TaxTMI 
TaxTMI 
2024 (7) TMI 1144
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.... petitioner that for the purpose of Companies Act, the annual accounts for the period from 01.04.2012 to 30.06.2013 was prepared. As per the balance-sheet as on 30.06.2013 'Other Current Assets" of the petitioner was shown aggregating to Rs. 8,07,13,133/- and for sake of brevity, the break up of the same was given in 'Note 17'. Export Incentives receivables Rs. 1,01,46,192/- Interest receivable Rs. 3,24,30,986/- Claims receivables Rs. 3,81,35,955/- Total Rs. 8,07,13,133/- 2.2 Income of the petitioner in the aforesaid annual accounts also included the following income: Export Incentives Rs. 35,16,397/- (Note-19) Interest Rs. 2,41,04,150/- (Note-20) 2.3 For the purpose of Income Tax Act, 1961, annual accounts were prepared for the period from 01.04.2012 to 31.03.2013. The petitioner filed return of income for the year under consideration on 29.11.2013 declaring total income at Rs. 6,38,41,415/-. 2.4 The case of the petitioner was selected for scrutiny assessment. The then Assessing Officer vide notice dated 10.07.2015 called upon the petitioner to furnish various details including the details pertaining to export sale as well as benefit availed in the ....
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....ed by the then Assessing Officer, the petitioner had already furnished all the details including the details of export sales as well as details of benefits of Rs. 35,16,397/- in the form of duty drawback and cash assistance under section 28 (iiia)/(iiib)/(iiic). Learned senior advocate Mr. Hemani further submitted that even the detail of interest income along with ledgers were also submitted before the Assessing Officer and thereafter, considering all the material on record, the then Assessing Officer has framed assessment under section 143 (3) of the Act. Thus, according to learned Senior Advocate Mr. Hemani, no failure on the part of the petitioner as to full and true disclosure for the year under consideration can be attributable to the assessee and thus, notice under section 148 deserves to be quashed and set aside. 4.2 Learned Senior advocate Mr. Hemani submitted that the Assessing Officer must have cogent and reasonable reasons to hold that he has reason to believe that income has escaped assessment and it should not be made on the basis of information and/or third party information. Learned Senior Advocate Mr. Hemani further submitted that the entire reopening is on the cou....
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....er section 148 for reopening the assessment proceedings can be said as mere change of opinion. To decide the aforesaid question, it would be relevant to take a note of reasons recorded. Thus, the same is hereby extracted for the sake of brevity. "1. The assessee filed its return of income for A.Y. 2013-14 on 29.11.2013 declaring total loss (-) Rs. 6,38,41,415/-. The scrutiny assessment was finalized u/s 143 (3) on 29.03.2016 determining total loss (-) Rs .6,38,41,415/-. The assessee derives its business from business as Manufacture of sprinklers & Drip Irrigation System, P.P. Ball valves and HDPE Pipes and Execution of Turnkey Projects. 2. On verification of balance sheet (Note-17) and profit and loss account submitted by the assessee, it is seen that the assessee had accrued export incentive, interest and claims which were not routed through Profit and loss account. Particulars Other current asset Offered in P & LA/c Remained to offer Total 8,07,13,133 2,76,20,547 5,30,92,586 Export Incentive Receivable 1,01,46,192 36,16,397 66,29,836 Interest Receivable 3,24,30,986 2,41,04,150 83,26,836 Claims Receivable 3,81,35,955 0 3,81,35,955 3. Analysis of abov....
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.... discussion that in this case, the issues under consideration was never examined by the AO during the course of regular assessment/reassessment. This fact is corroborated from the contents of notices issued by the AO was 143 (2)/142 (1) and other order sheet entries recorded during the 143 (3)/147 proceedings. It is important to highlight here that material facts relevant for the assessment on the issue(s) under consideration were not filed during the course of assessment proceedings and the same may be embedded in annual report, audited P & L a/c, Balance Sheet and books of account in such @ manner that it would require due diligence by AO to extract these information, For aforesaid reasons, it is not a case of change of opinion by the AQ. 9. For the reasons cited above, the undersigned is of the opinion that it is the fit case for reopening the assessment u/s. 147 for the A.Y. 2013-14 in order to bring to tax the income which has escaped assessment as above. Hence necessary sanction to issue notice u/s 148 is requested from, the Pr. Commissioner of Income Tax-3, Ahmedabad as per the provisions of section 151 of the Act." 8. Considering the contents of the reasons recorded, i....