TaxTMI 
TaxTMI 
2018 (8) TMI 1556
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....5,93,698/-received by the respondent assessee had not been credited to the profit and loss account, but to the software development account. It was also noticed that income on software development had not been offered on accrual basis. Having reason to believe that income had escaped assessment, notice was issued under Section 148 of the IT Act, to which the respondent assessee filed an e-return on 22.4.2013. Thereafter, income was reassessed and reassessment completed under Section 143(3) read with Section 147 of the IT Act on 12.3.2014, assessing the income of the respondent assessee at Rs. 1,34,63,304/-. 4. Aggrieved by the order of reassessment, the respondent assessee appealed to the Appellate Commissioner, inter alia, contending that the notice under Section 148 of the IT Act was bad in law, as the same was based on change of opinion on the same set of facts and in any case, barred by limitation. 5. By an order dated 22.1.2016, the Appellate Commissioner upheld the action of the Assessing Officer in reopening assessment. The contention of the Revenue that the Assessing Officer had not formed any opinion and there could not be change of opinion was accepted. The Appellate Co....
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....epreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year): Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: Provided further that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: Provided also that the Assessing Officer may assess or reassess such income, other than the income involving matte....
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....me within that period. (3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question. (4) The appeal shall be heard only on the question so formulated, and the respondents shall at the hearing of the appeal, be allowed to argue that the case does not involve such question: Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question. (5) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (6) The High Court may determine any issue which - (a) has not been determined by the Appellate Tribunal; or (b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1). (7) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating....
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.... or whether it directly and substantially affects the rights of the parties and if so whether it is either an open question in the sense that it is not finally settled by this Court or by the Privy Council or by the Federal Court or is not free from difficulty or calls for discussion of alternative views. If the question is settled by the highest court or the general principles to be applied in determining the question are well settled and there is a mere question of applying those principles or that the plea raised is palpably absurd the question would not be a substantial question of law." ....... 23. To be substantial a question of law must be debatable, not previously settled by law of the land or a binding precedent, and must have a material bearing on the decision of the case, if answered either way, insofar as the rights of the parties before it are concerned. To be a question of law involving in the case there must be first a foundation for it laid in the pleadings and the question should emerge from the sustainable findings of fact arrived at by court of facts and it must be necessary to decide that question of law for a just and proper decision of the case. An entirel....