2018 (7) TMI 1316

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....missing the ground challenging reassessment order passed by AO merely on change of opinion subsequent to original assessment framed u/s 143(3) of the Act after detailed scrutiny considering replies of the appellant to the queries. Under the facts and circumstances of the case reassessment order is void ab initio and against the sanctions of law. Ld. CIT(A) ought to have quashed order passed on account of change of opinion not permissible under law. It be so held now. 2. Ld. CIT(A) erred in law and on facts in confirming validity of proceedings on the ground that as the query as well as reply of the appellant to the query being cryptic; apparently no detailed inquiry or submissions were made on the issue. Ld. CIT(A) thus erred in concludi....

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....der normal provisions) or Rs. 23,80,65,281/- (under MAT provisions) on 23.02.2011. As per section 37 of the IT Act, 1961, any expenditure (net being expenditure of the nature described in sections 30 to 36) and net being in the nature of capital expenditure or personal expenses of the assessee, paid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head "profits and gains of business or profession." It is seen that the P&L A/c. For period 2006-07 relevant to AY 2007-08 revealed that the assessee company debated Rs. 222.01 lakhs as "loss on sale of stores" (as per sch. 15 - other expenditure). Therefore, this is a capital nature expenditur....

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....reported in [1999] 236 ITR 832 (Guj.) and contended that since the reassessment notice was issued within four years from the end of the assessment year, the case of the assessee is squarely covered by the said judicial precedent. Aggrieved, the assessee carried the matter in appeal before the learned CIT(A) on this issue but without any success. The assessee is not satisfied and is in further appeal before us. 5. We find that the issue is now covered, in favour of the assessee, by the judgment of the Hon'ble jurisdictional High Court in the case of Gujarat Power Corpn. Ltd. Vs. ACIT, [2013] 350 ITR 266 (Guj.), wherein Their Lordships have held that merely because the Assessing Officer does not set out the detailed reasons for not making a ....

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.... certain claim of the assesses is not examined, no queries are raised or answers elicited, it cannot be stated that merely because the Assessing Officer did not reject such a claim in the final order of assessment, he should be deemed to have expressed an opinion with respect to such a claim and any reopening of an assessment of this nature even within a period of four years from the end of the relevant assessment year would amount to change of opinion. In any such case, as long as there is some tangible material on the basis of which the Assessing Officer can form a belief that the income chargeable to tax has escaped assessment, it would be permissible to reopen the assessment in exercise of the powers under section 147, particularly afte....