TaxTMI 
TaxTMI 
2022 (4) TMI 899
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....essment on the same material being the provision for Bad and Doubtful debts which was considered for addition for assessment U/s 143(3), dt.30.10.2010 added under computation of income under normal provision of Income Tax and considered the same material for reopening U/s 147 of the I.T. Act 1961 is only change of opinion which is not permitted under the Income Tax Act 1961. The CIT-A erred in re-opening the assessment passed U/s 143(3) without bring on record any new material which has come to his possession for validity reopening the assessment. Hence, the reassessment is bad in law for want of requisite jurisdiction The CIT-A erred in confirming the addition which was passed without following the H'ble Supreme Court decision in G....
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.... AO after completing the assessment U/s 143(3) on 30.12.2010 had failed to record in the reasons for re-opening that there was failure on the part of the assesse to disclose truly and fully all the material facts necessary for the assessment. 2. The CIT (A) failed to appreciate that the appellant having the filed the return of income on 18.11.2008 the addition of provision for bad and doubt debts to the calculation of book profit in terms of clause (i) of the Explanation 1 to section 115JB of the I.T. Act being retrospective from 01.04.2009 clearly the said clause did not exist at the time of filing the return of income. 3. The CIT(A) erred in law and on facts in holding the re-opening of assessment U/s 147 as valid ignoring the fact th....
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....m in this behalf. There is a proviso attached to this clause which states that in a case referred to in sub-clause (ii) or sub-clause (iv), if the person signing the return holds a valid Power of Attorney from the individual to do so, then it shall be attached to the return. Thus it is noted that if due to one reason or the other individual cannot personally sign the return, then an option has been given to get it signed by a valid Power of Attorney holder and further such PoA should be attached to the return. Clause (b) of section 140 deals with the signing of the return of HUF. According to this clause the return shall be signed by the karta, and where the karta is absent from India or is mentally incapacitated from attending to his affai....
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.... Under this clause also there is no provision for the signing of the return by the holder of a valid Power of Attorney. Clause (e) states that in case of any other association, the return shall be signed and verified, by any member of the association or the principal officer thereof. 7. On going through various clauses of section 140, it is seen that whereas clauses (a) and (c) contain the provision for the signing of the return by a valid power of attorney holder, other clauses do not have such provision. Thus there is a clear line of demarcation between the classes of assessees, who, in certain circumstances, can get their returns signed and verified by the holder of valid PoA, in which case such PoA is required to be attached to the ret....
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....nal shall not rest its decision on any other ground unless the party who may be affected thereby has had a sufficient opportunity of being heard on that ground." [Emphasis supplied] 9. Further, section 253(6) of the Act states that the appeal to the appellate tribunal need to be filed in the prescribed form and it is also to be verified in the prescribed manner. Meanwhile Rule 47(1) of the I.T. Rules also clarifies that "appeal shall be signed by a person specified in sub-rule (3) of Rule 45. Rule 45(3) states that the form of appeal referred to subrule (1) to be verified by a person who is authorized to verified by the person who is authorised to verify the return of income under section 139(1) of the Act, as applicable to the assessee.....