TaxTMI 
TaxTMI 
2022 (3) TMI 723
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....itiated by the A.O.? 3. Whether on the facts and in the circumstances of the case and in law the Ld.CIT(A) is justified in not appreciating that the notice u/s 148 has been rightly issued before completion of 06 years from the end of the relevant assessment year? 2. Brief facts of the case are that the assessee is a company filed its return of income dated 27.11.2003 by showing total income of Rs. 56,59,85,744/- for the A.Y. 2003-04. The return was processed u/s.143(1) of the Act, and later on the case was selected for scrutiny and the assessment was completed under section 143(3) of the Act by assessing income at Rs. 63,67,31,543/-. The Assessing Officer(AO) initiated the reopening proceedings by issuing notice under section 148 of the Act on 26.03.2010. The assesses see company vide letter dated 19.04.2010 requested to consider original return of income filed on 11.07.2003 as the return of income filed in pursuance of notice under section 148 of the Act. The appellant asked the AO to provide the reasons recorded. Vide letter dated 12.05.2010, the reasons recorded for reopening were provided to the appellant company. The re-assessment order under section 147 r.w.s 143(....
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....aper book filed have been perused. It is seen from the report issued u/s 80HGHC by the C.A. i.e. Form No.10CCAC, at item no.18 of the report, the components of the turnover of the business and the profits of the business adopted for deduction u/s 80HHC are mentioned. In the profits of the business, the items whose 90% value deducted from the profits are clearly mentioned therein and they include commission, interest received, sale of scrap assets, commission from travel agent and incentive from brokers. For the purpose of turnover of the business, the following items have been considered namely goods and jobs, services, scrap sale, finance income for lease and hire charges and lease rentals and this fact is clearly mentioned in the report along with the values/figures. In view of this, it has to be held that the appellant has disclosed all the facts fully and truly necessary for the assessment. At para no.147 of the assessment order passed u/s 143(3) on 20/3/2006, the AO has clearly dealt with the 80HHC deduction. In that para, the AO has deducted the finance income from the eligible profits of the business for the purpose of 80HHC deduction. It is also seen that the AO ha....
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....to believe that income has escaped assessment within the meaning of Sec. 147 of the Income tax Act, 1961. Issued a notice u/s.148 of the Income tax Act, 1961. 5. The notice u/s.148 is issued with approval of the CITIV, Pune vide letter No.Pn/CIT-V/147/2009-10/3909 dated 17.03.2010 ." 6. Before us, the ld.Departmental Representative(ld.DR) submitted that the ld.CIT(A) has erred in deciding that the notice under section 148 is bad in law. The ld.DR for the Revenue has accepted that the notice under section 148 has been issued after 04(four) years after the original assessment.The ld.DR submitted that as per the provision of section 147 in a case where there is failure on the part of the assessee to disclose fully and truly the particulars of income the case can be reopened u/s 147 with the prior approval of the CIT not later than completion of 06 years from the end of the relevant assessment year. In the present case the time-barring date for issue of 148 notice is 31.03.2010 i.e. six years from the end of the relevant A.Y. 2003-04. Hence the reopening of assessment has been done within the prescribed time limit as laid down in section 147. Hence the decision of Ld.CIT(A)....
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....eration. Now, the material on record discloses that assessee had furnished with its return of income, the details of computation of income, the adjustment made to the returned income on account of 'impact on financial activity', the claim for deduction under s. 80HHC, details of the total turnover computed for the purposes of s. 80HHC, details of "the profits of the business" computed for the purposes of s. 80HHC by applying Expln, (baa) thereof, and the entire factual aspect was furnished in the manner prescribed in law i.e. by way of a report of a chartered accountant contained in Form No. 10CCAC. The aforesaid material, in our opinion, clearly depicted the manner in which "theprofits of the business" were computed for the purposes of s. 80HHC of the Act by applying Expln, (baa) thereof. In fact, with respect to the income on account of 'impact on financial activity', the AO duly applied his mind to the issue when he passed the order of assessment under s. 143(3) of the Act on 28th Dec, 2006. We say so for the reason that in the last part of para 17(b) of the assessment order he has specifically noted the income credited to the P&L a/c on account of finance income....
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....sessee, in terms of the judgment of the Hon'ble Bombay High Court in the case of Prashant Projects Ltd. v. Asstt. CITf20111 333 ITR 368/9 taxmann.com 237/201 Taxman 158 (Mag.) (Bom.) as also the judgment in the case of Titanor Component Ltd. {supra), the initiation of proceedings under s. 147 of the Act is liable to be set aside. We hold so. 15. Before parting, we may refer to the judgment of the Hon'ble Bombay High Court in the case of Indian Hume Pipe Co. Ltd. v. Asstt. CIT1~20121 348 ITR 439/204 Taxman 347/16 taxmann.com 190 which has been relied upon by the CIT(A) and the. Revenue before us to support the initiation of proceedings under s. 147 of the Act. In the case before the Hon'ble High Court, issue related to reopening of assessment after the end of four years from the relevant assessment year and the original assessment was made under s, 143(3) of the Act. The claim made by the assessee was that initiation was bad in law because it had disclosed fully and truly all material facts necessary for assessment and therefore, the initiation of proceedings was bad in view of the same being non-compliant with the first proviso to s. 147 of the Act. Th....