2025 (6) TMI 972

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....n confirming the reopening of the assessment as per law, as the AO erred in initiating reassessment proceedings on the same set of facts which were available to the AO at the time of original assessment proceedings. 3. Representatives of both sides were heard at length. Case records carefully perused and the relevant documentary evidences brought on record duly considered in the light of Rule 18(6) of the ITAT Rule, 1963. 4. Briefly stated, the facts of the case are that the assessee filed its return of income electronically on 30.09.2012, declaring a loss of Rs. 6,95,332/-. The assessment was framed vide an order dated 16.03.2015 u/s 143(3) of the Income-tax Act, 1961 [hereinafter referred to as "Act"], by which the total assessed in....

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....A.Y.2012-13 which is huge amount, even though there was no business during the year under consideration. Further, it was also noticed that the liability for Sundry Creditors was increased amounting to Rs. 32,06, 101/- during the year, which is against the information of ROI filed by it as there was no business during the year. Hence, considering above facts details of Sundry Creditors needs to be verified u/s. 41(1) of the I.T. Act for disallowance for cessation of liability. In view of above, there is failure on the part of the assessee to disclose fully and truly all the material facts necessary for its assessment, the undersigned has reason to believe that the income chargeable to tax, amounting to Rs. 16,76,236/- has escaped as....

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.... 7. During the course of the original assessment proceedings, vide a submission dated 10.01.2015, the assessee has submitted complete details of other advances received, with complete details of sundry creditors. The assessment was completed after examining all the relevant details, considering which the AO has made the ad-hoc disallowance of Rs. 30,00,000/- on account of sundry creditors u/s 41(1) of the Act. 8. A perusal of the reasons mentioned hereinabove clearly shows that the AO has reopened the completed assessment for the issues considered by him during the original assessment proceedings without bringing any new material evidence on record. In fact, the reasons themselves show that after reconsidering the balance sheet of the ....