2026 (9) TMI 713

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....ereby the Tribunal has upheld the order dated 25.09.2014 passed by the Commissioner of Income Tax (Appeals) (hereinafter referred to as 'CIT(A)') vide which the assessment order dated 28.03.2013, passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act of 1961') had been set aside. 2. Narrated precisely, the facts are that the appellant's scrutiny assessment for the assessment year 2007-08 was made by the Assessing Officer on 31.10.2007, whereafter a notice under Section 148 of the Act of 1961 was issued on 23.03.2012. 3. The initiation of said proceedings under Section 148 culminated into an order of assessment dated 28.03.2013 passed under Section 143(3) read with Section 147....

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....d that the CIT(A) has recorded a clear finding that during the course of reassessment proceedings under Section 143(3) of the Act of 1961, the Assessing Officer had examined each aspect, including the issues relating to the Oil and Gas Exploration expenses and the Preliminary expenses and had issued a questionnaire in this regard and being satisfied, did not made any addition. 8. He argued that it is wrong to contend that specific question was not raised. He reiterated that the initiation of reassessment proceedings was nothing but a mere change of opinion and fell foul to catena of decisions of this Court and Hon'ble the Supreme Court. 9. Learned counsel placed for perusal of the Court, reasons for reassessment recorded by the Assess....

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.... assessment of income of Rs. 7,91,29,600/- involving short levy of tax of Rs. 3,27,61,078/-. (c) As per Schedule 25 of profit and loss account Rs. 20,20,00,000/- was shown as prior period income of the assessee, but the AO had added back Rs. 10,90,00,000/- only (after adjusting prior period expenses) instead of Rs. 20,50,00,000/-. As the assessee was following mercantile system of accounting, any income, which is received or deemed to be received, or which accrues during the previous year was to be added back to the income of the assessee. Therefore, prior period income of Rs. 9,30,00,000/- (Rs. 20,20,00,000 Rs. 10,90,00,000) should have been added back to the income of the assessee. The mistake resulted in under assessment of inco....