TaxTMI 
TaxTMI 
2021 (12) TMI 870
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....ground challenging validity of reassessment proceedings undertaken by AO on the basis of change of opinion not tenable under law. 2) Ld. CIT(A) erred in law and on facts in confirming disallowance by AO of Rs. 3,79,128/- interest expense incurred on loan funds obtained in earlier years while assessing income earned thereon ignoring direct nexus with borrowed funds. 3) Ld. CIT(A) erred in law and on facts to confirm disallowance of genuine interest expenses holding that there were neither loan funds nor current liabilities during the year ignoring documentary evidence. 4) Levy of interest u/s. 234A, 234B & 234C of the Act is unjustified. 5) Initiation of penalty proceedings u/s. 271(1)(c) of the Act is unj....
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....information within the meaning of Section 147 of the Act. Therefore, the Assessing Officer had the reason to believe and was satisfied that it is a fit case for reopening of the assessment. Accordingly, the reasons dated 09.11.2017 was recorded with the prior approval of the Range Additional Commissioner of Income Tax and the case was reopened by issuing notice under section 148 of the Act dated 22.08.2017. The reasons for reopening the assessment under Section 147 of the Act dated 09.11.2017 is reproduced herein below:- "No. ITO-Wd-3/AND/Reason/l 47/2016-17 Date: 09/11/2017 To, Shri Bharat Dhirajlal Shah HIMDIP, Nr. Radhakrishnan Statue, Opp. Brahmkumari, Sardar Gunj, Anand. ....
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....ted 31.08.2017 raised objection to the assessment proceedings which was disposed off vide order dated 23.10.2017. The assessee vide letter dated 02.11.2017 submitted copy of his return of income in response to the notice under section 148 of the Act on 06.11.2017 declaring return of income at Rs. 10,54,060/-. The reason for reopening the assessment was also sent to the assessee vide letter dated 09.11.2017. Notice under section 143(2) of the Act was issued on 13.12.2017. A notice under section 142(1) of the Act was issued on 13.12.2017 requesting the assessee to show cause as to why the assessee's claim of deduction under interest expenditure amounting to Rs. 3,79,128/- in the computation of business income be disallowed and added to th....
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.... of the decision of the Hon'ble Apex Court in case of CIT vs. Kelvinator of India Limited, 320 ITR 561 wherein it was held that even post the amendments in Section 147 of the Act w.e.f. 01.14.1989, the concept of change of opinion continuous to apply as long as certain claim made by the assessee was examined by the Assessing Officer, whether the Assessing Officer raised correct queries and came to the correct conclusion or not, in the context of reopening of assessment would be of no consequence. There is vital difference between a conclusion of the Assessing Officer after scrutiny which may appear to the Revenue to be erroneous and a situation where the Assessing Officer during the scrutiny assessment does not examine a particular clai....
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.... 9. We have heard both the parties and perused all the relevant materials available on record. The reopening in the present case has been done on the claim of interest expenses. The assessee in the original return of income has not mentioned the amount regarding loan funds. The Ld. AR pointed out page no.80 dated 26.06.2015 and there is no mention of loan fund before the earlier Assessing Officer. As regards notice under section 142(1) of the Act dated 09.10.2015, the Assessing Officer has specifically asked query that copy of the interest expenses and interest income during the year should be produced. The assessee vide letter dated 28.10.2015 has given the details regarding the interest income but the details lack the mention of loan fund....