TaxTMI 
TaxTMI 
2021 (2) TMI 731
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.... the facts and circumstances of the case, though the tax effect is below the monetary limit prescribed vide Board's Circular No.17/2019 dated 8.8.2019, the case is covered under the exclusions to the monetary limits provided under Para 10(c) of the CBDT Circular No.3/2018 and hence this issue may be decided on merits. 3. The learned CIT(A) erred in holding that the assessment made u/s 147 r.w.s. 143(3) of the Act is not legally sustainable as the original assessment record itself shows that the assessee had claimed in letter dt.07.01.2013 that the gross profit rate was taken as 20% for all the years despite the fact that for the year under consideration, it was taken as 61.39% only, and thus, the assessee has failed to disclose all....
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....atement of work-in-progress of Rs. 87,94,203 as additional income and concluded the assessment u/s 143(3) r.w.s. 147 of the I.T.Act. 4. Aggrieved by the reassessment order dated 31.12.2017, the assessee preferred an appeal to the first appellate authority. Before the first appellate authority, the assessee contended that the reopening is beyond four years period and assessee had made full and true disclosure at the time of original assessment, hence, the reopening of assessment is bad in law. On merits, it was stated that for the relevant assessment year, actual net profit declared by the assessee is 18.14%, and therefore, the gross profit could not be 16.39% as alleged by the A.O. The CIT(A) decided the reopening of assessment as well a....
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....he sales. (ii) Ledger extracts of purchases accounts. (iii) Details of sub-contract charges party wise and TDS particulars. (iv) Break up of commission paid and TDS particulars. (v) Details of land compensation expenses and submit a brief note on context and necessity of paying the land compensation. (vi) TDS particulars in respect of other expenses debited to P&L account. 6.2 In reply to the above notices issued by the A.O., the assessee had filed written submissions on 07.01.2013 explaining the nature of business of the assessee, the accounting procedure adopted, the details of the purchases, sub-contract charges paid, TDS details and details of various other expenses. Pursuant to the assess....
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...."reason to believe cannot be change of opinion"; and (ii) AO is barred from taking any action under this section after the expiry of four years from the end of the relevant Assessment Year in the following cases: (a) Where an assessment under section 143(3) or 147 has already been concluded for the relevant assessment year; and (b) There is no failure from the part of the assessee to: Make a return under section 139 Response to notice under section 148 Disclose fully and truly all material facts necessary for the assessment.6.4 6.4 The Hon'ble Apex Court in the case of New Delhi Television v. DCIT [(2020) 116 taxmann.com 151 (SC)] had held that reopening of the assessment beyond four ....
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....ssee's failure to disclose any material facts in the reasons recorded is a legal requirement. The relevant finding of the Hon'ble High Court is as under:- "The Assessing Officer ought to have examined the question as to whether there were reasons for him to believe that the escapement was due to the failure on the part of the petitioner to make true and full disclosure of the income or not. In the event of arriving at such a belief that it was because of the petitioner's failure, he should have recorded the same in the order. That is the legal requirement. Only if the twin conditions, as laid down by the Supreme Court, are satisfied by way of recording reasons for both the conditions in the order, the Assessing Officer will get jur....
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....rom the assessment record that these documents were also filed during the original assessment proceedings. Total sales as per P&L account for Assessment Year 2009-10 is shown at Rs. 24,34,79,700/-, the WIP is shown at Rs. 1,64,34,883/- and the Net profit is shown at Rs. 44,164,756/-. Thus, the net profit works out to 18.13% of sales for the year. Therefore, the observation of the AO that the gross profit for the year shown at 16.39% is not correct. In fact the net profit for the year is found to be better than the immediate preceding and succeeding year as under: A.Y. Net profit(%) 2009-10 12.15 2010-11 18.13 2011-12 12.67 6.3 As regards the observation of the AO that the assessee has explained taking gross ....