TaxTMI 
TaxTMI 
2017 (7) TMI 693
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....-09, which in turn has arisen from the order dated 30-03-2014 passed by the ACIT-2(1)Bhopal (in short "the AO" ) under section 143 (3) of Income Tax Act,1961 ( in short 'the Act')whereby taking following ground of appeal:- "Deleting the addition of Rs. 78, 82, 705/- on account of advances received from customers which have been transmitted to the supplier?" 2. Succinctly, facts as culled out from the orders of lower authorities are that the assessee company is 100% owned government undertaking of MP Government and is engaged in promotion of SSI Goods in the State of MP under the orders of State Government. It was noticed from record that the assessee had recovered an amount of Rs. 78,82,705/- from SSI units and paid to WCL on ac....
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....es on Accounts. The assessee submitted that if the transaction of receipt of advance from customer is treated as income then, the amount paid to the suppliers has also to be allowed as expenditure resulting in Nil income is this particular transaction. It was also submitted that the assessee was following this accounting treatment for past several years, however, no such addition was made in past and in subsequent assessment years. In view of these facts, the Ld. CIT (A) has deleted the addition. 4. Being aggrieved, the Revenue has filed this appeal before the Tribunal. The Ld. Sr. D.R. supported the order of the AO. 5. The learned Counsel for the assessee, submitted that no such addition was made in previous years nor in subsequent y....
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....ction 148 of the Act on the ground that reopening of assessment is not justified as all material was disclosed by way of Notes on Accounts in audited balance sheet and accounts, hence, order passed is without jurisdiction and bad-in-law. 9. We have considered the facts of the case. As we have dismissed the Revenue`s grounds of appeal, therefore, the Cross Objection of the assessee becomes infructuous and academic in nature. However, the Ld. A.R. of the assessee insisted before us during hearing to adjudicate the issue of reopening of assessment, hence, same is being considered and decides. The Ld. A.R. submitted that material facts was available on the file of the AO hence, issue of notice u/s.148 amounts to change of opinion , hence, re....
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....come having escaped assessment. Even if there is no failure on the part of assessee to disclose fully and truly all material facts. However in the cases of reopening after 4 Years, the A.O. must have reason to believe that the income had escaped assessment by reason of failure on the part of the assessee is disclose fully and truly all material facts, explanation 2 cannot be read without reading the proviso to sec. 147. In this case mere information regarding claim u/s. 80I and 80IA had been provide to A.O. while completing the original assessment and there was no failure on the part of assessee to disclose fully and truly material facts the re-opening beyond 4 years was not valid.." 10. The power to make assessment or reassessment withi....
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....nce. Unless the ground or the material on which his belief is based, is found to be so irrational as not to be worthy of being called a reason by any honest man, his conclusion that it constitutes a sufficient reason, cannot be overridden. If the Assessing Officer honestly comes to a conclusion that a mistake has been made, it matters nothing so far as his jurisdiction to initiate the proceedings under section 147 is concerned, that he may have come to an erroneous conclusion whether on law or on facts. The court will not in exercise of its extraordinary jurisdiction under the Constitution, examine the sufficiency of the reason which led the Assessing Officer to believe that the income had escaped assessment as held in the case of Shri Praf....