TaxTMI 
TaxTMI 
2019 (4) TMI 1424
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....o appellant company in last week of March; thereby not providing sufficient time to appellant company to support its claim. d. The Learned Assessing officer was supplied with all information/documents in reply to proceedings u/s 154/155 and hence all material was available before Learned Assessing Officer and he could have taken action then only. The issue of notice u/s 147/148 is therefore on account of change of opinion only as no new material had come before Ld. AO. e. The Learned Assessing officer has acted without jurisdiction by reopening case of appellant company u/s 147, when assessment was made under section 143(3) and in absence of any tangible material available with Assessing Officer to form requisite belief regarding escapement of income. f. The Learned Assessing officer has erred in law by passing assessment order u/s 147/143(3) without giving appellant company sufficient time to support its claim after passing order disposing off objections filed by appellant company for re-assessment proceedings u/s 147. 2. The order passed by Learned Assessing officer disposing off objections filed by appellant company for re-assessment proceedings u/s 147 is void, illegal, bad....
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....ed under section 143 (3) of act. Subsequently notice under section 154 of income tax act was issued on 10/8/2011 wherein learned assessing officer raised an objection that expenses of INR 1 0865713/- debited in profit and loss account on account of advances written off is capital expenditure in nature and it should not have been allowed as a deduction as revenue expenditure. The assessee submitted its reply on 10/1/2012 and no orders were passed under section 154 of act. Subsequently notice under section 148 was issued to appellant on 23/03/2012. The assessee vide letter dated 20/04/2012 requested assessing officer to treat original return of income filed in response to notice under section 148. It also asked reasons for reopening of case. The assessing officer was also addressed letter on 25/2/2013. In response to that, learned AO furnished reasons for reopening. Assessee filed its objection on 06/03/2013. Meanwhile assessee also filed a writ petition before honourable Delhi High Court challenging validity of initiation of reassessment proceedings under section 147 which was withdrawn by assessee as meanwhile learned assessing officer has already passed assessment order under sec....
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....or reason wide letter dated 20/04/2012, and on 25/02/2013, assessee reminded the learned assessing officer for giving the reasons. Assessee filed objection on 06/03/2013 raising many questions. He referred to such objection, which is placed at page number 135 of the paper book stating that AO did not have any tangible material, and the necessary conditions of reopening are not satisfied. He stated that in the original assessment proceedings under section 143 (3) the issue has been completely considered by the learned assessing officer and now it is attempt to change the opinion by adopting the assessment proceedings. He referred to the several decisions supporting his argument. He also referred to page number 139 of the paper book which is a letter dated 8/3/2013 of the assessing officer which disposed of the assessee is objection for reopening of the cases. He stated that in that order in para number 3 the AO has stated that on 25/2/2013 a copy of the reasons was again provided to the assessee. He submitted that it is a blatant wrong statement by the assessing officer, as prior to that reasons for reopening were not at all provided. He further submitted that despite having the obj....
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....cer did not at all examine this issue. She referred to the notice issued by the learned assessing officer and reply furnished by the assessee and stated that this issue has not at all been considered during the original assessment proceedings hence it cannot be said that there is an application of mind by the learned assessing officer on this issue. She therefore submitted that not all the decisions cited by the learned authorised representative with respect to the change of opinion apply to the facts of the case. Hence, according to her, there is no infirmity in the reopened proceedings. She further stated that assessee was made well aware of the reassessment proceedings and issue involved therein in 154 notice as well as the 148 proceedings. She stated that the assessee has been given reasons for reopening in time, assessee filed an objection, the learned assessing officer disposed of such objections by speaking order, therefore now the grievance of the assessee that reasons were provided to the assessee by the learned AO belatedly does not survive as assessee was also given complete opportunity. She relied up on [2018] 98 taxmann.com 200 (Madras)/[2018] 259 Taxman 266 (Madras) a....
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....er was passed under section 154 of the income tax act. 8. On the issue of examination of the allowability of the advances written off by the assessee during the original assessment proceedings under section 143 (3) of the act and therefore now reopening on the same issue is a change of opinion which is not permitted as claimed by the learned authorised representative, we have carefully perused the query raised by the learned assessing officer and the reply submitted by the assessee. The relevant documents have been furnished at page number 46 - 47 of the paper book. The learned authorised representative vehemently submitted that when the question dated 31/8/2009 the learned assessing officer raised the similar issue by question number 18 and the assessee replied it. On careful examination of question number 18 it is found that the learned assessing officer has asked about the loans and advances appearing on the assets side of the balance sheet. The learned AO further asked the relationship of the company with the parties to move the advances have been given and whether any interest has been charged on these advances are not. The learned AO further asked to furnish notes on applic....
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....ned the subject matter, claim etc, because the aspect or question may be too apparent and obvious. To hold that the assessing officer in the first round did not examine the question or subject matter and form an opinion, would be contrary and opposed to normal human conduct. Such cases have to be examined individually. Some matters may require examination of the assessment order or queries raised by the Assessing Officer and answers given by the assessee but in others cases, a deeper scrutiny or examination may be necessary. The stand of the Revenue and the assessee would be relevant. Several aspects including papers filed and submitted with the return and during the original proceedings are relevant and material. Sometimes application of mind and formation of opinion can be ascertained and gathered even when no specific question or query in writing had been raised by the Assessing Officer. The aspects and questions examined during the course of assessment proceedings itself may indicate that the Assessing Officer must have applied his mind on the entry, claim or deduction etc. It may be apparent and obvious to hold that the Assessing Officer would not have gone into the said ques....
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.... 23/3/2012. The assessee submitted by letter dated 20/04/2012 to consider the return originally filed on 24/01/2008 as return filed in response to the notice under section 148 of the income tax act. Further, by the same letter the assessee also asked the learned assessing officer to provide reasons to believe possessed by the learned assessing officer in respect of which Assessee Company has escaped assessment within the meaning of section 147 of the income tax act 1961. Assessee further requested for the reopening reasons on 25/2/2013. On that date the learned assessing officer, give the reasons. Assessee was given time to file an objection up to 4/3/2013. The assessee filed objection on 6/3/2013. The learned AO passed an order disposing of the objection raised by the assessee as per order dated 8/3/2013. The learned authorised representative submitted that that these order was never served on the assessee before the service of the assessment order. The assessment order was passed on 20/3/2013. Therefore, it is apparent that assessee was provided the reasons only on 25/2/2013 asking to file an objection up to 4/3/2013 and the objections were disposed off on 8/3/2013 whereas the ....