TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 488
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....ear 2004-05. By the said notice, assessment is sought to be reopened on the allegation that income of petitioner for Assessment Year 2004-05 has escaped assessment. According to petitioner, the notice is without jurisdiction inasmuch as the same has been issued without formation of a valid belief that the income of petitioner has escaped assessment for the assessment year 2004-05, since the issues raised have been the subject matter of consideration while framing the original assessment. Therefore, reopening is sought on the basis of change of opinion relying on the same set of material. 2. Mr.Pardiwalla also submitted that it is quite obvious from the reasons for reopening recorded by a jurisdictional Assessing Officer that there has been....
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....nd Loss Account for the year 31st March 2004. Such expenses amounting to Rs. 293.34 lakhs incurred during the year were debited to natural heads of account under the Profit and Loss Account for the year under review. Petitioner in its return on income for the assessment year under review had claimed 'store launch expenses' actually incurred during the year of Rs. 293.24 lakhs as 'revenue expenditure' and also added back Rs. 186.23 lakhs of such amortized expenses of earlier years under its 'Computation of Business Income'. The JAO has now sought to reopen the assessment under section 148 of the Act in order to disallow the above deduction in respect of 'store launch expenses' incurred on the ground that its in the nature of 'capital expendi....
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....ection 148 of the Act. It is quite obvious that the reopening is based on the material which was already on record at the time of passing the assessment order under Section 143 of the Act. Once, the Assessment Officer, on consideration of the material on record, and the explanation offered, arrived at a final conclusion that the assessee is entitled to the deduction as claimed, then on the basis of the very same material, the Assessing Officer cannot form a prima-facie opinion that the deduction is not allowable and, accordingly, reopen the assessment on the ground that income chargeable to tax has escaped assessment. A Division Bench of this Court in Cartini India Limited, (Formerly Godrej Appliances Ltd. Vs. Additional Commissioner of Inc....
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....n Cartini must apply to the facts of a case such as the present. The assessee had during the course of the assessment proceedings made a complete disclosure of material facts. The Assessing Officer had called for a disclosure on which a specific disclosure on the issue in question was made. In such a case, it cannot be postulated that the condition precedent to the reopening of an assessment beyond a period of four years has been fulfilled." 9. The facts of this case that the claim for deduction of 'store launch expenses' are almost similar to that of Cartini India Limited (Supra), where 'project launch expenses' were claimed by petitioner as 'revenue expenses' even though in its books of accounts, the petitioner had shown the expenditure ....