TaxTMI 
TaxTMI 
2015 (1) TMI 1451
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.... finding that the impugned order of re-assessment having been passed without service of any valid notice u/s 143(2) of the Act, the impugned order of re-assessment is without jurisdiction, bad in law and consequently, in not cancelling the said order of re-assessment. For that on facts and circumstances of the case, the ld. CIT(A) ought to have held that the order of re-assessment made by the ld. AO is barred by limitation and consequently bad in law and is liable to be cancelled.For that the ld. CIT(A) failed to appreciate the fact that re-opening of assessment in the instant case without satisfaction of the pre-requisite conditions, invalid and was not based on any definite, reliable and relevant material for the year under consideratio....
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....ore unsustainable and is liable to be cancelled and the ld. CIT(A) has erred in not holding so. (c) For that the ld. CIT(A) failed to appreciate the fact that ld. AO has added Rs. l,20,000/- as interest income of the year under consideration in a proceeding initiated u/s 147 of the Act without bringing on record any relevant material to show that any real income of such amount had actually accrued to the assessee during the relevant year or the assessee had actually received such amount at any time. The addition being made without discharging the burden which was on the ld. AO under law, the addition is bad in law and unsustainable. (d) For that on the facts and circumstances of the case, the addition of Rs. 1,20,000/- is being based me....
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....NTE). As per the agreement entered into with RNTE dated 22-12-1999, the RNTE shall pay simple interest @ 24% per annum; that Rs. 5 lakhs was outstanding and income from interest accrued had not been shown in the return which was required to be shown. The AO held that the assessee was not maintaining its account on mercantile system and that as per the provisions of sec. 145 of the Income Tax Act, the income had to be shown on accrual basis. Accordingly, notice u/s. 148 of the Act was issued to the assessee on 31-03-2009. In reply, the assessee stated that the original return filed should be treated as return filed on 18-10-2004 to be treated as return u/s 148 of the Act. During the course of assessment proceedings, the AO directed the asses....
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....e. 4. Before us, Ld. AR stated that the agreement entered into on 22-12-1999 had expired on 30-09-2002; that the assessee had not received any interest; that the amount in question was shown as bad debt in the P & L a/c for the year ended on 31-03-2008; that finally in the year 2008-09, the amount was written off. He relied on upon the order of the Hon'ble Delhi High Court in the case of CIT v. Eicher Ltd. [2010] 320 ITR 410/[2009] 185 Taxman 243. On the other hand, Ld. DR supported the order of the FAA. 5. We have heard the rival submissions and perused the record of the case. We find that the AO had made addition only because the assessee was following mercantile system of accounting. It is a fact that the assessee had not received ....