TaxTMI 
TaxTMI 
2023 (10) TMI 1567
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....thered to form a reason to believe but only desired further verification of the documents so filed. 3. The learned CIT(A) erred in holding that the reopening u/s. 147 is bad in law and out of jurisdiction relying on the judgement of Hon'ble Apex Court in the case of Kelvinator India vs. CIT ignoring the fact that since, the assessing officer in the original assessment order did not farm any view or any opinion with regard to the items of income which escaped its notice, it will not amount, to review of the order or change of opinion. 4. The learned CIT(A) erred in holding that the reopening u/s. 147 is bad in law ignoring the decision of Supreme Court in the case of A.L.A. Firm vs. CIT reported in 102 ITR 622 wherein it was held that where the Assessing Officer had not considered the material and subsequently come by the material from the record itself, then such a case would fall within the scope of section 147 of the Act. 5. The learned CIT(A) erred in partly al/owing the appeal of the assessee holding that the reopening u/s. 147 is bad in law without adjudicating the case on merits." 3. The brief facts of the case are that the assessee was in th....
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....lwai Lands 40021250 2045400 29805000 595000 72466650 Ambala Lands 4408000 88000 9000000 1480000 14976000 Total 121229750 6706480 144678826 833337123 355951679 The lands discussed as above along with certain other lands held by the assessee company were sold during the year, the details of which are as under : Location Sale deed amount Stamp duty RC Charges Total cost Khajuri Lands 154674500 9280520 75000 164030020 Jamalapur Lands 98600000 5915200 60000 104575200 Palwai Lands 68300000 4149000 45000 72494000 Ambala Lands 14080000 844800 70015 14994815 Total 335654500 20189520 250015 356094035 After having verification of several documents in the form of sale deed furnished by the assessee, it is observed that while computing the profits from sale of lands, the cost of acquisition has to be taken at Rs. 12,12,29,250/- being purchase consideration and the corresponding stamp duty of Rs. 67,06,480/- totaling to Rs. 2,79,35,730/- for which evidence by way of purchase deeds were furnished. The excess claim of the assessee company th....
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....ls and M/s DRS Packers and Transporters (P) Ltd.,. Theses concerns are nothing but share holders of the assessee company and arc holding Rs. 1,89,00,000/- and Rs. 98,00,000/- worth shares which is 32.44% and 16.82% of the total share holding of the assessee company. During the year. under relevance the assessee is having accumulated profits to the extent of Rs. 41,29,13,143/- Hence the provisions of deemed dividend as per section 2(22)(e) clearly attracted in the said concerns. Which needs through examination. vii) On perusal of information submitted, it is observed that the directors of Sri Dayanand Agarwal and Rajender Agarwal are holding 132765 & 58590 shares worth Rs. 1,32,76,500/- and Rs. 58,95,000/- which is 22.79% and 10.12% of the total share holding of the assessee. On perusal of information filed by the assessee on 30.11.2010 it was came to notice that it was stated that there was a mistake in statement of details of enquiry share holders as on 31.03.2008 submitted earlier due to reason that the said balance sheet was ended on 23.07.2009 and filed revised list of equity, shareholders as per which shares held by Sri Dayanand Agarwal and Sri Rajender Agarwal came d....
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.... the assessment as reasons clearly shows that reopening had been done for ("thorough verification"). It was submitted that the details were called for by the Assessing Officer in the original assessment proceedings and he has drawn our attention to the questions and answers given by the assessee in response to the scrutiny assessment. Our attention was drawn to page 1 of the paper book wherein the assessee has provided the details of land purchased and sold to the Assessing Officer along with copies of sale deeds etc (Annexure VII & VIII). It was submitted that once the documents were available on record with the Assessing Officer while passing the original assessment order and the Assessing Officer has formed an opinion based on such document, thereby accepting the income declared by the assessee. Hence, no fresh addition can be made in the garb of reopening of the assessment as the material was already available with the Assessing Officer, as it amounts to change of opinion. 8. The ld.AR has drawn our attention to the original assessment order passed in the case of assessee and our attention was drawn to pages 4 and 5 of the assessment order wherein the Assessing Officer has m....
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....s. Rs. 27,16,63, 830/- by the Assessing Officer. 10. In the present case, the proceedings under section 147/148 and the reasons recorded for the opening of assessment were provided to the assessee which are reproduced hereinabove. 10.1. The reasons recorded shows that the assessing officer wanted verification of the computation of total income, profit and loss, account and balance sheet and observed that the assessee company has debited an amount of Rs. 66,15,891/- towards loss on sale of assets which was added by the assessee as it not deductible in the computation of its total income filed. 10.2. The second paragraph of the reasons recorded clearly shows that the details of purchase and sale of lands were submitted by the company, and it was placed on record. In fact, the said details were captured by the Assessing Officer in the reasons only from the assessment record and from the reply submitted by the assessee. Thus, the entire details for purchase and sale of land were submitted originally and this finds a place very clearly in the reasons recorded and thus the submission of the assessee company that full details in relation to the purchase and sale of land etc were ....
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....iew, there has to be some fresh and tangible material available for the purposes of reopening with the Assessing Officer to reopen the assessment. 11.1. In the present case, all the sale and purchase documents were duly provided by the assessee in the scrutiny assessment and thereafter, the Assessing Officer has passed the assessment order. No fresh material evidence was available with the Assessing Officer to reopen the already concluded assessment. The judgement of the Supreme Court in Kelvinator India versus CIT reported in 320 ITR 561 clearly states that there should be some tangible material to re-open an assessment and an assessment cannot be re-opened to reappraise or verify or to reverify concluded assessment when the assessing officer has applied his mind to all the details in relation to the computation of capital gains and which were accepted in the original assessment proceedings after due verification and as seen from the preamble to the assessment order passed under section 143 (3) on 31/12/2010 which clearly states that the company submitted all the information called for and explained the return of income and after due verification of the information submitted th....
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....erified. Hence there was a clear departure from the stand. There is no averment in the reply that would suggest that the information was verified and thereafter approval was taken. We are in agreement with the petitioner's counsel who placed reliance on the following Judgments: (i) Hindustan Lever Ltd. (supra) Wadkar. (ii) Aroni Commercials Ltd. v. Dy. CIT [2014] 44 taxmann.com 304/224 Taxman 13/362 ITR 403 (Bom.). (iii) Peninsula Land Ltd. v. Asstt. CIT [2022] 134 taxmann.com 33/284 Taxman 556/439 ITR 582 (Bom.). (iv) First Source Solutions Ltd. v. Asstt. CIT [2021] 132 taxmann.com 121/438 ITR 139 (Bom.). 10. Having perused the reasons and the information, we find no new tangible material as contended by the respondents. Debits and Credits can in no way disclose the nature of transactions or lead to an inference of income escaped assessment. The respondents have not taken any ground of extrapolation. The debits and credits cannot be a ground for further enquiry and verification and the same is impermissible. (Emphasis supplied by us). We find no live link or nexus between the information received and the income escaping ....