TaxTMI 
TaxTMI 
2020 (12) TMI 1413
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....24.06.2019 rejecting the assumption of jurisdiction under Section 147 of the Act. 2. In regard to Assessment Year (AY) 2012-13, a return of income had been filed on 29.11.2012 along with tax audit report and financials, followed by a revised return. An intimation dated 30.01.2014 in terms of Section 143(1) was issued. Inter alia, the foreign tax credit claimed by the petitioner was denied. Thereafter, notice under Section 143(2) was issued and there was exchange of communications between the petitioner and the department in regard to the issues that arose from the returns of income. Specifically, a hard copy of the return of income, financial statements and tax audit report were sought, that were supplied by the petitioner. The petitione....
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....med for re-assessment. The respondent was intimated yet again, about the merger of the erstwhile entity with VTPL and the change of name to ASCPL. 6. Reasons for reopening dated 22.03.2019 were supplied reading as follows: GOVERNMENT OF INDIA INCOME TAX DEPARTMENT Office of the Assistant Commissioner of Income Tax, Non-Corporate Circle-20(1), Room No.311, 3rd Floor, . . . . . . . . . . . . . . . . . . No.21/AAACA2460P/A.Y.2012-13/ACIT-NCC-20(1) Chennai Date: 22/03/2019 M/s.Asianet Star Communications P. Ltd. (Formerly known as M/s.Asianet Communications P. Limited) Kochar Jade, Plot No.22 Thiru.Vi.ka Indl. Estate Guindy, Chennai-600 032. Si....
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....m of excess relief u/s 90/91 and also tax credit in ITR is less than tax credit in 26AS. 3. Therefore, for the reasons discussed in Paras (1) & (2) above, I have reason to believe that there is escapement of income within the meaning of u/s 147 of the Income-tax Act, 1961, in the instant case for the A.Y.2012-13 due to the failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment. . . . . . . . . Asst. Commissioner of Income-tax Non Corporate Circle-20(1), Chennai. 7. The two issues on which jurisdiction has been assumed are i) claim of depreciation on computers, ii) alleged excess relief of tax credit under Section 90/91 of the Act since the tax credit in the income....
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....nd a period of four years from the end of the relevant assessment year, i.e., A.Y. 2012-13, at the fag end of six year period. The proviso to Section 147 states that where an assessment had been completed under scrutiny at the first instance, the time available to the department to initiate proceedings for re-assessment would be extended from four to six years, conditional upon the officer establishing that the escapement of income was attributable to the failure of the assessee to have failed to file a return of income or to have made a full and true disclosure of income in the return of income. 10. In the instant case, the proceedings at the first instance have not resulted in an order of assessment under Section 143(3). However, in my....
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....n of the details sought for by the Officer and supplied by the petitioner at the stage of original assessment and of the reasons for re-assessment that is, depreciation and foreign tax credit reveal total identity of the issues, identified at the time of original assessment and the reasons on the basis of which proceedings for re-assessment have been initiated. Moreover, and admittedly, there is no new material, let alone tangible material, that has come to the notice of the authority to justify the impugned proceeding for re-assessment. 12. As far as the claim of depreciation is concerned, the Officer proceeds on the ground that computers constitute plant and machinery, eligible for depreciation at 15% and not 60% as claimed by the peti....
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....ue in regard to the claim of foreign tax credit and the initiation of re-assessment proceedings on this ground is found to be misconceived, in light of the judgment of the Supreme Court in Commissioner of Income Tax V. Sun Engineering Works (P) Ltd. (198 ITR297). 16. As regards the decisions relied on by the revenue, they turn on the sufficiency of reasons recorded. The Court had rejected the challenge for reassessment on the ground that they will not, under Article 226 of the Constitution of India, test the sufficiency of reasons recorded. These decisions are distinguishable, since I have in the present matter, looked to the reasons only for the limited aspect of comparing the issues raised therein with the issues raised at the time of ....