TaxTMI 
TaxTMI 
2015 (4) TMI 635
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..... Being aggrieved by the order of the Assessing Officer, appeal was preferred before the CIT(A). Vide order dated 15.05.1996, the CIT(A) allowed the appeal of the assessee. Against the above order of the CIT(A), the Revenue filed an appeal before the Tribunal. 4. Before the Tribunal, the following was the main ground of appeal; "On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in anulling the order u/s.143(3) r.w.s. 147 of the Act." 5. After hearing both the sides, the Tribunal allowed the appeal of the Revenue, vide impugned judgment and order dated 28.08.2002, by holding that the CIT(A) was not justified in cancelling the assessment by relying upon the decision of this Court rendered in the case of Praful Chunilal Patel v. M.J. Makwana, [1999] 236 ITR 832 (Guj). Being aggrieved by the impugned order, the assessee has filed the present appeal. 6. This appeal was admitted on 17.12.2002 on the following substantial question of law; "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the legality of reassessment u/s.147 which sought to reopen a completed scrutiny assessment u/s.143(3) on the b....
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....learned advocate appearing on behalf of the revenue has produced the relevant files from the office of the Assessing Officer. On perusal of the files and the notings and the relevant documents, it appears that the reassessment proceedings have been initiated at the instance of the audit party solely on audit objections. Under such factual aspects, the present petitions are required to be considered." 8. Mr. KM Parikh learned Standing Counsel appearing for the Revenue placed reliance upon a decision of the Apex Court in the case of Calcutta Discount Co. Ltd. v. Income-Tax Officer, Companies District, Calcultta and Another, [1961] 41 ITR 191 and submitted that there were sufficient reasons for the Assessing Officer to believe that the assessment is required to be reopened on the basis of audit report and that the facts, as they emerge in this case, have been properly evaluated by the Assessing Officer and the Tribunal. 8.1 Mr. Parikh further submitted that the decision of this Court in SCA No.8754/2014 on which reliance is placed by Mr. Patel cannot be made the basis for allowing the appeal for the reason that correspondence on which reliance is placed were latter in point of time ....
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....ion 147 of the Act is not such as can be said to have "escaped assessment" within the meaning of that Section. It is well settled that the provisions of Section 147 of the Act are not intended to be employed in a cse of mere change of opinion on a given set of facts in context of a specific provision of the Act. 11. It appears from the record that the formation of belief by the Assessing Officer that certain income has escaped assessment for the year under appeal has been borne only only because of the primary facts furnished by the assessee for the purpose of assessment of its income and other material information available on record. The details of payments made by the assessee to the persons specified in Section 40-A, Audit report u/s.44-AB and the controversy in relation thereto were well within the knowledge of the Assessing Officer who had passed the original order u/s.143(3) of the Act. The information regarding the assessee's claim u/s.80-HHC was also filed along with the return of income in the form of Chartered Accountant's Certificate, which was also referred to by the A.O in his order u/s.143(3) r.w.s. 147 of the Act. 12. At this stage, it would be relevant to refer t....
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....ntage or ratio or fraction; (b) the acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a)." "143(3) : On the day specified in the notice,- (i) issued under clause (I) of subsection (2), or as soon afterwards as may be, after hearing such evidence and after taking into account such particulars as the assessee may produce, the Assessing Officer shall, by an order in writing, allow or reject the claim or claims specified in such notice and make an assessment determining the total income or loss accordingly, and determine the sum payable by the assessee on the basis of such assessment; (ii) issued under clause(ii) of subsection (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may required on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or r....