TaxTMI 
TaxTMI 
2022 (10) TMI 1050
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....of the Assessment Year (AY) 2013-14, the petitioner filed a return of income that was selected for scrutiny. Notices were issued thereafter, calling for various particulars under notice dated 12.01.2016 issued under Section 142(1) of the Act, wherein point No.10 specifically sought details of school cost written off. 2. Vide reply dated 27.01.2016, the petitioner states as follows: Point No.10) details of school cost written off : Note enclosed Arun Excello group has started the Integrated Township Project at Vallanchery consisting of Residential construction, IT Park and Commercial activity. To meet the requirements of the Residents the Company has constructed the Vidya Mandir school. Those who own a flat in Estancia will be gi....
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...., the reasons of the officer, at paragraph 2, state as follows: 2. On verification of records, it is seen that the assessee had debited the following amounts towards "school cost written off" in the profit and loss accounts in respect of AY 12-13 to 14-15 as follows: Asst. Year Amount written off 2012-13 39807410 2013-14 13871054 2014-15 15444421 The assessee has started the integrated township at Guduvanchery consisting of residential construction, IT park and commercial activity. As seen from the records, it is ascertained by audit that the school Vidya Mandir was built by the assessee to meet the requirements of the residents. The school has been constructed at a total cost of Rs.20.96 crores. Th....
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.... facts, the provisions of clause (c) of explanations 2 to Section 147 are applicable to facts of this case and the assessment year under consideration is deemed to be a case where income chargeable to tax has escaped assessment. This case is within four years from the end of the assessment year under consideration. Hence necessary sanction to issue the notice u/e 148 has been obtained separately from Additional Commissioner of Income Tax as per the provisions of section 151 of the Act.' 7. Thus, the officer specifically records that there has been a debit of the school cost in the profit and loss accounts in respect of three years, i.e., A.Y. 2012-13, 2013-14 and 2014-15. Admittedly, no proceedings for re-assessment has been....
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....ving noticed the issue, raised a specific query, received a reply and thereafter passed an order of assessment, a clear opinion has formed by the Assessing Officer in regard to the vitality of the assessee's claim. In such an event, the impugned re-assessment proceedings are nothing but a review in the guise of re-assessment, which is impermissible in law. 12. I draw support in this regard from the celebrated decision of the Full Bench of the Delhi High Court in the case of Commissioner of Income Tax V. Kelvinator India Ltd. (256 ITR 1) that settles the proposition that re-assessment must be based on new and tangible material that has come to the note of the Assessing Authority after completion of the original assessment. 13. In t....