2016 (3) TMI 822

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....ng disposed of by this common order for the sake of convenience. As the facts are common in all the appeals, we are referring to the facts as obtaining in ITA no. 3914/Del/2014.Grounds raised are as under: "That the learned Commissioner of Income Tax (Appeals) Rohtak has grossly erred both in law and on facts in upholding the initiation of proceedings u/s 147 of the Act and assumption of jurisdiction to frame an assessment u/s 1471143(3) of the Act despite the fact that there was no tangible and relevant material on record to form "reason to believe" that income of the appellant had escaped assessment and thus both deserve to be quashed as such. 1.1. That the learned Commissioner of Income Tax (Appeals) has failed to appre....

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....t society. 4. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in sustaining an addition of Rs. 35203/- to the income returned by the appellant before claim of deduction u/s 80P of the Act. 5 That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in not allowing deduction U/s 80P of the Act on the assessed income of the appellant society 5.1 That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in restricting the claim of deduction to Rs. 50,0001- U/S 80P(2) of the Act. 2. Brief facts of the case are that the assessee had filed its return declaring income of Rs. 45,522/-before deduction u/s 80P(2) of the I.T. Act on 23.08.2007.....

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....ks out to be Rs. 85,2021-. Keeping in view the facts as stated above, I have reason to believe that the income has escaped assessment to the tune of Rs. 23,68 1- i.e. (85203- 61522) by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment jar the assessment year 2007-08." 3. The AO, accordingly, determined the profit u/s 44AD by applying rate of 8% on the gross receipts and determined the income at Rs. 85,203/- before deduction u/s 80P(2). 4. Before ld. CIT(A) the assessee had assailed the initiation of proceedings u/s 148 primarily on the ground that it was a case of change of opinion. Ld. CIT(A), however, dismissed the assessee's appeal observing that s....

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....ntage of completion method. The assessee was asked to file details of all expenditure with justification vide this office notice under sec. 142( 1 ) dated 13.1.2009. The assessee furnished the requisite detail and justification vide its letter dated 10.2.2009, which was examined and verified ... " I thus find that it was not correct to say on the part of the Assessing Officer in the reasons of belief recorded for initiation of reopening proceedings, that the assessee had failed to produce complete books of account along with bills and vouchers, therefore, profit rate @ 8% under sec. 44AD of the Income- tax Act, 1961 is applicable in the case of the assessee who is doing contract business. It is thus apparently a case of change of opinion on....