TaxTMI 
TaxTMI 
2018 (11) TMI 1649
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....04,27,421/- and Rs. 1,53,31,244/- made on following points. a) The proceedings initiated u/s. 147 of the Act was bad in law and directed to be quashed. b) Disallowance of transportation expenses of Rs. 4,04,27,421/- u/s. 40(a)(ia) of the I.T. Act. c) Disallowance of transportation expenses of Rs. 1,53,31,244/- being 20% of Rs. 7,66,56,222/- u/s. 40A(3) of the I.T. Act. 2. The Hon'ble CIT(A) ought to have upheld the order of the Assessing Officer. 3. It is therefore prayed that the order of the Hon'ble CIT-(A) be set aside to the above extent and that of the Assessing Officer be restored to the above extent. 3. We have heard the arguments of both sides and carefully perused the relevant material placed on the record of the T....
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....he assessment order, it cannot be said that the action of reopening of assessment is based on change of opinion. 5. Replying to the above, the ld. AR strongly supported the first appellate order and submitted that from the reasons recorded, it is clearly discernable that there was no new tangible material with the AO, which was not with him at the time of framing original assessment order, therefore it is a clear case of change of opinion only on the basis of amendment in the provision of s. 40A(3) of the Act therefore, the same is not sustainable and was rightly quashed by the ld. CIT(A) being bad in law. 6. The ld. DR also drew our attention towards relevant paras 5.1 to 5.5 of the first appellate order and submitted that in absence o....
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....053/- on account of transportation charges out of that Rs. 4,04,27,421/- were paid to various parties on which tax at source were required to be deducted as all payments to above parties were exceeding rupees twenty thousand. However as per clause 27 of 3CD report, the auditor reported that no TDS was deducted on any payment. As per provision of section 194C of the Act, TDS was required to be made on above payments. Thus provisions of section 194C of the IT Act were violated. Therefore payment amounting to Rs. 4,04,27,421/- required to be disallowed under section 40(a)(ia) of the Act were not disallowed which resulted in under assessment of income of Rs. 4,04,27,421/-. (B) The assessee had debited P&L A/c. for Rs. 11,71,92,053/- on accou....
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.....2010 i.e., beyond four years of completion of relevant assessment year. As per requirement of first proviso to s. 147 of the Act for initiation of reassessment proceedings regarding assessment order framed u/s. 143(3) of the Act, beyond four years, it is required from the AO to record a clear finding that the income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for that assessment year otherwise reopening of assessment order framed under scrutiny u/s. 143(3) of the Act cannot be made. 11. In the present case, the initiation of reassessment proceedings of assessment order passed u/s. 143(3) o....