TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 328
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....aised in reopening of the case had been considered by the Assessing Authority in original assessment vide order dated 21.12.2011 passed u/s. 143(3) of the Act. 2. The Assessing Authority erred in making an addition of Rs. 7,80,475/- which were spent for repairs and maintenance and Ld. CIT(A) has erred in confirming the addition made. 3. That in the original assessment order of dated 21.12.2011 a disallowance of Rs. 3,00,000/- (Rs. three lacs only) out of repairs and maintenance of Rs. 7,80,435/- was made and now a further addition of Rs. 7,80,475/- has been made and in that way an addition made works out to Rs. 10,78,455/- against the total expenses claim of Rs. 7,80,475/- and thus the authorities below have grossly erred in the order p....
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....aking addition of Rs. Rs. 7,80,475/- on account of BOT repair and maintenance expenses. 3. Against the order of the Ld. AO, assessee appealed before the Ld. CIT(A), who vide impugned order dated 04.4.2018 has dismissed the appeal of the assessee. 4. Aggrieved with the order of the Ld. CIT(A), Assessee is in appeal before the Tribunal. 5. At the time of hearing, Ld. Counsel of the assessee has submitted that the reopening has been against the law as the points raised in reopening of the case had been considered by the AO in the original assessment vide order dated 21.12.2011 passed u/s. 143(3) of the Act. He further stated that AO did not have any fresh and new material showing that income of the Assessee escaped for chargeable to tax and....
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....arious proceedings order u/s 143(3) of the Income Tax Act, 1961, was passed on 21/12/2011 wherein disallowance of Rs. 3,00,000/- was made out of Total Repair and Maintenance Expenses of Rs. 7,80,475/-. Though all the details in respect of Repair and Maintenance expenses were given to the Assessing Officer and all the books of accounts have been duly audited by a Chartered Accountants, the addition was made for Rs. 3,00,000/- out of the same. This addition was made after considering the detail of expenses incurred by the assessee for maintenance of BOT. It is noted that the Expenses were mostly paid to the labourers who do not have Bank Accounts and that's why cash payment was made to them certain amounts were spent for purchases of material....
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....ws :- Re-opening the case was made on two points. Claim of Depreciation Expenses of Repair & Maintenance 7.1 A perusal of the reasons would indicate that the Assessing officer has proceeded solely on the basis of return of income, enclosures and information submitted by the assessee company at the time of initial assessment and all the material and information were available with the assessing officer at the time of initial assessment under section 143(3) and the assessing officer was completely satisfied and on that very basis after considering all the details and documents made addition of Rs. 3,00,000/- by disallowing expenses under repair and maintenance expenses. The Reason for Reopening of the case was not based on any other new or ....
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....be invalid in section 143(1) case. Section 147 Explanation 3, has also been reproduced and considered. This is a case of neither escapement of any assessable income nor is there any jurisdiction vested with the Assessing Officer to advert to other issue of capital expenditure and 'ALP' adjustment hereinabove by taking shelter under section 147 Explanation 3 since the same applies only with effect from 1-4-2009 much after the reopening notice and the TPO reference. The assessee's latter two arguments are accepted. So far as the revenue's plea are concerned, the same is not found not to be justifiable in view of the fact that the above stated conditions of existence of tangible material for reopening of an assessment and not m....
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....pletion of assessment proceedings, impugned notice seeking to reopen assessment was to be quashed. 7.7 In the case of CIT v. Mirza international Ltd. [2015] 54 taxman.com 217/229 Taxman 443 (All.). Where the Assessing Officer having completed assessment under section 143(3), initiated reassessment proceedings after expiry of four years from end of relevant assessment year, since it was not revenue's case the that assessee had failed to disclose truly and fully all material facts necessary for assessment, impugned reassessment proceedings deserved to be set aside. 8. Keeping in view of the facts and circumstances of the case and in view of the decisions cited above, in my considered opinion, the action of the AO is a change of opinion case....