2025 (8) TMI 278

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....147 of the Act on 16-12-2019. The grounds taken by the assessee read as under:- 1. The Assessment Order for the Assessment Year-2013-14, passed under Sec.143(3) rws 147 of the Act, by the Learned Assessing Officer was arbitrary and is against law and contrary to facts of the case and hence Erroneous and untenable in Law. 2. The Assessing Officer ought not to have re-opened the Assessment, which was completed earlier (original assessment) u/s 143(3), when all the material facts and information, were already disclosed fully and truly, in the course of original assessment, in utter violation of First Proviso to sec. 147 of the Act, which prohibits passing of any assessment order under sec. 143(3) rws 147, after expiry of four years from th....

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....d the assessment framed by Ld. AO. Having heard rival submissions, the appeal is disposed-off as under. Proceedings before lower authorities 3.1 The assessee being resident corporate assessee is stated to be engaged in infrastructure development and construction. The assessee admitted loss of Rs. 51.35 Lacs which was accepted in scrutiny assessment u/s 143(3) on 26-02-2016. 3.2 However, subsequently upon perusal of Profit & Loss Account, it was noted by Ld. AO that though the assessee had claimed loss, it did not reflect any business income. The only income was interest on fixed deposits for Rs. 20.80 Lacs against which the assessee claimed business expense of Rs. 72.46 Lacs. Therefore, the business expenditure was to be treated as pre-....

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...., the case was covered under Explanation 2(c)(iv) to Sec. 147 which provide that excessive loss or depreciation or any allowance shall be a case where the income had escaped assessment. Accordingly, the legal grounds were dismissed. On merits, part-relief was granted to the assessee and Ld. AO was directed to allow administrative expenditure and depreciation. The interest disallowance was confirmed against which the assessee is in further appeal before us. Our findings and Adjudication 4. From the facts, it emerges that the returned loss as filed by the assessee for this year was subjected to scrutiny and an assessment was framed u/s 143(3) on 26-02-2016 accepting the returned loss. Upon perusal of paper-book, it could be seen that durin....

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....AO which would justify reopening beyond 4 years. In such a case, the reassessment proceedings become review of the order which is impermissible. Upon perusal of reasons recorded by Ld. AO to reopen the case of the assessee, it could very well be seen that formation of belief of escapement of income is on same set of material and financial documents which were already available before Ld. AO during the course of original assessment proceedings. The reasons do not indicate any event as to the receipt of any fresh tangible material coming to the possession of Ld. AO subsequent to culmination of original assessment proceedings. The formation of belief is on the same set of material as available during assessment proceedings u/s 143(3). This bei....