TaxTMI 
TaxTMI 
2024 (2) TMI 469
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....Petitioner is challenging the action of Respondent No. 1 of issuing notice dated 31st March 2021 under Section 148 of the Income Tax Act, 1961 ("the Act") seeking to reassess Petitioner's income for Assessment Year ("AY") 2015-16. Petitioner is also challenging an order dated 26th February 2022 passed by Respondent No. 2 rejecting Petitioner's objections to the issuance of notice under Section 148 of the Act. 3. Petitioner had filed on 29th September 2015, its return of income for AY 2015-16. Petitioner declared income of 'Nil'. An assessment under Section 143(3) of the Act was made and an assessment order dated 14th December 2017 came to be passed determining Petitioner's total income at Rs. 58,96,900/-. 4. Petitioner thereafter ....
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.... from P & L A/c that assessee has debited Rs. 35,87,05,815/- exceptional item stating the reasons in note-5 that loss occurred due to a manifest material mistake on October 5, 2012 while executing the sale order on NSE as per SAT orders of August, 2014. The same was added back in the computation of income stating that the same was already claimed in AY 2013-14 and finally the business income of Rs. 17,66,31,378 has been arrived which was set off fully from business loss of previous year (AY 2013-14). It was further noticed in the ITR that major carried forward business loss of Rs. 34,39,23,169 was pertaining to AY 2013-14. The loss arrived in AY 2013-14 was due to the reasons as assessee has debited Rs. 35,87,05,815 in the computation as Lo....
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....,87,05,815/-. 3.1 Further, it was noticed that the business income of Rs. 17,66,31,378 has been arrived which was set off fully from business loss of previous year (AY 2013-14). The loss arrived in AY 2013-14 was due to the reasons as assessee has debited Rs. 35,87,05,815/- in the computation as Loss due to erroneous trades. 3.2 Each assessment year is distinct and separate and hence in every year normal income or loss as well as MAT income is mandatorily required to be simultaneously computed and whichever is higher to be offered for tax. It was however noticed in this case that in the AY 2013-14 as the assesse has debited Rs. 35,87,05,815 in the computation for normal income as 'Loss due to erroneous trades', the same was also requi....
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....sis for forming a reason to believe there was escapement of income is from the records filed by Petitioner with return of income. 8. Moreover, admittedly, as stated in the affidavit in reply filed by one Keshav M. Dixit, Deputy Commissioner of Income Tax-4(1)(1), affirmed on 8th September 2022, the issue involved as noted in the reasons for reopening were examined at the time of original assessment. Therefore, it is a clear case of change of opinion which does not constitute justification and/or reasons to believe that income chargeable to tax has escaped assessment. After admitting that the issues involved as noted in the reasons for reopening were examined at the time of original assessment proceedings, it is stated that the factual erro....