TaxTMI 
TaxTMI 
2023 (2) TMI 846
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....Kailash Dan Ratnoo, CIT DR ORDER PER ANUBHAV SHARMA, J. M.: 1. These are the appeals and cross objections arise of the orders even dated 25.03.2009, 26.03.2009 passed by CIT(A), for Assessment Years 1990-91 to 1993-94. ITA No. 2339/Del/2009 (A.Y.: 1990-91) and ITA No. 2355/Del/2009 (A.Y.: 1990-91) 2. Facts in brief of the case are that the assessee is a non-banking finance company (NBFC), carrying on business of running financial schemes and had filed its return for which original assessment was completed u/s 143(3) of the Act and subsequently revised u/s 154 of the Act. The assessment for AY 1990-91 was reopened vide notice issued u/s 148 of the Act on following grounds:- "i). the assessee company had kept throug....
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....itors for and on behalf of the assessee and, in return of the service rendered, receiving its dues. During the previous year, the agent collected Rs.4,95,84,387/- as 'service charges' from depositors but did not remit it to the assessee i.e. the amount was appropriated by the former. (ii). The assessee collected deposits amounting to Rs. 50,13,52,752/- during the previous year in its various financial schemes. It was a statutory requirement that the particulars of each loan or deposit of Rs.20,000/- or more taken or accepted by the assessee prescribed form had to be furnished in the Tax Audit Report (Colun 10). But the same was not furnished by the auditors. (iii). Even in the course of assessment proceedings, this....
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....nd in the circumstances of the case, the CIT(A) was correct in deleting the addition of Rs.17,54,73,463/- made on account of unexplained deposits u/s 68 of the IT Act, 1961. 3. Whether on the facts and in the circumstances of the case, the CIT(A) was correct in deleting the disallowance of interest of Rs.3,54,46,701/- as contingent and unascertained liability, being the interest bearing funds lying with the agent as interest free. 4. Whether on the facts and in the circumstances of the case, the CIT(A) was correct in deleting the addition of Rs.10,49,477/- relating to disallowance of reimbursement of expenses. 5. Whether on the facts and in the circumstances of the case, the Ld.CIT(A) was correct in deleting the a....
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....at the Ld. CIT(A) is not justified in confirming the addition of interest on FDR amounting to Rs. 2,94,192/- made by the Assessing Officer relying on his order dated 22.03.1999 which order stands annulled/set aside. 3. That once the ld. CIT(A) has deleted the addition made on account of service charges he is not justified in restoring back the same to the file of the Assessing Officer for quantum allowability as held in para 13 of the appellate order." 7. Heard and perused the record. 8. Arguing on the additional grounds which go to the root of jurisdiction of the reopening, the ld DR submitted that the ld CIT(A) has fallen an error in observing that there was illegal exercise of reopening powers and Ld. CIT(A) was unmindful ....
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....ting the matter on record and the submissions the bench is of considered opinion that there is no substance in the dispute raised by Revenue that the grounds of reopening second time are different than those raised earlier. The aforesaid reproduction of reasons show that merely by wording the reasons differently ld AO had tried to invoke the jurisdiction of reassessment. The fundamental question in earlier assessment was the analysis of the income occurring form the deposits collected through its agent. Once the additions from were made in original assessment and re-examined in reassessment proceedings, the same could not have been subject matter of reasons to believe by merely expending the scope of enquiry of the manner and nature of depo....
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.... pari materia to AY1990-91. 14. After examining the reasons of reopening for Assessment Year 1991- 92 available at Page No. 247 to 251, for Assessment Year 1992-93 at page No. 529 to 533, for Assessment Year 1993-94 at page No. 707-711 of the paper book in Volume-II, III and IV respectively, it can be observed that similar to the reasons for reopening for Assessment Year 1990-91 as discussed above, the reopening was in regard to issues already examined and artificially expanding the scope of enquiry on the manner and nature of deposits collected by the assessee. Ld. CIT(A) inspite of appreciating the submissions of assessee failed to benefit the assessee by deciding the grounds in favor of the assessee. 15. In regard to ITA NO. 2358/D....