2018 (3) TMI 1354

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.... has grossly erred in confirming the reassessment done u/s 148 of the Act initiated on the basis of audit objections raised by the department which is not only illegal but also whimsical and hence the action of the Ld.CIT(A) is liable to be quashed. 2. Because the Ld.CIT(A) has grossly erred in confirming the whimsical disallowances made u/s 24(a) of the Act by disallowing a sum of- Rs. 10,08,000/- . in the view of following:- a) Rent agreement entered into by the assessee company and by the tenant company mentions the renting of land and Building and no where does it mentions the renting of plant and Machinery. b) The presumption of Ld.CIT(A) that the assessee company has also rented out Plant and Machinery is ou....

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....terial available on record. After going through the affidavit of the assessee, the delay in filing appeal appears to be genuine. Therefore, the delay of four days is condoned. 4. The assessee filed its return of income on 01.11.2004 declaring income of Rs. 22,27,194/- and the same was processed u/s 143(1). On 20.03.2007 there was a search action on the assessee u/s 132 of the Income Tax Act, 1961. While passing the order u/s 153C of the Act dated 24/12/2009, the Assessing Officer completed the assessment at income of Rs. 84,35,280/- and made the following additions: *Addition u/s 68 of the I.T Act of Rs. 55,00,000/- on account of Share Application Money Received; *Disallowance of Rs. 5,55,415/- on account of disallowanc....

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....sment order was passed on 29/12/2011. 6. Being aggrieved by the assessment order the assessee filed appeal before the CIT (A). The CIT (A) dismissed the appeal before the assessee. 7. The Ld. AR submits that in the instant case, the Assessing Officer initiated the reassessment proceedings u/s 147 of the Act by issuing a notice u/s 148 of the Act 30.03.2011 on the basis of the alleged reasons to believe recorded on 30.03.2011. The Ld. AR submitted that for the instant assessment year, assessment was already framed u/s 153C/143(3) of the Act on 24.12.2009 and appeal filed by the assessee against aforesaid order was allowed by the CIT(A) on 25.11.2011, which order of the CIT(A) was upheld by the Tribunal vide its order dated 07.12.2017. ....

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.... Hosiery Mills vs. ACIT reported in 215 ITR 867, Hon'ble High Court of Gujarat has quashed the reopening of the assessment wherein also notice u/s 148 was issued to disallow the claim of deprecation on Building given on rent. 8. The Ld. DR relied upon the order of the Assessing Officer and CIT(A). The Ld. DR also relied upon the decisions of the Hon'ble Supreme Court and Hon'ble High Court. 9. We have heard both the parties and perused the material available on record. The re-assessment done u/s 148 initiated on the basis of audit objections raised by the Department. The audit objections thereafter, was settled by the ACIT. After going through the reasons recorded u/s 148, there was no new material taken by the Assessing Offic....