2015 (8) TMI 831

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....sumption of jurisdiction of the AO. in issuance of a notice u/s 148 of the Act, despite there being "no reason to believe" nor any fresh material to form a belief that income had escaped assessment. 2. With prejudice the aforesaid ground of appeal, on merits, the CIT(A) erred in upholding the disallowance of Rs. 21,93,187/- being misuse charges in respect of premises used for the purpose of business on the ground that the same is in the nature of penalty and does not relate to the year under appeal. 3. The appellant craves leave to add, alter, amend, substitute, forgo, any or all the grounds of appeal before or at the time of hearing." 2. The facts of the case are that the assessee filed the return of income for the Assessment Year....

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....d unless there is a fresh material indicating the escapement of income and reason to believe that income got escape assessment. In the support of this proposition, he relied upon the following judgments: i) CIT Vs. Orient Craft Ltd. in ITA No.555/2012 [29 Taxmann.com 392] ii) M/s A.M. Udyog Ltd. Vs. ITO Wd-4(3), Kolkata ITAT - (2013) 7 TMI 767 iii) Bapalal & Co. Exports Vs. JCIT [2008] 170 Taxman 131 (Mad. H.C.) iv) Aipita Marketing (P.) Ltd. Vs. ITO [2008] 21 SOT 302 (Mum. ITAT) 4. On merits, he submitted that the payment was made not for infraction of any law, but for regularization of the usage of rented billing for commercial purposes as per the scheme announced by the DDA. On the other hand, Ld. DR submitted that the amo....

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.... business. The landlord also on the same day made application to the L&DO/Chief Commissioner vide letter dated 31.05.1961 for use of premises for business purposes and all additional ground rent/charges to be paid. The L&DO vide letter dated 29.09.1961 granted permission for use of premises for business purposes upon payment charges as determined in the said letter. The demand on account of misuse charges of Rs. 21,93,187/- was paid under protest and contested by the appellant. The payment on 16.03.1994 of Rs. 3,94,159/- and by way of FDR with the High Court of 18 lacs. The litigation was pursued before the High Court. The Govt. introduced conversion policy from leasehold to freehold in August 2003 and accordingly to take benefit of the pol....