TaxTMI 
TaxTMI 
2025 (1) TMI 1560
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....erial facts necessary for assessment. 2. Whether on the facts & circumstances of the case and in law, Ld. CIT(A) has erred in ignoring the fact that AO has clearly recorded reasons for reopening stating that as per report of DERC, assessee has made expenses purchase of Capital goods at 68% higher than their purchase price in A.Y. 2005-06 & 2006-07 leading to diversion of profits and although the above purchase of Capital Goods does not pertain to year in consideration, however depreciation has been claimed on such assets during the year under consideration. 3. Whether on the facts & circumstances of the case and in law, Ld. CIT(A) has erred in not adjudicating on merit on the issues of addition on LPSC & Power Theft of Rs. 8,86,78,767/-, issue of addition on Account of capitalization of personnel cost of Rs. 5,67,47,209/- by holding that the grounds have become academic pursuant to the quashing of reassessment proceedings. 4. The appellant carves leave for reserving the right to amend, modify, alter, add or forego any grounds(s) of appeal at any time before or during the hearing of this appeal. 5. Whether there is any delay in filing of appeal (if yes, please attach applica....
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.... escaped assessment, namely:- 1. Where no retum of income has been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax; 1. Where a retum of income has been fumished by the assessee but not assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the retum: 1. Where an assessment has been made, but- 1. Income chargeable to tax has been underassessed; or 2. Such income has been assessed at too low a rate; or 3. Such income has been made the subject of excessive relief under this Act, or 4. Excessive loss or depreciation allowance or any other allowance under this Act has been computed. Explanation 3. For the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the Income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this secti....
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....ion 147 of the Income Tax Act, 1961. The AO has to apply his mind to the information, if any, collected and must form a belief thereon. In the circumstances, there is not merit in the civil appeal. The department was not entitled to reopen the assessment. 5.1.4 After formation of the belief that income has escaped assessment, the next important step is that AO has to record reasons in writing that income has escaped assessment. The reasons should be clear specific and not vague, it should clearly point towards the escaped income and not based on any kind of suspicion, conjunctures and surmises. It is not only mandatory upon the AO to record the reasons but also it is mandatory upon the AO to supply the copy of the same to the assessee after he files his return enabling him to make his case. 248 ITR (P&H) 266, 203 CTR (Bom) 232, 258 ITR (Bom) 183, 96 TTJ (Hyd) 832, 106 TTJ(JP) 114, 112 TTJ(Del) 445, 218 CTR (Guj) 53, 114 ITD (Del) 166, 340 ITR (Bom) 66, 350 ITR (Bom) 120, 350 ITR (Guj) 131. It is mandatory upon the AO to record the reasons for re-opening of the assessment. Now after filing of the return it is the right of the assessee to obtain the copy of the reasons recorded by ....
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....ur years from the end of the relevant assessment year, where, the assessment has been completed u/s. 143(3) of I.T. Act unless the income has escaped assessment by reason of the failure of the assessee to disclose fully and truly all material facts necessary for assessment. While recording the reasons, the AO has merely alleged that the assessee has failed to disclose full and true material facts. However, he has nowhere, in the reasons recorded stated any instance of failure on the part of the assessee to disclose any material facts in respect of issue sought to be re-assessed. The entire premise of the re-assessment was based on scrutiny and verification of the material already existing on record and not even an iota of any new tangible material which the assessee had failed to disclose was brought on record by the AO. It has been held in several decisions of Hon'ble High Courts that, if the reasons recorded for reopening the assessment after expiry of four years from the end of the relevant assessment year do not specify that the income has escaped assessment on account of default on failure on the part of the assessee to disclose material facts, the entire re-assessment pro....