2021 (12) TMI 399

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s engaged in the business of network design, management, communication, connectivity services and related products. For the assessment year 2004-05, they have filed their return of income on 30.10.2004 declaring an income of Rs. 29,30,15,180/-, but the income was assessed at Rs. 32,15,72,740/- by order dated 28.12.2006. Subsequently, the matter travelled to the ld. CIT(A) and the Tribunal. The Tribunal, holding that the ld. Assessing Officer has to assess the real income of the taxpayer and since the issue had not been adjudicated either by the ld. Assessing Officer or by the ld. CIT(A), remanded the matter to the file of the ld. Assessing Officer. Case of the assessee is that even thereafter, ld. Assessing Officer failed to consider the ma....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....terest U/s. 220(2) can be charged pursuant to the original demand notice. The necessary corollary of this position will be that even when the assessment is reframed, interest can be charged only after the expiry of 30 days from the date of service of demand notice pursuant to such fresh assessment order. Learned CIT(A) also followed the decision of Mumbai Bench of Tribunal in Addl. CIT vs. Hindalco Industries Ltd., 4 SOT 757, where it was held that on set aside of assessment, operation of original assessment order stands withdrawn and the demand notice issued pursuant to such assessment order becomes inoperative and stands extinguished; and therefore, in a case where the assessment was set aside, interest u/s. 220(2) has to be charged only ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent year 2004-05. 9. Another amount of Rs. 1,57,745/- pertains to the repairs and maintenance incurred by the assessee in the previous year relevant to assessment year 2004-05 and therefore, it is admissible in the assessment year 2004-05. Assessee placed reliance on the decision of Hon'ble Apex Court in the case of Kedarnath Jute Manufacturing Co. Ltd. Vs. CIT, 82 ITR 363 in support of his contention that the assessable profits of a business must be the real profits and they have to be ascertained on ordinary principles of trading and commercial accounting; and that where the assessee is under a liability or is bound to make a certain payment from the gross profits, the profits and gains can only be the net amount after the said liability....