2017 (2) TMI 854

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....ons u/s 147 read with 150(1) relying on Hon'ble Income Tax Appellate Tribunal's order in the assessee's case for the A.Y 2006-07 in ITA No.390/Hyd/10 dt. 8.10.2010 to tax only 1/6th of the amount of interest for A.Y 2006-07, tantamount to finding or direction where no right to receive income vests with assessee and also barred by limitation u/s 148 of the I.T. Act". 2. Brief facts of the case are that the assessee, an individual, engaged in the business of executing civil contracts, filed his return of income for the A.Y 2001-02 declaring taxable income of Rs. 9,38,131 and agricultural income of Rs. 7,57,106. There was a survey u/s 133A of the Act on the assessee's premises on 27.12.2001. Consequent to the survey operation, the asses....

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....xpiry of 4 years, the primary conditions for issuance of notice u/s 148 i.e. furnishing of inaccurate particulars or under statement of income did not exist. The assessee placed reliance upon the various case laws in support of this contention. However, the AO was not convinced with the assessee's contentions and observed that the Income Tax Appellate Tribunal had observed that out of the total interest of Rs. 26,75,912, only 1/6th is taxable in the A.Y 2006-07 and the balance amount pertains to the earlier years. He proceeded to complete the assessments and completed the assessments by bringing to tax the 1/6th of the interest received in the relevant A.Y. Aggrieved, the assessee preferred appeals before the CIT (A), who confirmed the orde....

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....o.390/Hyd/2010 has held as under: "... In the facts of the case, we are of the view that the amount of interest as per the accounting entries of the assessee was rightly taxed by the Deptt. However, we find that the Revenue could not contradict the case of the assessee that the amount of interest credited in the books pertains to six years and therefore, could not be taxed in the relevant A.Y alone. We find force in this alternative contention of the learned counsel for the assessee that interest amount pertaining to the relevant A.Y alone could be taxed in this year. Accordingly, we direct the AO to tax only 1/6th of the amount of interest credited in the profit & loss account, which pertains to the relevant A.Y under appeal before us a....

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....Court has held that the Tribunal in the appeal for the A.Y 1953-54 had no jurisdiction to reopen the assessment for the year 1952-53 as there was no sanction in law to enforce the undertaking given by the respondent to make a voluntary return for the year 1952-53 when arguing its appeal for the year 1953-54. It was held that even if the respondent had carried out that undertaking, the assessment for the year 1952-53 should not be re-opened otherwise than in the manner prescribed by law. 9. In the case of Emgeeyar Pictures Pvt. Ltd (cited Supra), the third Member of the Tribunal at Chennai has held that when there is no specific finding or direction in the order of the Tribunal for the A.Ys 2003-04 and 2004-05 that the impugned capital ga....