2022 (6) TMI 745

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....substantial question of laws were framed in TCA No.947 of 2019 before Hon'ble High Court: - 1. Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that reopening of assessment is valid? 2. Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that reopening of assessment is valid on the ground that the appeal of the assessee does not arise out of the reasons recorded for reopening ignoring the grounds of appeal taken before it? 3. Whether on the facts and in the circumstances of the case the Tribunal was right in confirming the order of the CIT(A) that the ground relating to estimated disallowance of deduction u/s. 80M does not arise out of the....

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.... decisions including that of Supreme Court and hence no amount should have been disallowed in computing the deduction u/s 80M. 2. Having heard rival submissions and after due consideration of material facts, our adjudication would be as given in succeeding paragraphs. The Ld. DR drew attention to paragraph-7 of TCA No.948 of 2019. This order arises out of ITA No.1991/Mds/02 wherein the matter has been remanded back by Hon'ble Court to the file of Tribunal. However, while remanding back, ITA No. has been mentioned as 782/Mds/2001 as against correct ITA No.1991/Mds/02. We find that the same is merely a typographical error and the same is to be ignored. 3. The assessee was assessed for AY 1992-93 u/s 143(3) on 13.03.1995 which was revised fr....

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....ds by observing that appeal of the assessee for both the years does not arise out of reasons recorded by Ld. AO. Therefore, the ground was dismissed. The issue, on merits, was partly allowed. The issue of interest on securities as well as loss on revaluation of investments was allowed whereas the issue of 80M was held to be not arising out of reassessment order. The other issues raised in the appeal were held as non-pressed. 6. This order was challenged by the assessee before Hon'ble High Court of Madras wherein the above two issues have been remanded back to the Tribunal for re-adjudication. The directions of Hon'ble Court have already been noted by us in the opening paragraphs. 7. The reasons recorded by Ld. AO to reopen the assessment ....

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....computation of income for AY 1992-93 (Page no. 72 to 78 of paper-book) reduced 'interest on investments in govt. & other securities accrued but not received' for Rs.1173.77 Lacs. The assessee also added a noted in the computation of income which read as under: - "The interest on securities which is offered to tax under the head "Business" consequent on the amendment to the Income-tax Act, 1961 is accounted and offered to tax under the head "Business". The cash basis of accounting is continued to be adopted for income-tax purposes as the same basis was adopted from the inception, instead of accrued basis. The cash basis of accounting is regularly followed, notwithstanding the change in the head of income, viz, from ``Interest on Securities....