2015 (10) TMI 729

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....itted that no income coming within meaning of Sec.147 r.w.s.2((24)of the IT Act, 1961(in short the Act). According to him, definition of income as given in Sec.2(24)(i) mentioned profit and gains. Further, as per learned AR Sec.28 defined what could be the profits and gains of business or profession and addition arising out of disallowance made under sec.40(a)(ia) for non-deduction of tax at source would not fall under it. In any case, according to him, no speaking order was passed on the objection raised by the assessee to the notice u/s 148. Counsel for the revenue on the other hand, stated that re-opening was rightly done. 4. We have seen the orders, recorded reasons and carefully given our mind to the contentions raised by the learned ....

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....tions items falling under 28(iiia)(iiib),(iiic),(iv) and (v). We cannot also say that the reason mentioned by AO was irrelevant, especially since originally the return was subjected only to processing under section 143(1) of the Act. As for the ground raised by the assessee the objection raised by it on the notice under section 148, was not dealt with by the AO, it is necessary to have a look at such objection. This is reproduced hereunder; "2.2. On receipt of the reason recorded, the assessee has filed a letter dated 15-11-2008 stating that though the above cited letter you have given us reason for issuance of notice u/s148 of the IT Act 1961 for the assessment year 2006-07. In this connection, we have to state as follows: Our assessment ....

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....Rs.66,825 5. Alice Sequira Rs.48,000 6. Rosanne D'souza Rs.9,000 Total Rs.2.67,150   As per the learned AR these interests were paid during the currency of the relevant previous year and hence Section 40a(ia) had no application. Reliance was placed on Special Bench decision in the case of Merilyn & Shipping Transports Vs Addl.CIT 136 ITD 23, and that of Hon.Allahabad High Court in the case of CIT Vs Vector Shipping Services (P)Ltd.,357 ITR 642. As per learned AR, SLP filed by the department against the latter decision stood dismissed by Hon Supreme Court in CCNo.8065/2014 dated 02-07-2014. In any case, as per the learned AR, every recipient of interest had furnished 15G/H and hence assessee had no obligation to deduct tax. ....