TaxTMI 
TaxTMI 
2023 (9) TMI 1030
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....f the Income Tax Act 1961 (here-in-after referred to as "the Act") relevant to the Assessment Year 2015-16. 2. The assessee has raised the following grounds of appeal: 1. That the notice issued under section 148 of the Act and subsequent reassessment proceedings and the assessment order passed under section 143(3) by the learned AO is against the law and direction/instruction of the ld. Hon'ble Board and therefore the order passed by the learned AO is to be quashed and accordingly the learned AO be direct to quash the assessment order or accept the returned income. 2. That the learned CIT(Appeal), has erred in law and facts by confirming the action of the learned AO of treating the income under the head Income from ....
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....ome shown under the head business: Rs.30,90,55,933.00 less brought forward business losses Rs.43,45,870.00 Rs.30,47,10,063.00 Total income as per the return of income 609,55,32,180.00 5. However, the AO on verification of the case records found that there was no business income shown by the assessee in the income tax return whereas the assessee has set off of the brought forward business losses against the interest income which was to be classified under the head other sources. As per the AO, the business loss brought forward from the earlier year cannot be set off against the income from other sources under the provisions of section 72 of the Act. Thus, as per the AO, the set off of the brought forward business loss ag....
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....ere available during the assessment proceedings under section 143(3) of the Act. 8.1 It was also contended by the learned AR that the original assessment was carried out under section 143(3) of the Act for the limited items of scrutiny such as long-term capital gain, income from heads of income other than business/ profession mismatch and sales turnover mismatch. There was no whisper during the original assessment proceedings regarding the brought forward of business losses which was set off against the interest income. Similarly, there was no occasion to invoke the provisions of section 14A read with rule 8D of income tax rules during the original assessment proceedings. Accordingly, the learned AR contended that the impugned case was s....
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....se records, it is noticed from income and expenditure account for the period 21.05.2014 to 31.03.2015 =========== 11.1 What is emerging from the above reasons is this that the AO has initiated the proceedings after verification of the case records which implies that there was no fresh tangible material available on record distinct from what was available during the original assessment proceedings. Thus, in the absence of any fresh material coming to the notice of the AO giving rise to draw the reasons to believe that the income of the assessee has escaped assessment, in our considered view, is without any basis and therefore the proceedings initiated under section 147 of the Act is liable to be quashed. In holding so, we draw support and....
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....rs and having regard to the decisions of Apex Court which propounded that the Courts would be failing to perform their duty, if reliefs were refused without adequate reasons, we see that the action on the part of the respondent authority is impermissible in view of aforesaid set of circumstance. The observations made by the Apex Court in case of Calcutta Discount Co. Ltd. v. ITO reported in [ 41 ITR 191 at page 195 head-note (v) are worth to be reproduced hereafter: "That though the writ of prohibition or certiorari would not issue against an executive authority, the High Courts had power to issue in a fit case an order prohibiting an executive authority from acting without jurisdiction. Where such action of an executive authority,....