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2016 (12) TMI 1294
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....lso brought to the notice of the Assessing Officer. 03- The petitioner has further stated that the petitioner has received a notice on 18/03/2016 under Section 148 issued by the Assessing Officer initiating reassessment proceedings for the Assessment Year 2009-10. The petitioner has further stated that the petitioner has filed its return afresh in compliance of notice issued under Section 148 and thereafter, applied for reasons for reopening the case. The Assessing Officer provided the reasons for reopening the case and passed an order on 13/05/2016. 04- The petitioner has also filed objections as required under Section 147 of the Income Tax Act and a final order has been passed on 28/11/2016 rejecting the objections. The petitioner's contention is that the action initiated by the Assessing Officer and the order passed by the Assessing Officer dated 28/11/2016 is bad in law as proceedings have been initiated after four years from the end of assessment for the Assessment Year 2009-10. 05- A ground has also been taken that there was no such failure to disclose the true and material facts and in fact the reassessment is emerging from the audit report which was brought to ....
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....tated that assessee has explained only about computation of book profit under Section 115JB in reply but did not informed about the submission of Form No.56-F for claiming exemption under Section 10AA. 10- It has been further stated no document was found or asked for submission of the notice of Auditor of the Company for lower of profit by Rs. 2,94,03,474/- due change in the method of slow moving inventory. It has been stated that assessee has failed to disclose fully and truly all materials facts at the time of assessment proceedings and therefore, the action initiated by the respondent is in consonance with the provisions governing the field. 11- Heard learned counsel for the parties and perused the record. 12- In the instant case, it is an undisputed fact that for the Assessment Year 2009-10 the assessment order was passed by respondent No.1. A notice was issued under Section 148 by the respondent No.1 for initiating reassessment proceedings for the Assessment Year 2009-10. The petitioner has filed its return in compliance of notice under Section 148 of the Act and thereafter, applied for reasons for reopening the case. The Assessing Officer has passed an order on 13/05....
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....unting to Rs. 2,94,03,474/-. 2. Further, you have deducted an amount of Rs. 6,67,37,928/- in item No.5B of schedule MAT. It is noticed that report u/s 10AA in form 56F was not filed by you and also details/calculation sheet for exemption u/s 10AA was not filed. You had stated during the original assessment proceedings that amount of Rs. 6,67,37,928/- was pertaining to income of the Pithampur SEZ unit and the same is eligible for exemption u/s 10AA of the I.T.Act. But there is neither report u/s 10AA in form 56F was found on record nor any details/calculation sheet regarding computation of income eligible for exemption u/s 10AA is placed on record. In the absence of report in Form 56F as required u/s 10AA exemption of Rs. 6,67,37,928/- there is an an escapement of income amounting to Rs. 6,67,37,928/-. A copy of reasons recorded for re-opening the assessment u/s 143(3) in enclosed herewith. In this context, it is also stated that this case has been reopened u/s 147/148 after obtaining prior approval of the Pr. CIT, Ujjain vide his offence letter dated 17.03.2016. You are now requested to please explain as to why an amount of Rs. 2,94,03,474/- as claimed by....
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....ent u/s 148. On 13.05.2016, objections raised by you were rejected along with providing reasons recorded for reopening proceedings and case fixed on 25.05.2016 at 3:00 PM. On the said date request for adjournment was submitted and on 25.11.2016, the assessee again objected the reopening proceedings. The objections raised by you are as under:- 1. We bring your kind attention to the provisions of section 147 "If the Assessing Officer has reason to believe] that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under sub- section (3) of section 143 or this section has been made for the relevant assess....
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....at company had submitted all required information during assessment proceedings and has not withheld any material fact. During the Financial Year 2008-09, the Company's Auditor disclosed under Significant Accounting Policies of the Financial Statement under Schedule 17 at Point No.3 as under: "During the year, the Company has changed its estimate of providing for slow/non-moving inventory as a result of which profit before tax and inventory is lower by Rs. 2,94,03,474/-. The Company submitted the Financial Statement for the FY 2008-09 at the time of original assessment proceedings in which the above facts are duly recorded and was present before the Assessing Officer while making assessment of the case. Also Company has disclosed the income as well as expenses related to unit claiming deduction u/s. 10AA. Company had submitted all the details called for during the course of the original assessment proceedings. The Company has submitted all the relevant material facts regarding the same at the time of original assessment proceedings itself. Hence we humbly submit that extended time period for reopening cannot be invoked for non disclosure of al materia....
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....lth with, then, had the assessee not provided materials and completely, it would not be possible for the authorities under the Act to deal with those issues, discuss them while passing the assesment order and appellate orders. In the circumstances, we do not find that the impugned notice can be sustained. Once we have arrived at this conclusion and on all counts, the assessee's objections refer to the materials which were before the assessing officer for the earlier assessment year, some of which were also the subject matter of revisional/Appellate proceedings, then, we would be failing in our duty if we do not interfere with the Notice in our writ jurisdiction. Once we come to this conclusion, then, we do not find any substance in the contention of Mr. Pinto that this Court cannot invoke its writ jurisdiction. As part of our further duty and to reinforce our conclusion that if the factual aspects and the details are undisputed then the issuance of the notice itself was not called for and if it was not called for, it cannot be upheld. Thus, by invoking the writ jurisdiction we interefere with and quash the same. 4) Assessment year 2006-07- Assessee was a tax resident o....
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....for slow/non moving inventory as a result of which profit before tax and inventory is lower by Rs. 2,94,03,474/-." You did not disclose its income in your return of income and therefore, the same is remained un explained which is escaped assessment amounting to Rs. 2,94,03,474/-. b) Further, you have been deducted an amount of Rs. 6,67,37,928/- in item NO. 5B of schedule MAT. It is noticed that report u/s 10 AA in form 56F was not filed by you and also details/calculation sheet for exemption u/s 10AA was not filed you had stated during the original assessment proceeding that amount of Rs. 6,67,37,928/- was pertaining to income of the pithampur SEZ unit and the same is eligible for exemption u/s 10AA of the I. T. Act but there is neither report u/s 10AA in form 56F was found on record nor any detail/calculation sheet regarding computation of income eligible for exemption u/s 10AA is placed on record. In the absence of report in form 56F as required u/s 10AA exemption of Rs. 6,67,37,928/- there is an escapement of income amounting to Rs. 6,67,37,928/-. Therefore, in view of the above facts of non obtaining details and explanation on the above two reasons for reopeni....
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....missioner of Income-Tax Circle-1(1), Ujjain 14- In the considered opinion of this Court, the order passed by the Assessing Officer makes it very clear that the assessee has failed to disclose fully and truly all materials facts at the time assessment proceedings initiated under Section 143(3). Not only this, Section 149 which provides for time limit of the Income Tax Act and the same reads as under:- "Section 149. Time limit for notice: (I) No notice under section 148 shall be issued for the relevant assessment year,- (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c); (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year; (c) If four years, but nor more than sixteen year, have elapsed from the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped asses....