Case Law Details
There was no fresh tangible material before the Assessing Officer to reach a reasonable belief that the income liable to tax has escaped assessment. The order passed originally on 29th March 2005 under Section 143(3) of the said Act was passed after the respondent had made adhoc claim for expenditure at 30% of the professional receipts in the revised return of income which was later withdrawn. In fact the reasons for reopening the assessment for the year 2002-03 itself records that the the claim of 30% adhoc expenses was withdrawn when the respondent assessee was asked to substantiate the claim.
Therefore, the same material was a subject matter of consideration during the proceedings for assessment leading to order dated 29th March, 2005. In the circumstances there could be no basis for the Assessing Officers to form a belief that income has escaped assessment. It is a settled position of law that review under the garb of reassessment is not permissible. In the circumstances, we uphold the order of the Tribunal dated 19th March, 2010.
HIGH COURT OF BOMBAY
INCOME TAX APPEAL NO.4646 OF 2010
Commissioner of Income Tax
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Regarding “jay wrote on 16 July, 2012, 16:52 – amitabh will win, will any other aam admi have a similar win”
Dear jay, please read full story, amitabh won on technical aspect, many more have won on such aspect, because it is well settled that a reassessment cannot be made without new tangible material on record. Therefore, this win is nothing.
In my view Amitabh ji miserably lost when his tax team withdrew the claim of Rs.6.31 Crore just when ITO asked a few questions. This shows lack of preparedness , determination and firm commitment about what was claimed in a revised return. I think Amitabh ji had no such set back and failure in any other matter. This is because he relied on his tax team and with due respect I feel that his tax team did not work sincerely and diligently. Having made a claim, the tax team should have courage to fortify the same and press the same in appeals otherwise it is a clear case of carelessness.
amitabh will win, will any other aam admi have a similar win
This case is an eye-opener and we learn to be very serious, while preparing return of income and making claims. The tax practitioners also need to learn to be very careful in such matters. In case a tax professional is asked for to compensate for the damages due to his carelessness and casual approach, he may be in great trouble.
Considering the financial and social status as well as amount of returned and assessed income we can very safely and strongly presume that the income-tax matters of Super Star Shri Amitabh Bachchan are dealt with expert guidance of top tax experts. In such circumstances we find a pointer of certain claims made by him in a very casual and careless manner so that he had to withdraw claim just when the junior most authority in process of assessment that is the Assessing Officer started inquiry and asked him to substantiate his claim which was made in a revised return,
First we can assume that there was carelessness while filing original return in a manner that a possible claim of Rs.631 lakh was not preferred. And then the claim was made in a revised return of income.
In such circumstances, if the assessee withdraw his claim just when the AO start making enquiry, it is another pointer of a situation of carelessness and casual approach while making claim in a revised return.
Such approach should be avoided at all costs and in all circumstances. Otherwise assessee may land into great trouble because such cases can be very serious case in which charge of concealing income can prove by the conduct of assessee himself.