TaxTMI 
TaxTMI 
TaxTMI 
2015 (6) TMI 1070
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....peal of the assessee is relating to reopening of assessment under section 147 of the Act. 3. Brief facts of the case are that the assessee has filed its return of income for the assessment year 2008-09 on 30.09.2008 admitting total income of Rs. 1,02,59,730/-. The case of the assessee was selected for scrutiny and after due process, the assessment was completed under section 143(3) of the Act on 28.10.2010. The Assessing Officer has observed that assessee has received dividend income of Rs. 3,32,275/- and claimed exemption under section 10(34) of the Act and the assessee in its return of income has disallowed an expenditure of Rs. 3,687/- towards exempt income. However, the assessee has claimed an expenditure of Rs. 26,45,753/- as interest....
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....inal assessment order was sought to be rectified by reopening the assessment by taking the correct value of the average total value of assets at Rs. 2,25,87,366/- [Rs.22769840 + Rs. 22404892) / 2] instead of the average total value of Rs. 97213312/- [(Rs.91741179 + Rs. 102685444) / 2] taken in the original assessment which resulted into escapement of income. There is no change of opinion by the AO while reopening the assessment. On perusal of the original assessment order, the ld. CIT(A) has found that the AO has not opined on the value of the average value of the total assets and it was a simple mistake committed by the AO in the original assessment order which was sought to be rectified within permissible year of 4 years by reopening asse....
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....e by the Assessing Officer under section 148 of the Act is justified for the reason that as per Explanation 2 (c) to section 148, where the income chargeable to tax are under assessed, it shall be deemed to have been income chargeable to tax has been escaped assessment. Therefore, in our opinion, the Assessing Officer, while passing the original assessment order under section 143(3) has not expressed any opinion as he has only considered the details filed by the assessee. Therefore, the notice issued under section 148 to rectify the mistake on which he has not given any opinion. Thus, it is not amounting to any change of opinion. Accordingly, the case law relied on by the ld. Counsel for the assessee in the case of CIT v. Kelvinator India L....
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....of computation of disallowance under section 14A in the reassessment proceedings is not legally correct since the income escaped with respect to disallowance of expenditure under section 14A to the extent of the arithmetic mistake committed in the original assessment was correctly done by the Assessing Officer as per the law. Therefore, we find no infirmity in the order passed by the ld. CIT(A) and accordingly, the ground raised by the assessee is dismissed. 10. In the assessment year 2010-11, the issue involved is relating to lease rental income. At the time of hearing, the ld. Counsel for the assessee has submitted that the issue of lease rental income is squarely covered against the assessee by the decision of the Hon'ble Jurisdictional....
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....e. Under the circumstances, the AO has computed the disallowance of expenses under Rule 8D of the IT Rules. During the course of appellate proceedings, the AR of the appellant simply relied on the grounds of appeal without substantiating the details of the capital and reserves which were applied for making investments in relation to the exempt income. The AR of the appellant did not make a case submitting the evidences in support of its arguments and grounds of appeal except relying on the case laws cited in the grounds of appeal. However, I find from the details available in the record that the appellant has incurred huge expenditure in the form of interest expense and also other expenses for making or maintaining the investments in relati....
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....t of Bombay that the AO had to enforce the provisions of sub section(l) of Sec.14A even prior to A.Y. 2008-09. Looking into the facts of the case and legal position, the quantum of the disallowance u/s 14A worked out by the AO is legally tenable. Therefore, respectfully following the ratio of the judgements of Delhi Special Bench in the case of M/s Chem Invest Ltd.(supra) and ITAT Chennai in the case of M/s Siva Industries & Holding Ltd.(supra), High Court of Bombay in the case of M/s Godrej & Boyce. Mfg. Co. Ltd. vs. CIT reported in 328 ITR 81, Walfort Stock & Share Investment reported in 41 DTR 233. I hold that the AO is correct in making the disallowance u/s 14A of the IT Act." 12. Before us, the ld. Counsel for the assessee has not ab....