2015 (7) TMI 942

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....r of Income Tax (Appeals) - 6 Mumbai [hereinafter referred as CIT (A)] erred in confirming the action of the AO to reopen the assessment u/s 147 of the l.T Act. The Appellant submits that there is no reason to believe that the income has escaped assessment and reopening is based on mere change of opinion. Thus , the order pas sed u/s 143(3) r.w.s 147 of the l.T Act is bad in law and contrary to the provision of the I.T Act. 2) The CIT(A) er red in conf irming the action of the AO treating the interes t income of Rs. 6,59,331/- on inter corporate deposits as "Income from other Income" as against "Income from Business or Profession" returned by the Appellant and accepted by the department in the original assessment. Your appellant submi....

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....ssee has thus in appeal before us on the issue of reopening of the assessment under section 147 of the Act. 4. We have heard the rival contentions of the Ld. Representatives of both the parties and have also gone through the records. The Ld. A.R. of the assessee has vehemently submitted that the reopening was bad in law. It was based on audited objections only and there was no new material before the AO from which he would have formed an opinion that the income has escaped assessment. Merely on the basis of change of opinion that the interest income earned by the assessee was assessable under the head "Income from other sources" and not as "Business income" as declared by the assessee, itself was not sufficient for invoking provisions of....

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....s at liberty to examine the other aspects relating to the assessed income of the assessee. Hence, we do not find any infirmity in the order of the AO so far as the reopening of the assessment is concerned. This ground is accordingly decided against the assessee. Ground No.2 6. Vide ground No.2, the assessee has agitated the action of the lower authorities in treating the interest income of Rs. 6,59,331/- on inter corporate deposits as income from other sources as against business income claimed by the assessee. It has been submitted before us that the assessee is engaged in the business of granting loans & advances including bill discounting and inter corporate deposits, hence, the interest earned there from is assessable under the head ....