TaxTMI 
TaxTMI 
2019 (10) TMI 660
X X X X Extracts X X X X
X X X X Extracts X X X X
....ned by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment had not been satisfied, the reopening of assessment u/s 147, the issuance of notice u/s 148 and subsequent order are all without jurisdiction. 2. That reopening of closed assessment u/s 143(3) beyond four years from the end of relevant assessment year by invoking provisions of sec. 147 on the same set of facts considered under scrutiny assessment made is illegal. 3. That the A.O. cannot take advantage of his own wrong and reopening of assessment after a lapse of four years on mere change of opinion by taking recourse to the provision of sec. 147 twice and Ld. C.I.T. (A) decision in sustaining the reo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er dated 01.12.2010. From perusal of assessment records it is found that the assessee has debited Rs. 27,47,003/- against material cost in the profit Loss account. The ledger account of material expenses shows various payments incurred in cash on different dates in excess of Rs. 20,000/-each, totaling to Rs. 18,21,313/- which are to be disallowed under the provision of section 40A(3) of the IT Act 1961 but the expenses have been allowed by the AO. Hence the amount of Rs. 18,21,313/- is liable to be disallowed and added back to the income of the assessee. I therefore, have reason to believe that the income chargeable to tax of Rs, 18,21,313/-has escaped assessment within the meaning of section 147 of the IT Act 1961 in the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....leakages by way of inflating these expenses, disallowance of Rs. 50,000/- was made. It was the submission of the ld. AR that in the reassessment proceedings, same material was used by the AI which was duly mentioned in the original assessment order as well as in the audit report. It was submitted that once the issue has been examined by the Assessing Officer in the original assessment proceedings, then it is not open for the Assessing Officer to change his view. For this proposition, the ld. AR has relied on the decision of Hon'ble Supreme Court in the matter of CIT vs. Kelvinator of India, 320 ITR 561 (SC) , ICICI Bank Ltd. vs. DCIT, 268 ITR 203, CIT vs. George Williamson (Assam) Ltd., 258 ITR 126 (Gau), Sirpur Paper Mills Ltd. vs. ITO, 11....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eakages by way of inflating these expenses, an adhhoc addition of Rs. 50,000/- is made to the total income to which the assessee has agreed upon. 6. As mentioned herein above, the reasoning for reopening as mentioned in the assessment order clearly shows that the same material which was considered by the Assessing Officer in the original assessment order was again considered by the Assessing Officer in the re-assessment order and based on that, the reassessment proceedings were finalized and income of the assessee was computed at Rs. 23,61,000/-. In our considered opinion, once the material/basis was considered and examined by the Assessing Officer in the original assessment proceedings, which is apparent from the finding recorded by the....