2017 (1) TMI 1449

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....Act, 1961 (in short 'the Act'). 2. The Grounds of appeal raised by the assessee and Revenue in their respective appeals are as under :- ITA No. 4221/Mum/2015 (Assessee's appeal) "GROUND I: RE-OPENING OF ASSESSMENT IS INVALID 1. On the facts and in the circumstances of the case and in law, the CIT(A) erred in confirming the action of the Deputy Director of Income Tax - I (2), ("the A.O") in reopening the assessment and passing an order under section 143(3) r.w.s. 147 of the Act despite of the fact that notice u/s. 148 of the Act was issued beyond four years from the end of the relevant assessment year. 2. The Appellant therefore prays that the re-assessment order be quashed as null and void. GROUND II : EXCESS APPLICATION OF IN....

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....tered u/s 12AA of the Act, and for Assessment Year 2003-04 it filed a return of income originally on 17.10.2003 declaring NIL income. In an assessment finalized u/s 143(3) of the Act dated 27.3.2006, the total income was determined at NIL. Subsequently, the Assessing Officer reopened the assessment by issuing notice u/s 148 of the Act dated 24.3.2010 on the ground that income to the extent of Rs. 3,76,104/- had escaped assessment. In the ensuing assessment finalized u/s 147 r.w.s. 143(3) of the Act dated 10.12.2010, the total income was assessed at Rs. 8,05,246/-. Firstly, the Assessing Officer made an addition of Rs. 3,76,104/- on the ground that the deduction for accumulation of income available to the assessee was only to the extent of R....

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....planation-2(b) to Sec. 11(1)(a) of the Act of Rs. 79,54,625/-. In terms of the said claim, assessee exercised the option of accumulating and applying the said sum towards the objects of the Trust within the next 12 months, i.e., in the subsequent Assessment Year of 2004-05. So however, in the prescribed Audit report Form no. 10B such accumulation of amount deemed to have been spent on the objects of the Trust was stated at Rs. 75,78,521/-. This difference has prevailed with the Assessing Officer to hold that the amount of Rs. 3,76,104/- has escaped assessment within the meaning of Sec. 147/148 of the Act and he has, in fact, disallowed the said sum in the impugned assessment. On the contrary, the claim of assessee has been that such differe....

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....n prescribed Form no. 10B annexed with the return, said amount was shown as Rs. 75,78,521/-. The explanation of assessee is that the amount stated in Form no. 10B is an inadvertent mistake. It is quite clear that in the subsequent Assessment Year of 2004-05 when assessee actually spent the said sum, the claim made was to the extent of Rs. 79,54,625/-, as is borne out from the copy of statement of total income for Assessment Year 2004-05 placed in the Paper Book at pages 55 to 66. At the time of hearing, the learned representative pointed out that the claim of application of income to the extent of Rs. 79,54,625/- with respect to Assessment Year 2003-04 stands accepted in the assessment for Assessment Year 2004-05, which has been finalized u....