TaxTMI 
TaxTMI 
2022 (1) TMI 1049
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....f appeal that the assessee has raised identically worded grounds in both the years regarding applicability of proviso to section 147 of the Act, to the assessee's case and the relevant ground raised in ITA No.780/Chny/2001 for the assessment year 1990-91 reads as under:- 1.4 The learned CIT(A) failed to appreciate that the appellant had filed detailed statement of reconciliation of interest realized on securities, loss on revaluation of securities and computation of profits u/s 115JA along with return of income and also at the time of assessment, disclosing all material facts necessary for the assessment and hence there is no question of any income chargeable to tax having escaped assessment. 4. Briefly stated facts are that, in both the appeals matter travelled upto Hon'ble Madras High Court and the Hon'ble Madras High Court in TCA Nos.478 & 479 of 2019, order dated 13.10.2020 restored the matter back to the file of the Tribunal by giving following directions:- 5. As noticed above, the assessee has specifically raised a plea regarding the validity of the reopening. Infact, the assessee being a Nationalized Bank, does not stand to gain by not raising such a plea, especially wh....
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....d that the assessee cannot follow one method in accounts and another for tax purposes. In this way, the claim of depreciation amounting to Rs. 14,89,42,190/- cannot be sustained in the eye of law. In this way, I have reason to believe that income chargeable to tax has escaped in respect of the aforesaid line." Similar are the reasons recorded for assessment year 1991-92. 5.1 Accordingly, in view of the above reasons assessments were reopened for assessment years 1990-91 & 1991-92 by issuing notices u/s.148 of the Act, both dated 04.03.1997. Consequent to receipt of notice, assessee objected to reopening of assessment vide letters dated 31.03.1997 but the AO has not disposed off the objections but framed reassessment vide order dated 22.12.1998 u/s.143(3) r.w.s 147 of the Act. Aggrieved assessee preferred an appeal before the CIT(A). The assessee raised this issue before CIT(A) and CIT(A) dismissed this ground by observing in Para 2.1 as under:- "2.1 I have considered the submissions made. It appears that no such plea had been taken by the appellant before the Assessing Officer while filing return in response to notice issued u/s 148. Moreover the provisions of Sec.147 have unde....
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....sessee bank has reduced the interest credited from the interest on securities for the assessment year 1989-90 as interest accrued but not received. According to AO the interest on securities admitted on cash basis for an amount of Rs. 29,89,43,379/- should have been offered for tax in assessment year 1990-91 on receipt basis. Similarly, the claim of notional loss of depreciation on investments to the extent of Rs. 14,89,42,190/- was computed by valuing the closing stock on the basis of cost whereas it should have been valued on the basis of market value or cost price whichever is less. But in the present case before us, assessment was framed by the AO u/s.143(3) of the Act and all these details were available before the AO during the original assessment proceedings. The AR particularly took us through the 'Memo of income adjusted for income tax purposes' and drew our attention to Page 57 of assessee's paperbook, where depreciation (loss on revaluation) of investments and interest on investments on Government and other securities accrued but not received is disclosed. Further in notes to computation of income, which is given at page 58 of assessee's paperbook vide para 4, the follow....
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....tice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this Section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under Sub-section (3) of Section 143 or this Section has been made for the relevant assessment year, no action shall be taken under this Section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under Section 139 or in response to a notice issued under Sub-section (1) of Section 142 or Section 148 or to disclose fully and truly all material facts necessary for his assessment for that assessment year." 16. This new Section has made a radical departure from the original Section 147 inasmuch as clauses (a) and (b) of the original Section 147 have been deleted and a new proviso added to Section 147. 17. In Rakesh Aggarwal v. Asst. CIT (1997] 225 ITR 496, the Delhi High Cou....