TaxTMI 
TaxTMI 
2016 (3) TMI 1371
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.... and in law, the Ld. CIT(A) erred in allowing the disallowance of MICR charges of Rs. 23,94,249/- u/s 40(a)(ia) of the I.T. Act as the decision of the Hon'ble Supreme Court relied on by him relates to section 201 of the Income Tax Act. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing the disallowance of Rs. 58,94,437/- u/s. 40(a)(ia) of the I.T. Act as the decision of the Hon'ble Supreme Court relied on by him relates to section 201 of the Income Tax Act. 3. The appellant therefore, prayed that the order of the CIT(A) be set aside and that of the Assessing Officer be restored. 3. In ITA No. 2194/Mum/2013, the assessee has raised following grounds of appeal: 1. Re....
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.... Assessee company filed return of income declaring total income of Rs. nil under normal provisions & Rs. 263,48,14,645/- u/s 115JB/-. Order u/s 143(3) was passed on 30/11/2007 assessing the total income of Rs. 1796,96,08,020/- 2. It is seen that in order u/s 143(3) dated 30/11/2007, the amount of Rs. 170790.09 lakhs was computed as total expenses towards earning of exempt income & this amount was not added back to book profits u/s 115JB as per explanation 1(f). Further, as per CIT(A) order dated 31/03/2009, the expenses disallowable u/s 14A have been computed at Rs. 106,26,80,655/-hence the amount of Rs. 105,06,70,665/- has to be added back to book profits u/s 115JB (Rs. 1,20,09,990/- having been added back already in book pr....
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.... was reopened after a period of four years from the end of AY. There was nothing to indicate in the reason to re-open on which assessment has been re-opened or there is a failure on the part of assessee to disclose fully and truly all the material facts necessary for the assessment. The objection of assessee was rejected. And order of re-assessment dated 05.09.2011 passed u/s. 143(3) r.w. section 147 of the Act, wherein AO made disallowance u/s. 14A, 40(a)(ia) of the Act and levied interest of Rs. 58,94,437/- u/s. 234D of the Act. 6. The assessee filed appeal before the CIT(A) challenging the validity of re-opening and other addition/disallowance u/s.14A and disallowance u/s. 40(a)(ia) of the Act. The CIT(A) after hearing the submission ....
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....ally held in para 4.3.1 of its order that AO re-opened the assessment u/s. 147 of the Act, 1961 on receipt of specific information from AO at Surat vide letter dated 10.03.2010 that assessee had paid a sum of Rs. 23,94,249/- as MICR charges to SBI MICR Centre without deduction of TDS u/s 194J of IT. Act, 1961. Hence, Assessing Officer had reasons to believe that there was a failure on the part of assessee to add back a sum of Rs. 23,94,249/- u/s 40(a)(ia) of I.T. Act, 1961. Another reason for reopening the assessment was that CIT(A) had decided assessee's appeal vide order dated 31/03/2009 and concluded in the order that in view of assessee's claim for exemption of dividend income u/s 10(34) of IT. Act, 1961, expenses of Rs. 106,26,....
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....ble jurisdictional High Court held: "He must disclosed in his reason as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that AY, so as to establish the vital link in this safeguard against the arbitrary re-opening of the concluded assessment" 10. In Titanor Components Ltd. Vs. ACIT, reported vide 343 ITR 18, Hon'ble jurisdictional High Court categorically held "that the Power conferred by s. 147 does not provide a fresh opportunity to the AO to correct an incorrect assessment unless the mistake in the assessment so made is the result of a failure of the assessee to disclose fully and truly all material facts necessary for assessment-Where the AO does not record tha....
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....n which was however not offered to tax. Exfacie, this reason is contrary to the record. This is not a fact which has subsequently come to notice but is something which was within the knowledge of the AO". 11. The 2nd Proviso of section 147 specially referred in respect of those cases including financial interest which are located outside in India, chargeable to tax and escaped assessment for any AY. However, the 1st Proviso attached with section clearly cast a duty mandate on the AO to find out if the particular word disclosed fully and truly necessary for his assessment for that AY, the reasons recorded by the AO "the words absolutely missing in para-4 & 5 of the reasons recorded that as to which fact or material was not disclosed by th....