TaxTMI 
TaxTMI 
2018 (2) TMI 2116
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.... erred in law and on facts and circumstances of the case in deleting addition of Rs. 1,79,44,942/- on account of receivables. 3. The Ld.CIT(A) has erred in law and on facts and circumstances of the case in deleting addition of Rs. 1,40,22,335/- on account of advertisement expenses. 4. The appellant craves leave to add, alter, amend or forego any ground of appeal at any time before or during the course of hearing of the appeal. CO No. 363/del/2011 1. That the CIT(A) erred on facts and in law in not holding that the reassessment order dated 16.12.2009, passed under section 147/143(3) of the Act was beyond jurisdiction, bad in law and void ab-initio. 1.1. That the CIT(A) erred on facts and in law in holding that the reassessment proceedi....
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....nst returned loss of Rs.(-)4,63,27,044/-. Thereafter notice u/s 148 was issued on 25/03/09 after recording reasons, which were conveyed to assessee during the reassessment proceedings. Various objections regarding legality in reopening of assessments were traced which were dealt with by the Ld. AO 2.1. The Ld. AO thereafter completed the reassessment proceedings by making various additions as under: 1. On account of inadmissible expenses, payable under schedule xiii of companies act Rs. 6,04,991/- 2. On account of non deduction of TDS u/s 201(1A) Rs. 2,18,91,250/- 3. On account of prior period expenses Rs. 29,91,085/- 4. Disallowance on account of receivable Rs. 1,79,44,942/- 5. On account of capital expenditure Rs. 1,40,22,335/-....
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....enged. We therefore deal with the legal issue raised by assessee in the Cross Objection as it goes to the root of the case. 3.2. Ld.AR submitted that the case of assessee is covered by Explanation 1 to section 147, as all material facts relevant for assessment of the issue were disclosed during the original assessment proceedings, in terms of Proviso to section 147. He submitted that as the primary facts relevant for consideration of issue were fully and truly disclosed, the reassessment proceedings initiated under section 147 would be bad in law. Further Ld.AR submitted that nowhere in the reassessment order Ld. AO indicated any failure on behalf of assessee to fully and truly disclose material facts relevant for the purposes of assessmen....
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....g the expenditure not been considered for the purposes of deduction in the P&L account. The decisions relied upon by Ld. DR in the written submissions filed mostly relate to situations where there was tangible material available outside the record based on which Honble Supreme Court and various High Courts have held reassessment proceedings to be valid. 4.2. In our considered opinion there was no tangible material in the possession of Ld. AO to initiate the reassessment proceedings and the additions made by Ld. AO was based on the materials already on record which has failed to stand the test of law as the same has been deleted by Ld. CIT (A) by observing categorically that they were never considered for the purposes of deduction in the or....