ltd. Vs.....