TaxTMI 
TaxTMI 
2020 (12) TMI 1031
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....any which is stated to be engaged in Real Estate Development and Project Management Consultancy Services. Assessee filed its return of income for Assessment Year 2006-07 on 06.12.2006 declaring loss of Rs. 4,70,809/-. The case was selected for scrutiny and initially the assessment was framed under section 143(3) vide order dated 30.12.2008 and the returned loss was accepted. Subsequently, the case was reopened under section 147 and notice under section 148 was issued and in response to which assessee vide letter dated 12.04.2013 submitted that the original return filed by it on 06.12.2006 be treated as return of income in response to notice under section 148 of the Act. Thereafter, the case was taken up for scrutiny and consequently the ass....
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.... The Learned Assessing officer has erred in law while initiating proceedings u/s 147 parallelly when the proceedings u/s 154 were pending on the same issue and were not concluded. 3. The Learned Assessing officer has erred in Law and on the facts of the case in making an addition of Rs. 19,22,905/- was made on account of prior period expenditure/ reversal of consultancy fee. - 4. The Ld. CIT(A) has erred in observing as under and by upholding the additions made by Ld. AO in impugned order:- a) Appellant could not explain why the work was not completed even in earlier years, but the appellant showed the entire revenue as his income. b) Appellant failed to show that accounting standard 7 is applicable in hi....
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....hat was allowed to it was not allowable as expenses. He submitted that the reasons recorded itself shows that the reopening that has been initiated is on account of change of opinion as the claim of prior period expenditure is evident from the fact that after examination of the facts, the claim was allowed by the AO in the assessment order framed under section 143(3) of the Act. He further submitted that during the course of original assessment proceedings, on a query of the AO with respect to the amount of Rs. 19,22,905/-, it was submitted by the assessee that it was reversal of consulting income as the project against which it was not received was not completed and the details of which were furnished before the AO and in support of which ....
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....147/148 of the Act. It is only on the Assessing Officer strictly satisfying the provisions of Section 147 of the Act that he acquires jurisdiction to re-open an assessment. Section 147 of the Act, clothes the Assessing Officer with jurisdiction to reopen an assessment on satisfaction of the following: (a) The Assessing Officer must have reason to believe that (b) Income chargeable to tax has escaped the assessment and (c) In cases where the assessment sought to be reopened is beyond the period of four years from the end of the relevant assessment year, then an additional condition is to be satisfied viz: there must be failure on the part of the Assessee to fully and truly disclose all material facts necessary for assessment. Insofar the pre....