AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 1292
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....he said year's assessment on the ground that income chargeable to tax had escaped assessment as provided in section 147 of the Act. The Petitioner also challenges the order dated 2nd December 2021, rejecting the objections to the proposed action of reopening. 2. Petitioner is a Government Corporation engaged in the business of generation of electricity from atomic energy. In its return of income filed on 30th September 2015, it declared total loss of 240,87,30,919 Rs. under normal provisions and Book Profit at Rs. 2911,17,90,229/- under section ('u/s') 115JB of the Act. Its case was selected for scrutiny and assessment u/s 143(3). 3. By a notice u/s 142(1) dated 28th August 2017 the following details were sought from the Petitioner: i. ....
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.... dated 27th March 2021 for re-assessment of income/loss for AY 2015-16 and called upon the Petitioner to file return in the prescribed form for the said AY. Petitioner filed return of income in response to the said notice on 23rd April 2021 and sought the recorded 'reasons to believe' for issuance of the notice u/s 148 of the Act. 6. On 17th November 2021 the recorded reasons for reopening were supplied which read as under: i. 2. Subsequently on perusal of the records it was observed vide para no. 5 of the assessment order that the income of undertakings eligible for 80IA deduction had been computed at 1225,95,39,899/- Rs. after considering interest income on Renovation & Modernization (R & M) and on Research and Development (R& D) to th....
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....re not eligible for deduction u/s 80IA of the Act and therefore should have been disallowed. However, this was not done and resulted in excess allowance of deduction of 19,51,67,651/- u/s 80IA leading Rs. to under assessment of income to the same extent. iii. 2.2 Further, it was also observed that the assessee had debited an amount of 4.89 Rs. crore in the statement of Profit and Loss account towards R & D expenditure and credited the said amount as transferred or withdrawn from the R&D Reserve Fund. While computing book profit assessee claimed reduction of the aforesaid amount of Rs.4.89 crore being withdrawn from the R&D Reserve Fund and the same was accepted while assessment. This was not in consonance with the provisions prescribed u....
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....onstrued as the failure on the part of the assessee. 9. Secondly, it was urged that there was no new tangible material with the AO, that would support his 'reason to believe'. It was stated that the reassessment proceedings were nothing but 'a change of opinion' as the entire issue with regard to the interest income on the funds collected as R & D and R & M funds to be treated as income under the normal provision and 115JB of the Act was decided against the Petitioner and is pending decision before the CIT (A) in an appeal filed. 10. Respondent No. 1 in its reply stated that action u/s 147 was permissible even if the AO gathered his reasons to believe from the very same record as had been the subject matter of completed assessment and pla....
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....circumscribed by the first proviso. It is now well settled that unless any income has escaped assessment by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment, the AO has no jurisdiction for reassessment. 12. The criteria for reopening of assessment after a period of four years are no longer respondent integra in view of the judgment of this Court in the case of Ananta Landmark P. Ltd v Dy. CIT [2021] 131 taxmann.com 52 (Bom) = [2021] 439 ITR 168 (Bom) wherein this Court held that where assessment was not sought to be reopened on the reasonable belief that income had escaped assessment on account of failure of assessee to disclose truly and fully all material facts that wer....