2013 (3) TMI 814

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.... outset, Ld. counsel for the assessee has not pressed the first legal issue that the assessment order is barred by limitation. On query from Bench, the Ld. Sr. DR stated that he has no objection of the assessee not pressing this issue. Hence, the same is dismissed being not pressed. 3. The second jurisdictional issue raised by the assessee by way of ground nos. 1 and 3 is that the reopening of assessment u/s. 147 of the Act is bad in law as the assessee has jurisdiction to reassess other than the issues in respect of which proceedings were initiated but here he was not justified with the reasons for initiation of those proceedings ceased to survive. For this, assessee has raised following ground nos. 1 and 3: "1.For that in the ....

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....at the assessee has borrowed capital and invested in shares and deducted interest on loan from salary income. Hence, according to him, the reassessment is bad in law. For this, he relied on the decision of Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd. Vs. CIT (2011) 336 ITR 136 (Del) and also relied on the decision of Hon'ble Bombay High Court in the case of CIT Vs. Jet Airways India Ltd. 331 ITR 236 (Bom). On the other hand, Ld. Sr. DR supported the orders of the lower authorities. 5. We find that this is a purely jurisdictional issue and being a legal issue but factually the AO has made disallowance while invoking the provisions of section 14A of the Act but reasons recorded for issuance of notice u/s. 148 of the Ac....