2016 (2) TMI 130

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.... KM PARIKH, ADVOCATE ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Petitioner has challenged notice dated 30.03.2015 as at Annexure-A to thea petition under which the respondent-Assessing Officer desires to reopen the assessment of the petitioner for the Assessment Year 2010-11. Such assessment order was originally framed after scrutiny. To issue such notice for reopening of as....

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....icates that the assessee company had debited Service Tax of Rs. 8,23,397/- under the head administrative & other expenses as per Schedule-IT. In view of the above, the assessee should have offered Rs. 44,23,397/- (Rs.36,00,000/- + Rs. 8,23,397/-) as the total lease rent income and thereafter should have claimed Rs. 8,23,397/- as service tax as expense. Failure to do so has resulted in underassessm....

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..... Any addition now would only be on the basis of change of opinion. II. That there is no escapement of income from tax. A sum of Rs. 8.23 lacs represented service tax on the lease rent. As per the CBDT circular No.4/2008 dated 28.04.2008, the service tax paid by the tenant would not partake the nature of income of the landlord since the landlord only acts as collecting agency for the Gove....

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....ly submitted that even for the assessment completed under Section 115JB of the Act, by virtue of addition of Rs. 8.23 lacs, loss would be reduced. 5. We would focus only on the question of income of the assessee chargeable to tax having escaped assessment. In this context, we may recall that the reason recorded by the Assessing Officer for issuing the impugned notice states that the assessee ha....