TaxTMI 
TaxTMI 
2022 (2) TMI 1093
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.... recognised only when it is actually realised. In compliance with said requirement petitioner recognised income of NPA only when it is actually realised. The said income accordingly was not offered to tax in the return of income on accrual basis but is offered to tax on actual receipt basis. Petitioner stated that in its Annual Report of previous year ending 31st March, 2013 relevant to the Assessment Year 2013-14, this fact was specifically disclosed in the significant account policies. Petitioner also states that in the tax audit report it is also stated that interest and other charges due Rs. 25,66,54,010/- on Non-Performing Assets are not credited to statement of Profit and Loss Account pursuant to RBI directions. 2. Petitioner's case was selected for scrutiny and during the course of assessment proceedings, petitioner received a notice dated 7th August, 2015 under Section 142(1) of the Income Tax Act, 1961 (the Act) calling upon petitioner to furnish various details. In reply, petitioner, by a letter dated 20th August, 2015, submitted copies of return of income, computation of income, annual report, financial statements including schedules and notes to accounts and tax audi....
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.... ITR 244 (SC). Apart from these, various other judgments have also been cited in support of petitioner's case that notice under Section 148 of the Act should not have been issued. 4. In the order passed on 17th December, 2021, rejecting the objections the Assessing Officer has not dealt with all these points. The Assessing Officer was duty bound to deal with all the submissions made by petitioner in its objections and not just brush aside uncomfortable objections under the carpet. We have to note that petitioner had, with the objections, also requested the Assessing Officer to provide photocopies of documents evidencing request sent by the Assessing Officer to the Principal Chief Commissioner of Income Tax/Chief Commissioner/Principal Commissioner/ Commissioner in terms of Section 151(1) of the Act for obtaining an approval for re-opening of the assessment for the year under consideration and documents evidencing the approval received from the Principal Chief Commissioner of Income Tax/Chief Commissioner/Principal Commissioner/ Commissioner. The Assessing Officer instead of providing these documents simply dismissed petitioner's request by saying it is purely an administrativ....
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....assessment beyond what has already been disclosed. 5. Therefore, the order dated 17th December, 2021 impugned in this petition is quashed and set aside. The matter is remanded for denovo consideration. The concerned officer shall keep in mind that the exercise of considering the assessee's objections to the re-opening of assessment is not a mechanical ritual but a quasi judicial function. The order disposing of the objections should deal with each objection and give proper reasons for the conclusion. He shall also grant a personal hearing to petitioner and the notice of personal hearing shall be communicated atleast seven working days in advance. If the said officer is relying on any judgment or order of any Court or Tribunal, a list thereof shall be provided to petitioner alongwith notice of personal hearing so that petitioner will be able to deal with or distinguish these judgments/orders in the personal hearing. The Assessing Officer shall deal with all previous submissions while considering the assessee's objections, deal with each objections and give proper reasons for its conclusion. 6. Before we part with the case, we would like to observe that on a routine basi....
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....be granted. (e) If the Assessing Officer is going to rely on any judgment/order of any Tribunal or Court reference/ citation of these judgment/orders shall be provided alongwith notice for personal hearing so that the assessee will be able to deal with/distinguish these judgments/ orders. 9. A copy of this order be placed before the members of the Central Board of Direct Taxes who shall issue guidelines to all its officers based on the directions given above with clear instructions that they shall be strictly followed. We only hope that, this will reduce the same errors being repeated by the concerned revenue authorities and will not drive the assessee to rush to the court. Thereby, the burden on the court will also get reduced. 10. Petition accordingly disposed with no order as to costs. ============= Document 1 DEPARTMENT GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 1(3)(1), MUMBAI To. TATA CAPITAL FINANCIAL SERVICES LIMITED 11TH FLOOR, TOWER A PENINSULA BUSINESS PARK,GANPATRAO KADAM MARG LOWER PAREL MUMBAI 400013,Maharashtra India PAN: A....
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....assessment are satisfied. 5. In view of the above, I have reason to believe that income chargeable to tax to the tune of Rs. 25,66,54,010/- has escaped within the meaning of section 147 of the Act for the A.Y. 2013-14. It is therefore proposed to issue notice u/s. 148 of the Income Tax Act for A.Y. 2013-14 to reassess such income and also any other income chargeable to tax which has escaped assessment and which may come to notice subsequently in the course of proceedings under this section. SAKSHI KALRA CIRCLE 1(3)(1), MUMBAI (In case the document is digitally signed please refer Digital Signature at the bottom of the page) Document 3 ANNEXURE In the above mentioned case, the assessee e-filed its return of income of A.Y.2013-14 on 30.11.2013 declaring total income of Rs. 503,83,37,500/-. Subsequently, the assessee company filed revised its return on 31.03.2015 declaring total income at Rs.502,89,39,320/-. The case was selected for scrutiny and assessment u/s 143(3) of the Act was completed on 08.03.2016 assessing total income under the regular provision of the Act at Rs. 528,49,86,040/- and Book Profit u/s. 115JB of the Act at Rs.54....