2016 (5) TMI 362

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....d the reassessment order passed by the AO are illegal, bad in law, without jurisdiction and time barred and same is illegally upheld by CIT(A). 2. That CIT(A) has erred in law in not appreciating that notice under section 148 is time barred and there is no failure on the part of the appellant to disclose fully and truly material facts necessary for his assessment and hence order passed is without jurisdiction and bad in law. 3. That CIT(A) has erred in law in not appreciating that notice under section 148 is based on change of opinion and without any tangible material and hence order passed is without jurisdiction and bad in law. 4. That CIT(A) has, in view of the facts and circumstances of the case, erred in law and on facts in uphol....

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....148 read with section 143 (2) of the Act. Shri S.C. Dang, CA appeared and filed reply explaining that the assessee has exported handmade artistic things to the tune of Rs. 25,60,368/- and job work at Rs. 97,56,374/- and earned duty drawback of Rs. 3,72,186/- and claimed deduction u/s 10BA at Rs. 16,74,971/- which has been allowed after due scrutiny. Finding the explanation of the assessee not tenable and by relying upon the judgment cited as Liberty India vs. CIT reported in 317 ITR 218 (SC) disallowed the deduction of Rs. 16,74,971/- earlier allowed by the AO vide order u/s 143(3) of the Act and thereby the assessed the total income of assessee at Rs. 10,85,634/-. 3. Assessee carried the matter before the ld. CIT (A) who has dismissed the....

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....TANGIBLE MATERIAL-NOTE FORMING PART OF RETURN MENTIONING AND DESCRIBING THE NATURE OF RECEIPT UNDER A NON- COMPETE AGREEMENT-NOTICE NOT MENTIONING ANY OTHER FRESH MATERIAL WARRANTING REOPENING OF ASSESSMENT-NOTICE NOT VALID-INCOME-TAX ACT, 1961, ss.147, 148. A valid reopening of assessment has to be based only on tangible material to justify the conclusion that there is escapement of income. Held accordingly, dismissing the appeal, that the note forming part of the return filed for the assessment year 1999-2000 clearly mentioned and described the nature of the receipt under a noncompete agreement. The reasons for the notice under section 147 of the Income-tax Act, 1961, nowhere mentioned that the Revenue came up with any other fresh mat....

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....hat it is open to the assessee to contend that notwithstanding that the argument of "change of opinion" is not available to him, it would still be open to him to contest the reopening on the ground that there was either no reason to believe or that the alleged reason to believe is not relevant for the formation of the belief that income chargeable to tax has escaped assessment. In doing so, it is further open to the assessee to challenge the reasons recorded under Section 148(2) on the ground that they do not meet the standards set in the various judicial pronouncements." 8. Following the law laid down by the Hon'ble jurisdictional High Court in the judgment (supra) discussed above, we are of the considered view that assuming of jurisdicti....