TaxTMI 
TaxTMI 
2016 (7) TMI 666
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....fter referred to as "the Act). Later on, the case was reopened u/s.147 of the Act by issuing notice u/s.148 of the Act on 08/09/2005 and the reason for reopening was on account of difference in amount of sub-contract income shown by the assessee in its P&L Account and that shown in the TDS certificates, the difference being to the extent of Rs. 3,38,508/-. Thereafter, assessment was framed u/s.143(3) r.w.s. 147 and 144A vide order dated 18/12/2006 and the total income was determined at Rs. 33,97,402/- inter alia by making addition on account of contract income, labour site expenses, site vehicle expenses, machinery rent expenses and unexplained cash credits, the aggregate of such additions being Rs. 3,25,42,360/-. Aggrieved by the order of the Assessing Officer, assessee carried the matter before the ld.CIT(A), who vide order dated 30/05/2007 (in Appeal No.CIT(A)-XI/258/2006-07) deleted the additions made by the AO and thereby allowed the appeal of the assessee. Aggrieved by the order of the ld.CIT(A), Revenue preferred an appeal before the Tribunal. The Tribunal (ITAT "A" Bench Ahmedabad) vide order dated 31st July-2009 in ITA No.3359/Ahd/2007 for AY 2002-03 set aside the orders o....
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....oceedings. It is a settled proposition of law that in reopening the assessment, there must be tangible material to reach to the conclusion that there was escapement of income from assessment. The reasons recorded by the A.O., must have a link with formation of belief. As the above facts reveals that there is no tangible material on record to indicate the escapement of income and accordingly the link between satisfaction and initiation of proceedings is missing. Accordingly, in my considered view the proceedings u/s.148 has not been validly initiated. The appellant has rightly placed reliance on the cases of Raymond Woollen Mills Ltd. vs. ITO 236 ITR 34 (S.C.) and CIT vs. Kelvinator of India Ltd., 320 ITR 561 (S.C.) 3.5. It is also a matter of fact that the A.O. has not made addition against the suppressed income of Rs. 3,38,508/- in the impugned assessment order as mentioned in the satisfaction for reopening the assessment. It is a well established proposition of law that the assessing officer can make other additions along with the addition as mentioned in the satisfaction for re-opening the assessment, however, the reverse process cannot be followed i.e. if the addition ....
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....ddress from whom contract receipt was received. q) Details of labour site expenses r) Details of site vehicle expenses s) Details of machinery rent t) Reconciliation of contract income u) Copy of TDS return v) Details of unabsorbed losses/depreciation w) Copy of wealth tax return x) Apart from this, the appellant on 21/9/2010 had submitted complete books of accounts along with vouchers, bills, cheque books, slip books, etc. The A.O. has not taken cognizance of these evidences while passing the assessment order. It is also a matter or record that the A.O. had not found any specific defects in the books of accounts inspite of the fact that all the relevant details were submitted during the assessment proceedings. It is an established proposition of law that in the absence of the specific the books of accounts cannot be rejected. Reliance in this regard is placed on the cases of a) Pandit Brothers vs. CIT 26 ITR 159 (Punj) b) Ashoka Refractors Pvt.Ltd. vs. CIT 279 ITR 457 (Cal.) c) Vidhya Traders Vs. CIT 74 ITR 279 (Mys) d) ACIT Vs. L.M.P.Tractors Pvt.Ltd. 148 ....
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....ue's appeeal) has raised following grounds:- 1. The learned CIT(Appeals) has erred in granting the relief and deleting the addition only to the extent to income determined by the Assessing Officer, i.e. Rs. 65,26,337/- as against the relief claimed in the grounds of appeal of showing the actual business los suffered of Rs. 2,91,44,958/-. Thus the learned CIT(Appeals) has erred in giving relief only to extent of Rs. 65,26,337/- against the addition made of Rs. 3,56,71,295/-. It is submitted that the entire addition made by the Assessing Officer ought to have been deleted by the learned CIT(Appeals). It is submitted that the loss as per Return of income of Rs. 2,91,44,958/- be allowed now. 2. The CIT(Appeals) has erred in disposing the ground of charging interest u/s.234A, 234B and 234D and also of non-granting of interest u/s.244A holding and deciding that it is pre-matured. It is submitted that the assessee is not at all liable to pay any interest and therefore, it is submitted that the same be held now. 4. We first take up Revenue's appeal in ITA No.1454/Ahd/2012 for AY 2002-03. 4.1. First ground is with respect to quashing of assessment order. 4.2. Befo....
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....he assessee and further we find that the ld.CIT(A) has also noted that AO in the Remand Report dated 28/03/2012 and opined that the impugned suppressed receipts were declared by the assessee in the income-tax return. We further find that in the assessment order framed u/s.144 r.w.s.254 of the Act vide order dated 14/12/2010 in the second round of appeal also, no addition of suppressed receipts has been made by the AO. Thus, there is no addition of suppressed receipts of Rs. 3,38,508/- in the reassessment proceedings, meaning thereby that no addition was made on the ground which was the basis for reaching the conclusion of escapement of income in the reasons recorded for issuance of notice u/s.148 of the Act. We find that the Hon'ble Bombay High Court in the case of CIT vs Jet Airways (I) Ltd. reported at (2011) 331 ITR 236 (Bom.) on the issue as to whether addition on other grounds could be made when no addition has been made of the income, which was initially the basis of reopening has decided the issue in favour of assessee. The Head Note of the decision is reproduced hereunder:- "Reassessment-Scope-Items unconnected with escapement for which notice was issued-When Expln....