2009 (1) TMI 96

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....ax Act is required to be taxed in the hands of the partners and not partnership firm? (ii) Whether, on the facts and in the circumstances of the case and in law, the Income Tax Appellate Tribunal is right in coming to the conclusion that reopening of the assessment under Section 147 of the Income Tax Act is bad in law as the assessee has furnished all the necessary particulars and facts about its income in the return filed earlier and during the regular assessment? 2. As both the issues are inter-linked, they are being dealt with together. 3. The appellant-Revenue is in appeal against order dated 05-10-2007 made by the Income Tax Appellate Tribunal, Ahmedabad Bench 'D' in ITA No.2112/Ahd/2000. 4. The relevant assessment year is ....

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....(3) read with Section 147 of the Act was completed on income of Rs.30.50 lakhs, by taxing the amount of Rs.30.50 lakhs, which was deposited by the assessee, for claiming deduction under Section 32AB of the Act, in assessment year 1988-89 6. Against the second re-assessment, the assessee carried the matter in appeal before the CIT (Appeals). The assessee's appeal was dismissed. Aggrieved thereby, the assessee filed a Second Appeal before the Tribunal, which has been allowed by the order impugned herein. 7. Heard Mr. B. B. Naik, learned senior advocate for the appellant. He has submitted that the Tribunal is in error in holding that after dissolution of the partnership firm, the amount withdrawn from the deposit account opened in pursua....

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....The reasons recorded for initiating the proceedings under Section 147 of the Act were never produced even though enough time was granted for doing so. The Assessing Officer had first initiated the proceedings under Section 147 of the Act on 03-02-95, for taxing the escaped income of Rs.30.50 lakhs. After application of mind to the material on record, the Assessing Officer framed an assessment order on 31-3-2007. Thereafter the Assessing Officer initiated proceedings under Section 147 for the second time in respect of the same income which was the subject matter of proceedings under Section 147, commenced by issuing notice dated 03-02-1995. The factors that weighed with the Tribunal were that: (i) the amount had already been taxed in the ....