TaxTMI 
TaxTMI 
2021 (7) TMI 1239
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....09 .2014 emanating from the assessment orders both dated 25. 02. 2014 passed by the Assessing Officer (AO) under s. 143 (3) r. w.s. 147 of the Income Tax Act, 1961 (the Act) concerning assessment years 2006-07 & 2007- 08. ITA No. 399/RPR/2014 (Assessee's appeal) and ITA No. 380/RPR/2014 (Revenue's appeal) for A. Y. 2006-07 2. To begin with, we shall take up ITA No. 399/RPR/2014 filed by assessee and ITA No. 380/RPR/2014 filed by revenue concerning AY 2006- 07 for adjudication purposes. 3. The ground of appeal raised by the assessee are two folds; (i) challenging the legality of jurisdiction under s. 147 of the Act & (ii) challenging the action of the CIT(A) for re- adjudication of deduction of the provisions of leave encashment on ....
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....prove that reasons were recorded prior to issuance of notice under s. 148 of the Act. 4.2 Secondly, it was pointed out that notice for re-opening AY 2006-07 is dated 01. 03. 2013 in respect of assessment completed under s. 143(3) of the Act earlier. Consequently, the case of the assessee is also covered by the additional embargo placed by the first proviso to Section 147 of the Act. The learned counsel submitted that the assessment has been reopened without meeting the requirements of the 1st proviso to Section 147 of the Act. The learned counsel submitted that the assessment was earlier completed under s. 143(3) of the Act and notice for re-assessment has been issued after four years from the end of the relevant A.Y. 2006-07. Thus, t....
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....is not attracted to this extent. In the alternate, the leave encashment paid is required to be allowed on actual payment basis. 5. Learned CIT-DR for the Revenue, on the other hand, strongly defended the order of the AO on merits and claimed that jurisdiction assumed by the AO cannot be violated for the reasons recorded by the CIT(A). 6. The learned CIT-DR submitted that no proper examination of facts were carried out at the time of original assessment proceedings while accepting the claim made on account of provisions for leave encashment contrary to the position of law. The details in respect of actual payment of leave encashment were not made available to the AO and were provided only before the CIT(A). Therefore, the material fact....
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....der 1st Proviso to Section 147 of the Act in addition to shackles placed under main provisions thereof. In the aforesaid factual background, we perused the reasons recorded below. It will be apt to reproduce reasons recorded hereunder for easy reference:- "Reasons recorded u/s 148(2) of I. T. Act, 1961 for issue of notice u/s 148 of I. T. Act 1961 Perusal of the audited account reveals that assessee has claimed provisions for leave encashment amounting to Rs. 577. 92 lakhs for the year under consideration as admissible business expenditure. The provisions of section 43 B(f) in this regard speaks as under:- Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowab....
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....ar (268 ITR 332)(Bom) (c) Mercury Travels Limited . V/s. Dy. CIT(258 ITR 533)(Cal) (d) JSRS Udyog Limited & Ors .V/s ITO(313 ITR 321(Del) (e) Bombay Stock Exchange Ltd. V/s. DDIT(E)(361 ITR 160)(Bom) (f) Grindwell Norton Ltd v ACIT (2004) 267 ITR 673 (Bom) (g) Shriram Foundry v DCIT (2012) 350 ITR 115 (Bom) (h) Sound Casting Pvt. Ltd. v DCIT (2012) 250 CTR 119 (Bom) (i) Voltas Ltd v ACIT (2012) 70 DTR 433 (Bom) 7.2 2 We simultaneously notice that there is no averment to the effect as to what material facts necessary for assessment were not disclosed by the assessee in the course of original assessment proceedings fully as well as truly. The reasons being justiciable, the AO i....
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....peal) and ITA No. 381/RPR/2014 (Revenue's appeal) for A. Y. 2007-08 9. Now we advert to appeal of the assessee in ITA No. 400/ RPR/2014 as well as the appeal of the Revenue in ITA No. 381/RPR/2014 for A.Y. 2007- 08. 10. The assessee has raised similar grounds challenging the reopening of the assessment for A. Y. 2007-08 also. 11. It will be apt to reproduce reasons recorded hereunder for easy reference:- "Reasons recorded u/s 148(2) of I. T. Act, 1961 for issue of notice u/s 148 of I. T. Act 1961 Perusal of the audited account reveals that assessee has claimed provisions for leave encashment amounting to Rs. 1460. 59 lakhs for the year under consideration as admissible business expenditure. The provisions....