TaxTMI 
TaxTMI 
2026 (2) TMI 202
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....d 31- 1-2024 in respect of Appeal filed on 7-4-2016 upholding the Reopening of the Assessment u/s. 148 of the Act and passing Order u/s.147 of the Act of Rs. 26,80,400/-. 2. Your Appellant submits that Reopening of the assessment based on order of AO of A.Y. 11-12 is bad in Law and Void and also order of AO merged with ITAT & therefore lost its existence & CIT(A) confirmed 15% on Adhoc cannot be to relied on for A.Y. 2008-09. 3. It is also submitted that proceedings initiated of Reopening u/s 148 was for making fishing inquiries and the AO had not satisfied himself about any escapement of Income. AO did not find any new material to reopen the case. On Merits of the Case: 1. The CIT(A) has erred in confirm....
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....hat the expenditure is not liable to be disallowance since the payment is made to Government Body and is covered by Rule 6DD. Further the payment of Electricity Expenses is to be made in the Office of the local area of MGVCL Village Vejpur, Tal. Dessar where the Appellant is not carrying any business and therefore not maintaining the Account and therefore under circumstances he was required to make payment in cash and hence it is exempt from operation of Sec. 40A(3) and the disallowance of Rs. 42,879/- be deleted. (a) The CIT(A) has erred both in Law and in fact in upholding disallowance of Rs. 1,76,102/- made by the AO u/s.40(a)(ia) being interest paid to following. (a) GE Capital Transportation Financial Services Ltd. Rs....
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....aped assessment or under assess the reopening is the case of change of opinion and/or facts and details regarding Total Income were duly before AO in assessment proceedings and after verification the order was passed. It is therefore submitted that Reopening is bad in Law and Void. 3. CIT(A) has erred both in Law and in Fact the upholding the Reopening of the Assessment u/s.148 of the Act though the Assessing Officer while issuing notice u/s. 148 and Reasons Recorded for Reopening has not taken mandatory permission of Pr. CIT/CIT u/s.151 of the Act and he has also not supplied to the Appellant copy of such permission. The CIT(A) ought to have held that the proceeding u/s.148 are bad in Law and Void. 4. Your Appell....
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....i) disallowance of 1,76,102/- u/s. 40(a)(ia) relating to reimbursement of interest paid by partners. In respect of disallowance of Rs. 4799/- being interest paid on TDS on VAT and Royalty, the said expenditure being the statutory expenditure cannot be allowed. Hence, ground no. 2 to that extent is dismissed. 4. As regards to disallowance of Rs. 42,879/- being payment made in cash to MVGCL are the expenditure since the payment is made to the Government Body is covered by Rule 6DD towards payment of electricity expenses. The assessee is not carrying out any business in the particular year and therefore not maintaining the account and in fact hence made payment in cash. Therefore, the assessee is entitled for the said expenses. Thus, ground....