2020 (5) TMI 91

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....as "the Tribunal") in ITA No.2637/Ahd/2014 for assessment year 2006-07 by proposing the following two questions stated to be substantial questions of law:- "[A] Whether the Appellate Tribunal has erred in law and on facts in holding that the reopening of assessment u/s 147 was not justified and requires to be quashed? [B] Whether the Appellate Tribunal has erred in law and on facts in holding that the question of treating the amount of Rs. 159.46 Cr credited directly to Capital reserve account without crediting to the P & L account as cessation of liability u/s 41(1) of the Act, which was not dealt with in the original assessment proceedings does not constitute "information" within the meaning of Section 147(b) of the Act?" 2. The asse....

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.... to lay his hands on any new information and has only re-appreciated the information already possessed by him and considered in the scrutiny assessment and that there is no allegation against the assessee of withholding any information. Reference was made to Explanation 1 to section 147 of the Act, which provides that production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso. It was submitted that therefore, merely because the Assessing Officer has placed reliance upon the record of the case and his belief that income chargeable to tax has ....

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.... in principal outstanding of loan liabilities. The transaction between the Corporation and SIDBI and other banks are of the nature of loan transaction. These transactions are therefore on Capital Account. The waiver or remission of the liabilities towards loan is therefore of Capital Receipt and hence Corporation has therefore credited these amounts to Capital Reserve. The details of the principal loan amounts waived by SIDBI and other banks are given in Annexure-B." 8. Thus, it is evident that the issue proposed vide question [B] had been scrutinized at the time of the original scrutiny assessment under section 143(3) of the Act. Subsequently, the Assessing Officer has reopened the assessment to examine the very same issue, which has al....