2016 (4) TMI 44

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....ection 148 of the Income Tax Act, 1961 for initiating proceedings for reassessment under Section 147 of the Act in respect of the assessment year 2007-08. In response to the notice under Section 148 of the Act, the petitioning assessee, a well-known firm of chartered accountants, protested on May 19, 2014. The assessee also referred to a previous attempt at reassessment being arrested by an int....

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.... of Accounting Standard-15 pertaining to employees' benefits, the petitioning assessee was obliged to provide for the total amount that was to be paid to the relevant erstwhile partner, notwithstanding the actual payment not being made in the assessment year 2007-08. The petitioners refer to the accounts for the relevant year and, in particular, to Form No.3CD appended to the accounts for the rele....

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....esent attempt at reassessment can only be regarded as a change of opinion which is not founded on any additional material either discovered by the assessing officer or disclosed by the petitioning assessee. On behalf of the department, it is submitted that even if the petitioning assessee followed the mercantile system of accounting on accrual basis, the deduction of the sum of Rs. 19,20,000/- ....

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....his opinion that the income had escaped assessment was that the accounts of the erstwhile partner, prepared on cash basis, revealed the payment of only Rs. 4,80,000/- in the relevant assessment year and not the amount of Rs. 19,20,000/- as reflected in the accounts of the petitioning assessee. However, that is the precise distinction between the system of accounting on accrual basis and that on....