TaxTMI 
TaxTMI 
2025 (2) TMI 1960
X X X X Extracts X X X X
X X X X Extracts X X X X
....Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in allowing the written of advances of Rs. 1,37,05,000/- when the assessee has not debited the amount of such debt or part of debt in that previous year to the provision for bad and doubtful debts account made under that clause. In CO No. 19/JP/2024, the assessee has raised the following grounds: - 1. The order passed u/s. 148 of the Act is bad in law. 2 As the assessee raised issue on validity of notice issued u/s. 148 of the Act, through the present C.O. against the appeal of the Revenue, we deem it fit to decide the same first and then if required, appeal of the department will be taken up for adjudication. The Brief facts of the case are that the assessee bank is an Artificial Judicial Person and established by the Central Govt. under the aegis of Regional Rural Bank Act, 1976 (RRB). The case of the assessee was selected for complete scrutiny under the CASS selection system. The case of the assessee was assessed at Rs. 171,16,33,482/- against the returned income of Rs. 168,98,64,432/- u/s. 143(3) r.w.s. 144B of the Act. The assessee being aggrieved with this order (disallo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ibunal, it is found that a non-taxable item is taxed or a permissible deduction is denied, there is no reason why the assessee should be prevented from raising that question before the Tribunal for the first time, so long as the relevant facts are on record in respect of that item. There is no reason to restrict the power of the Tribunal under section 254 only to decide the grounds which arise from the order of the Commissioner (Appeals). Both the assessee as well as the Department has a right to file an appeal/cross-objections before the Tribunal. There is no reason why the Tribunal should be prevented from considering questions of law arising in assessment proceedings although not raised earlier. In the case of Jute Corpn. of India Ltd. v. CIT [1991] 187 ITR 688, the Court, while dealing with the powers of the AAC observed that an appellate authority has all the powers which the original authority may have in deciding the question before it subject to the restrictions or limitations, if any, prescribed by the statutory provisions. In the absence of any statutory provision, the appellate authority is vested with all the plenary powers which the subordinate authority may h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed and explained by the assessee in its reply. Hence, there can't be any allegation of escapement of income on assessee; rather it falls in the category of "Change of Opinion". 6 Moreover, the issues under consideration are already decided in favour of the assessee in its own case by the coordinate bench in ITA No. 272/JPR/2018, A.Y. 2014-15, Dated: 17-05-2018 and in the case of Nagaur Urban Cooperative Bank Ltd. vs. ACIT vide ITA No. 240/Jodh/2013, Dated: 29-11-2013. We have considered the submissions forwarded by the Ld. DR vide letter dated: 21.01.2015 also and found the same to be not in support of the department either justifying re-opening the matter or present appeal before us. Hence, the same is not relied upon by us. 7. For better understanding of the subject we are reproducing herein below the judicial pronouncements relevant to the matter as under: [2025] 171 taxmann.com 52 (SC) PCIT vs. K.R. Jayaram The Assessing Officer has no power to review; he has power to reassess. The power of reassessment has to be based on fulfillment of certain pre-conditions and if the concept of ''change of opinion'' is removed, then, in the garb of reo....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of improvement against capital gains and there was no other issue. [Para 25] * For the above reasons, the Tribunal was right in allowing the assessee's appeal. [Para 27] [2024] 169 taxmann.com 725 (SC) ACIT vs. Adani Power Rajasthan Ltd. In light of the provision of section 37 of the IT Act, and section 135 of Companies Act, when the assessee was called upon to explain, the petitioner has explained vide objections and inter alia contended that by virtue of Explanation 2 attached to section 37 the Assessing Officer has erroneously concluded that such CSR expenditure cannot be allowed under section 37 and to that extent, there is escapement of income, the said conclusion is patently erroneous and as such, the action which is sought to be initiated is impermissible. In fact, as a matter of records, the assessee has made average net loss of Rs. 187.67 crores during three immediately preceding Financial Years and as such, the assessee was not under obligation to spend any amounts toward CRS by virtue of section 135 and as such, the expenditure incurred by the petitioner is not the one which requires disallowance under Explanation 2 to section 37(1). The e....