TaxTMI 
TaxTMI 
2026 (3) TMI 460
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....Year 2013-14, assessee filed his Return of Income on 02-09- 2023 declaring total income of Rs. 4,82,69,350/-. The assessee was following cash system of accounting. Original assessment was completed on 28-01-2016 accepting the returned income. Thereafter beyond four years period, the assessment was reopened by recording the following reasons: "....1. Receipt from the professional fee was declared in the ITR after deducting TDS from the gross professional fee on netting basis. However gross receipts from the professional fees should be declared in the ITR. 2. The assessee declared exempted income of Rs. 44,27,654/- during the year in the ITR but he did not disallow interest expenses (which were incurred for earning the exempted income) u/s. 14A of the Act in the ITR as well as in the relevant column in the audit report, It is evident from the above facts that the assessee had not truly and fully disclosed material facts necessary for his assessment for the year under consideration thereby necessitating reopening u/s. 147 of the Act." 2.1. The assessee objected to the reopening of assessment as there is no failure on the part of the assessee to make full ....
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....edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 5. Ld. Sr. Counsel Shri Tushar Hemani appearing for the assessee submitted that the assessee is a doctor by profession following cash system of accounting from the inception and practicing cardiologist. The assessee filed his original Return of Income on 02- 09-2023 declaring total income of Rs. 4,82,69,350/- and regular assessment was completed on 28-01-2016 by passing assessment order u/s. 143(3) of the Act accepting the returned income. It is thereafter the assessment was reopened beyond period of 4 years on the ground that the gross receipts from the professional fees was not declared by the assessee. The assessing officer failed to establish that there is no failure on the part of the assessee in disclosing full and true income of the assessee. Therefore the reopening is merely based on verification of computation of income, which is not permissible and therefore the reopening is not justified and reliance is place on the decision of Hon'ble Gujarat High Court in the case of M/s. AIA Engineering Ltd. Vs. ACIT (2022) 138 taxmann.com 534 (Guj.) Ld. Sr. Counse....
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.... some time because of mismatch; credit of full amount of Tax Deducted at Source may not be allowed, thus it is to keep check over the claim of the credit of the amount of Tax Deducted at Source. Thus the summation of the amount of (a) (b) and (c) will be equal to the amount of fees credited by my clients and therefore there is no difference in amount of accounting of professional fees. I am pleased to furnish the Reconciliation of the Gross Amount of Professional Fees as per Form 26 AS and the Gross Amount of professional fees accounted by me on cash system of accounting in my Books of Account for the F.Y. 2011-12, 2012-13 and 2013-14. Financial Year Gross amount of professional fees as per Form 26AS Rs. Gross amount of professional fees accounted in my Books of Account as per cash system of accounting Rs. Difference Rs. 2011-2012 3,23,29,278 2,90,37,950 32,91,328 2012-2013 3,60,10,975 4,49,01,386 88,90,411 2013-2014 3,40,27,746 3,45,11,993 4,84,247 From the above chart your honour will appreciate that for the F.Y. 2011-12 the amount of fees offered for Tax is less by Rs. 3291328/- as compared to the amount ....
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....me, even it is assessed in the other years. 7.3. Further it is for the same reason for the assessment year 2010-11, the assessment was reopened for rejecting of income of Rs. 97,13,683/-. On proper explanation of the assessee and the detailed method of accounting year, no addition were made by the assessing officer on this count and reassessment was completed vide order dated 29-11-2017. Though this fact was also brought to the knowledge of the assessing officer during the reassessment proceedings, the same was rejected by the A.O. by holding that the assessee is habitually netting his receipts with TDS deducted, without appreciating the basic accounting system of cash followed by the assessee. Thus in our considered view, the assessing officer is not correct in reopening the assessment when there is no failure on the part of the assessee in disclosing the full income before the Income Tax Authorities. 8. The second reason for reopening of assessment namely no disallowance under section 14A of the Act on the exempted income of Rs. 44,27,654/-. The assessee vide its reply dated 17-11-2021 informed the assessing officer that the assessee had sufficient interest free funds from ....
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....tax Act, 1961 Income Chargeable as (Capital receipt) - Assessment year 2014-15-Assessment was sought to be reopened in case of assessee on ground that assessee had shown capital receipt of Rs. 9.45 crores from SHIS which was utilized in purchase of fixed assets had not been added back and same had resulted in escapement of income - However, it was found that all aspects of matter sought to be relied upon for purpose of reopening were very much before Assessing Officer when scrutiny assessment under section 143(3) was carried out and no new tangible material could be said to have come to knowledge of Assessing Officer after framing of assessment - Whether therefore, reopening of assessment being mere change of opinion was to be quashed and set aside - Held, yes [Paras 7 and 10] [In favour of assessee]" 8.2. The other case laws cited by the assessee are also support the above view taken by the Jurisdictional High Court. Thus we have no hesitation in quashing the reassessment proceeding is nothing but mere change of opinion. Consequently the addition made by the assessing officer of Rs. 86,26,454/- is liable to be deleted. Thus the grounds raised by the assessee are allowed. 9. ....