TaxTMI 
TaxTMI 
2021 (2) TMI 99
X X X X Extracts X X X X
X X X X Extracts X X X X
....The CIT-A erred in holding that reopening is valid which is reopened beyond 4 years after completion of original assessment U/s 143(3), without recording in the reasons for reopening that there was failure on the part of the appellant to disclose truly fully all materials facts necessary for assessment is not correct. 3. The order of CIT-A holding that reopening is valid based on the same facts which already available in record and no new material has come in possession after completion of assessment u/s 143(3). 4. The order of CIT-A in not following CBDT instructions No-1425, dt.i6.i.3.98 with respect to hire charges which includes interest payable does not come under purview of interest u/s 2(28A) of the I.T. Act for con....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oncluded on 30/12/2011 accepting the returned income. Subsequently, the assessment was reopened by issuing notice under section 148 of the Act on 09/10/2014. Further, notice under section 129 of the Act dated 10/12/2014 was also issued along with notice under section 142(1) of the Act. Assessee through his authorised representative filed letter dated 18/02/2015 on 19/02/2015, wherein it was mentioned that assessee is in the business of C&F Agency for cement companies like M/s India Cement India Ltd., and M/s. Zuari Cements Ltd. Ld. AO noted that, as per provisions of section 194A of the Act, assessee was required to deduct TDS for payment of interest on nonbanking financial companies, and hence disallowance of interest payment as per provis....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of 4 years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment by reason of failure on part of the assessee to disclose fully and truly all material facts necessary for assessment. He placed reliance on following decision: * PCIT vs L&T reported in (2020) 113 taxmann.com 47, which is upheld by Hon'ble Supreme Court by dismissing the SLP filed by revenue in PCIT vs L&T Ltd., reported in (2020) 268 taxman 390. * Decision of Hon'ble Karnataka High Court in case of CIT vs Chaitanya Properties Pvt. Ltd., in ITA No. 205/2016 by order dated 16/02/2016 7. On the contrary, the Ld.Sr.DR submitted that, the case was referred for limited scrutiny, and therefore the issues that w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....quires to be disallowed ii/s 40(a)(ia) of IT Act. The assessee is a proprietor of business concerns namely M/s. Srinivasa Enterprises (C&F agents of India Cements), Ushodaya sales corporation (Cement Trading) and Srinivasa- Transports (Transportation activity). These business concerns are interlinked. Therefore, the assessee has used trucks/lorries to his own business. He has not rendered trucks/lorries for hiring business during the year. Instead he has used these vehicles for his own business purpose. But, he has claimed depreciation 30% on these vehicles. As per Income Tax Rules higher rate of depreciation i.e. 30% can be claimed for Motor Buses, Motor Lorries and motor taxis used in a business of running them on hire o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....CIT(A) deleted the addition of depreciation disallowed by the Ld.AO 14. At this juncture we place reliance on decision of Hon'ble Supreme Court in case of CIT vs Kelvinator of India Ltd., reported in (2010) 320 ITR 561 wherein Hon'ble court held initiation of reassessment proceedings to be not proper, when no tangible material came to the possession of the Ld.AO. Hon'ble Karnataka High Court in case of CIT vs Hardware Trading & Co. reported in 248 ITR 673 has followed the said ratio of Hon'ble Supreme Court in case of CIT vs Kelvinator of India Ltd (supra). Before us, Ld. A.R. placed reliance on decision of Hon'ble Karnataka High Court in case of Infosys Ltd vs DCIT reported in (2019) 416 ITR 226, wherein Canteen of decisions of Hon'ble ....