TaxTMI 
TaxTMI 
2016 (5) TMI 95
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....urn of income on October 31, 2002, declaring a net loss of Rs. 38,98,84,668 which was subsequently revised on November 24, 2003, to a net loss of Rs. 1,77,50,989. The assessment was completed under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") at a loss of Rs. 1,73,14,130. The case was reopened under section 148 of the Act. The reasons recorded for reopening were as under : "Grant/subsidy received after production but not included in income Scrutiny of the case revealed that a sum of Rs. 40,00,000 was shown under the reserves and surplus (capital reserve) in the balance-sheet for the year relevant to the assessment year 2002-03 which was received by the assessee from the State Government as grant....
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....979. Liabilities not disallowed The assessee has deducted GPF subscription of Rs. 3,36,352 but the same has not been deposited in the Government account. This resulted in short computation of income by Rs. 3,36,352." 3. The assessee raised objections to the reopening proceedings which were not accepted by the Assessing Officer and he completed the reassessment proceedings after making the following additions : (i) Rs. 3,36,352 on account of late deposit of GPF contribution under section 43B of the Act. (ii) Rs. 2,53,26,202 on account of late deposit of GPF of employees contribution for payments having been made beyond the due date of deposit. (iii) Rs. 32,37,979 on account of miscellaneous exp....
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....he outset, the learned authorised representative submitted that the issue of assumption of jurisdiction under section 147 of the Act is germane to the entire reassessment proceedings and if that is decided in the assessee's favour, the other grounds will become infructuous. The learned Departmental representative also agreed and we, therefore, proceed initially to consider the assessee's first ground of appeal only and if we deem it fit, the assessee will be heard on the merits at a later stage. 7. The learned authorised representative for the assessee, while arguing on the issue of assumption of jurisdiction under section 147 of the Act submitted that, in the present case, all the facts and information were available with the As....
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....taking action under section 147 of the Act is that the Assessing Officer should have reason to believe that income has escaped assessment. He submitted that this power can be exercised even after the assessee has disclosed fully and truly all the material facts. He further submitted that merely because the case of the assessee was accepted as correct in the original assessment proceedings, the Assessing Officer is not precluded to reopen the assessment. He relied on the orders of the Assessing Officer and the learned Commissioner of Income-tax (Appeals) and submitted that they should be upheld. 9. We have heard the rival contentions and have also perused the records, especially the reasons recorded for the issuance of notice under sectio....
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....ments. We are also of the opinion that accordingly there was no failure on the part of the assessee to disclose fully and truly all material facts necessary for the purpose of assessment. Reference may be made at this juncture to the judgment of Full Bench of the hon'ble Delhi High Court in the case of CIT v. Kelvinator of India Ltd. [2002] 256 ITR 1 (Delhi) [FB] (affirmed by the hon'ble apex court in CIT v. Kelvinator of India Ltd. [2010] 320 ITR 561 (SC)) wherein the hon'ble Delhi High Court has held : "It is not in dispute that the Assessing Officer does not have any jurisdiction to review its own order. His jurisdiction is confined only to rectification of mistake as contained in section 154 of the Act. The power of....