2015 (12) TMI 1242

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....n 2.3.2000 determining the income at Rs. 14,31,70,390/-. Subsequently, the assessment was reopened u/s.147 of the Act by issuing a notice u/s.148 of the Act on 15.3.2004 and assessment u/s.143(3) r.w. sec.147 was made on 9.3.2005 determining the income at Rs. 13,55,82,595/-. Aggrieved by this, the assessee went in appeal before the Commissioner of Income-tax(Appeals). 3. On appeal, the Commissioner of Income-tax(Appeals) confirmed the addition made by the Assessing Officer. Against this, the assessee carried the matter to the Tribunal. 4. On earlier occasion, before the Tribunal, the assessee has moved petition for admission of additional ground with regard to the validity of reopening u/s.148 beyond 4 years. The Tribunal vide its order i....

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.... buttress the argument, the ld. AR submitted that the issue of deduction u/s.80HHC was also discussed by the Assessing Officer in paragraph 9 at page 5 of the said assessment order. Further, it was submitted that the issue relating to disallowance of contribution towards welfare fund, was considered in assessee's own case for the assessment year 1977-78 in TC Nos.314 & 315 of 1984 dated 11.02.1997 and this issue was decided by the Jurisdictional High Court in favour of the assessee by observing that this expenditure is an admissible deduction while computing the business income of the assessee. Therefore, he submitted that there is no reason to reopen the assessment. The other two issues in dispute, were also considered by the Assessing....

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.... the taxable income, while filing the return of income, nor the Assessing Officer disallowed the same while completing the assessment u/s.143(3) or u/s.143(3) r.w.s.147 of the Act. Further, the ld. DR submitted that the assessee failed to exclude 90% of the non-business income while computing the deduction u/s.80HHC of the Act. Thus, there is an underassessment of taxable incomes on account of excess allowance of expenses, within the meaning of sec.147 of the Act. According to him, this is sufficient reason for re-opening the assessment u/s.147 of the Act. Therefore, the ld. DR submitted that after recording these reasons, the Assessing Officer reopened the assessment u/s.147 of the Act, by issuing notice u/s.148 of the Act. 6.2 Thus, acco....

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.... ITD 78 (Kol). 7. We have heard both the parties and perused the material on record. Admittedly, in this case, the original assessment was completed u/s.143(3) of the Act vide order dated 2.3.2000 and the AO considered the issue relating to royalty payment u/s.40(a)(i) and he also applied his mind with reference to deduction u/s.80HHC of the Act, for which reasons were recorded for reopening the assessment. Further, notice u/s.148 was issued on 15.3.2004 for the assessment year 1997-98 (31.3.1998). Admittedly, notice u/s.148 was issued beyond 4 years from the end of the relevant assessment year for the purpose of considering disallowance of royalty payment and recomputation u/s.80HHC. The AO having applied his mind while framing the assess....