TaxTMI 
TaxTMI 
2020 (11) TMI 343
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....her on the facts and in the circumstances of the case the Tribunal was justified in law in placing reliance on its own order in the case of DHFL Vysya Housing Finance P Ltd., (DVHF) ITA NO.1416/Bang/2010 for AY 96-97 dated 11-01-2013 and holding that the reopening u/s. 147 is bad in law without appreciating the fact that the department has not accepted the relied upon decision and the same has also been challenged before this Hon'ble High Court of Karnataka in ITA NO.244/2013? 2. Facts leading to filing of this appeal briefly stated are that the assessee is engaged in the business of conducting chits. The assessee on its own, bids at the auction. When the assessee succeeds in the bid, the difference between the value of chit and the amount at which the assessee bids at the auction is booked as a loss. The remaining tenure of the chit in respect of the assessee bids at the auction is booked as a loss. The assessee books the loss and spreads it over to the remaining period of the chit group. In the books of the accounts of the assessee, only the loss is apportioned for the period relevant to the Previous Year. For the Assessment Year 2008-09, the assessee claimed loss on bidding....
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....re were lapses on the part of the assessee in claiming the same amount twice resulting in increase of loss and to that effect, the income had escaped assessment. It is also urged that the bid loss claimed by the assessee pertains to the period beyond the accounting period relevant to the Assessment Year under consideration and the same was rightly denied by the assessing authority in the absence of material evidence. It is also urged that the tribunal has not independently examined whether the reasoning assigned by the Assessing Officer was in accordance with Section 147 of the Act, therefore, the matter is required to be remanded to the tribunal for consideration afresh. It is also urged that the decision, on which reliance was placed by the assessing authority in the case of DHFL VYSYA HOUSING FINANCE LTD. VS. ACIT has been quashed by a bench of this court in I.T.A.No.244/2013 vide judgment dated 23.09.2013. 4. On the other hand, learned counsel for the assessee submitted that the Assessing Officer has not recorded any finding that the assessee has failed to disclose fully and truly all material facts necessary for assessment as pointed out by the tribunal in paragraph 13 and 17....
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.... response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: 6. It is not in dispute that an assessment can be reopened by issuance of notice under Section 148 of the Act only on fulfillment of the conditions mentioned in Section 147 of the Act. The Assessing Officer has recorded the reason, which reads as under: On perusal of accounts enclosed to the return filed and statement of computation of income, it was observed that loss on own bidding i.e., bid loss amounting to Rs. 7,20,32,155/- was debited to P & L Account and Rs. 7,14,76,102/- was separately claimed in the statement of computation income filed along with return of income. The AO in the page 9 of the assessment order dated 28.02.2006 added back Rs. 7,14,76,102/- whereas it is observed that an amount of Rs. 7,20,32,155/- has been added back while computing the income in the assessment order dated 28.02.2006. But, in its submissions, before the CIT(A), the assessee submitted that both the figures are same and by mistake they were shown as separate. In other words, it is understood that the same a....
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....believe that the mistake in computation of income has resulted in escapement of income from assessment to the extent to the extent of Rs. 7,1476,103 (bid loss) and Rs. 20,632/- (income from House Property omitted to be included." However, the tribunal in paragraph 13 has held as under: We have considered the rival submissions. From a perusal of the reasons recorded by the AO before issuing notice under Section 148 of the Act, it is clear that the AO ha not, in the reasons recorded, made an allegation that income chargeable to tax has escaped assessment by reason of the assessee's failure to disclose fully and truly all material facts necessary for his assessment for the relevant Assessment Year. It is not in dispute that for A.Y. 1996-97, an assessment under Section 143(3) had already been made in the case of the assessee by an order of assessment dated 31.03.1998. Admittedly, notice under Section 148 of the Act was issued on 17.03.2003 which is beyond the period of four years from the end of the relevant Assessment Year (1996-97). The proviso to Section 147 was therefore clearly attracted. It is clear from the decision of the Hon'ble Bombay High Court as well as the Ho....