TaxTMI 
TaxTMI 
2015 (1) TMI 825
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....ee's second reassessment, pursuant to notice under Section 147 of the Income Tax Act, for assessment year 2002-03. It is urged that the findings are erroneous that the reopening of the proceedings was warranted in the circumstances of the case. The assessee, a statutory Central Government corporation, filed its return declaring loss of Rs. 2,65,77,24,891/-. The return was processed under Section 143(1). It was later selected for scrutiny, and notice was served upon the assessee on 17.10.2003 under Section 143(2). During the course of the scrutiny assessment, the assessing officer (AO) framed a detailed questionnaire concerning 18 issues, and asked the assessee to furnish replies and relevant details. The assessee furnished the requisite det....
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....ey were untenable. The revenue's appeal to the ITAT was rejected by the impugned order. 3. It is argued that an examination of the assessee's reply to the questionnaire clearly reveals that while it had originally not claimed these allowances, it did so in the revised return filed by it. This has led to the enquiry by the assessing officer who ultimately chose not to pursue the matter in the light of the assessee's reply dated 10.2.2005. The A.O. categorised this as "reason to believe", under Section 147 of the Act, and sought to justify the reopening in the circumstances of the case. Counsel for the assessee urged that upon the opening of original reassessment pursuant to the first reassessment notice dated 17.3.2006, it was open to the....
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....levant assessment year then such notice would not be issued unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of assessee to make a return under Sec. 139 or in response to a notice issued under Sec.142(1) or Sec. 148 or to disclose fully and truly all material facts necessary for his assessment for that assessment year. Admittedly, the assessee has filed the return under Sec. 139 of the Income Tax Act, 1961. The only requirement left is whether the assessee can be charged with an allegation that it failed to disclose all material facts fully and truly in respect of the income escaped. Thus, operative force of the proviso is, that Assessing Officer should demonstrate, fai....
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....unt relating to prior periods. In this connection, it has referred loss on write off assets also which is sought to be enquired by Assessing Officer in these reasons. The net Rs. 1,70,42,520 worked out by the assessee in the income and expenditure account has duly been taken in the computation of income. For buttressing this learned counsel for the assessee drew out attention towards Annexure B at page 22 of the paper book wherein computation of assessable income/loss has been placed on record. In this computation, he pointed out that prior period expenditure charged to the P&L account has been added at Rs. 1,70,42,520. The learned counsel for the assessee similarly explained the other items. After going through all the details, we find tha....