2017 (11) TMI 1913

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....ved in those grounds that as to whether the CIT(A) was justified in holding the initiation of proceedings u/s.147 of the Act is bad in law, where the Assessing Officer has sufficient reason to believe that income chargeable to tax has escaped assessment. 3. The brief facts of the case are that the assessee is engaged in the business of works contract. It filed the return of income on 31.10.2006 showing total income of Rs. 4,98,010/-. Scrutiny assessment u/s.143(3) of the Act was completed on 28.4.2008 determining the total income at Rs. 7,71,810/- by making estimated disallowances of expenses under different heads. 4. Thereafter, the Assessing Officer found that the assessee has claimed transportation charges of Rs. 10,26,400/-. On verifi....

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....g transportation charges, hire charges and labour charges and reducing depreciation. 5. On appeal, the CIT(A) found that during the original assessment u/s. 143(3) of the Act, the Assessing Officer had verified particularly materials consumed, labour charges, transportation charges and postage and telephone charges and made some disallowance of expenditure claimed on such expenses, which are mentioned in the body of order. Therefore, the CIT(A) opined that although the details were before the Assessing Officer during the original assessment and after examining the same again reopened the assessment u/s.147 of the Act on the same accounts. The CIT(A) observed that in the case of the assessee for the assessment year 2005-06, in similar situa....

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....e orders of lower authorities and materials available on record. In the instant case, it is not in dispute that at the time of original assessment, the Assessing Officer verified the materials consumed, labour charges, transportation charges & postage and telephone charges and after examining the same made some disallowance on such expenses. Therefore, on the same set of facts, the Assessing Officer has changed his mind to reopen the assessment. It is also observed that in the body of the order u/s.143(3), the Assessing Officer had particularly mentioned that he had examined the details and after examining the details only, he had disallowed certain expenses from transportation charges, labour charges. We also find that in the assessment ye....