TaxTMI 
TaxTMI 
2003 (11) TMI 287
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....e three years ground No. 1 reads as follows: "The learned CIT(A) erred in confirming the action of the AO in reopening the assessment under s. 147 of the IT Act in view of the retrospective application of the provisions of s. 14A of the IT Act." 3. As per the assessment order passed under s. 143(3) r/w s. 147 for the years under consideration it was noticed by the AO that some taxable income has escaped assessment. Accordingly, assessments were reopened under s. 147 by issuance of notice under s. 148. The assessee is a co-operative housing society. It was noticed that besides receiving contribution from its members, this society also derived income of rent from a community hall on jetting out to outsiders. The next source of income as men....
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....o. 11 of 2001, dt. 23rd July, 2001. He has also submitted that the reopening of assessment was bad in law because there was no escapement of income and the notices were issued due to change of opinion. Learned Authorized Representative has emphasized that the proviso to s. 14A has specifically mentioned that the AO is not empowered to reassess under s. 147, any assessment beginning on or before 1st April, 2001. So the restriction is imposed so that the already completed assessment could not be reopened. The AO has disregarded the specific provision and wrongly reopened the assessment. Learned Authorized Representative has also mentioned that the AO was not empowered to investigate all the receipts of the assessee and to restart the entire a....
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....168 CTR (Raj) 612 : (2001) 250 ITR 218 (Raj), Ranchi Club Ltd. vs. CIT (1995) 129 CTR (Pat) 385 : (1995) 214 ITR 643 (Pat) and Pradip Kumar Harsaranlal vs. AO (1997) 141 CTR (All) 37 : (1998) 229 ITR 46 (All). 7. We have carefully considered the submissions of both the sides and also thoroughly perused the orders of the authorities below in the light of the material placed before us as well as the case laws cited. In the reopening of assessment it was mentioned that in view of the provisions of s. 14A, while computing total income, no deduction should be allowed in respect of expenditure by the assessee in relation to income which did not form part of total income under IT Act. Subsequently the assessment was made under s. 143(3) r/w s. 14....