TaxTMI 
TaxTMI 
2017 (11) TMI 1476
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....st of the assessee. 2. The learned CIT(A) erred in holding that the proceedings u/s. 147 are validly initiated in spite of reproducing the facts which go to show that there was no new material to initiate proceedings u/s. 147 on an assessment that was made after scrutiny, and further in not following any of the judicial pronouncements that are cited. 3. The learned CIT(A) erred in confirming disallowance of Rs. 25,19,660/- made u/s. 40(A)(3) without appreciating the fact that the site was not purchased by the assessee and that no cash payment made to a single party has exceeded Rs. 20000/ - per day, towards purchase of materials. 4. The learned CIT(A) erred in confirming levy of interest u/s. 234-B in reassessment....
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....AO, however, did not agree. While recording that 'though the documents were registered in the individual names and purchased from their own sources', AO considered the amount of Rs. 1,20,00,000/- (wrongly recorded as Rs. 1,20,000/- in the satisfaction note) and also the payments which are verified in the scrutiny, to disallow an amount of Rs. 25,19,660/- in the reassessment u/s. 143(3) r.w.s. 147. 5. Before the Ld.CIT(A), assessee contended that the provisions of Section 40A(3) are not attracted and further reopening of assessment u/s. 147 is not as per the provisions of law. The detailed submissions and case law relied were meticulously extracted by the Ld.CIT(A) in his order from page No. 6 to 11, but unfortunately, Ld.CIT(A) did not a....
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....atisfaction note placed in Paper Book at page 14 and objection filed before AO vide the letter dt. 04-12-2013 and how the same are rejected by AO in para 4 of impugned order. It was also further contended that Ld.CIT(A) has not adjudicated the issue at all. 7. Ld.DR, however, submitted that assessee has not fully disclosed the information as can be seen from the satisfaction note and the information called in survey was not used by the AO in the assessment u/s. 143(3) originally. So, the reopening u/s. 147 is as per the facts and law. 8. I have considered the rival contentions and facts placed on record. It is a fact that survey operations were conducted during the financial year itself and the AO came to know that the AOP was doing b....
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....n made by K.Chenna Kesava Rao at the time of Survey u/s133A of the Act on 25-01-2006 that out of payment of Rs.l,30,64,800/- made an amount of Rs.l,20,000/- was paid by way of cash for purchase of site admeasuring 1000 square yards' from M/s. Jayabheri Enclave during the period of Jan-March. 2005. Further, as seen from copies of cash bills placed on record, out of Rs. 13,34,294/- debited, an amount of Rs. 5,98,300/- was paid by way of Cash towards bricks, sand, etc., . (3) From the above payment made by the assessee, it is clear that the assessee violated provisions of sec. 40A(3) of the Act according to which the disallowance is required to be made towards under assessment of income to the tune of Rs. 25, 19,660/- (20% of the ....
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....he reopening per se is on wrong appreciation of facts and comes within the purview of change of opinion. 10. The reopening was done after four years from the end of the assessment year. The provisions of Section 147 are as under: "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 ....