2019 (1) TMI 1537

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....r had filed a return of income on 30th November, 2011 declaring loss of Rs. 27.69 crores (rounded off). This included debit of Rs. 14.68 crores (rounded off) of Tangible Assets written off. In turn, this amount of Rs. 14.68 crores included a settlement amount of Rs. 7.30 crores (rounded off) duly shown by the assessee in computation of income. 3. The return in question was taken in scrutiny by the Assessing Officer, who passed an order of assessment under Section 143(3) of the Income Tax Act, 1961 ("the Act" for short) on 10th March, 2014. To reopen such assessment, he has issued the impugned notice, which as can be seen has been done beyond the period of 4 years from the end of relevant assessment year. In order to do so, the Assessing Of....

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....believe that income amounting to Rs. 7,30,68,000/has escaped assessment due to failure on part of the assessee. 6. By not offering this amount to tax at the time of filing return of income or during the assessment proceeding u/s 143(3) of the Income Tax Act, the assessee company has failed to discharge his duties under the Income Tax Act, 1961 which has resulted in escapement of income chargeable to tax amounting to Rs. 7,30,68,000/and any another income chargeable to tax which has escaped assessment and which comes to the notice of the assessing officer subsequently in the course of reassessment proceedings. 7. In this case, a return of income was filed on 30.11.2011 for the year under consideration. Since four years from the end of the ....

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.... facts relevant for the assessment on issue under consideration were not filed during the course of assessment proceeding and the same may be embedded in the documents and books of account in such a manner that it would require due diligence by the AO to extract these information. For aforesaid reasons, it is not a case of change of opinion by the AO. 8.2 In this case more than four years have elapsed from the end of assessment year under consideration. Hence, necessary sanction to issue notice u/s 148 are sought from Principal Commissioner of Income Tax as per the provisions of sections 151 of the Act." 4. Being supplied with the reasons, the assessee filed objections to the notice of reopening of assessment on 8th October, 2018. Such ob....

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....ing the original assessment proceedings. The assessee had made a detailed representation why such claim was valid. In successive communications dated 10th February, 2014 and 13th February, 2014 the petitioner had outlined the reasons why the entire claim of Rs. 14.68 crores and a part of it of Rs. 7.30 crores was allowable. The Assessing Officer did not agree with the assesse on this count and in the order of assessment dated 10th March, 2014 disallowed the entire claim of Rs. 14.68 crores. After noticing the petitioner's representation, in the order of assessment itself, he reproduced the petitioner's representation in this regard, relevant portion of which reads as under : " The expenses incurred on the said projects over the years, whic....