TaxTMI 
TaxTMI 
2017 (11) TMI 384
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....d December, 2011 under section 143(3) of the I.T. Act at a total income of Rs. 5,09,670 by making certain disallowances of expenditure. Later on, it was noticed that assessee has not paid payable liability of Rs. 1,26,105 and TDS of Rs. 45,143 into Government account. The A.O. initiated the re-assessment proceedings under section 147 of the I.T. Act after recording the reasons on dated 31st March, 2014. The assessee submitted before A.O. that return originally filed may be treated as return having filed in response to the notice under section 148 of the I.T. Act. The A.O. after considering the explanation of assessee made two additions of Rs. 4,19,585 on account of expenditure and made further addition of Rs. 6,50,000 on account of unexplai....
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.... Reasons for reopening the case u/s 147 of the Income Tax Act, 1961 Name & Address : Smt. Mohinder Kaur Chhatwal, of the assessee : 36/1, East Punjabi Bagh, New Delhi. A.Y. : 2009-2010 PAN : ACQPC4929A Status : Indl. Date : 31.3.2014 Reasons : The assessee has not paid payable liability of Rs. 1,26,105/- u/s 43B. Hence the (1) The assessee has no proof of payment in respect of Govt, duty u/s 438 amounting to Rs. 1,26,105/- and TDS of Rs. 45,143/- was deducted but not deposit in Govt. account. Hence, the same have been omitted to be disallowed u/s 43B. In view above income of above to the tune of Rs.l,26,105/- 1,71,248/-....
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....d that A.O. has not made any addition of the Government duty under section 43B of the I.T. Act in the re-assessment order as well on which reasons for reopening are recorded. He has therefore, submitted that the A.O. recorded incorrect and non-existing reasons. Therefore, initiation of re-assessment proceedings is bad in law. 5. Ld. D.R. however, relied upon the order of the A.O. 6. Considering the facts of the case in the light of material on record, I am of the view that initiation of re-assessment proceedings is bad in law. The A.O. passed the original assessment order under section 143(3) of the I.T. Act and after examining the books of account and material on record, made various disallowances of the expenditure. The A.O. however....
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.... the assessment. The same is not permissible under Law and reopening of the assessment is liable to be quashed. I rely upon the decision of Hon'ble Punjab & Haryana High Court in the case of Atlas Cycle India 180 ITR 319. It may also be noted here that the A.O. did not make any addition in the re-assessment order dated 20th March, 2015 in respect of the issue under section 43B which was solely raised in the reasons recorded for reopening of the assessment. Thus, the entire exercise made by the A.O. is without jurisdiction and is not sustainable in Law. The Hon'ble Karnataka High Court in the case of Berger Paints India Limited vs. ACIT 322 ITR 369 held "that the reassessment notice had been issued for virtually the same reason for which rec....