Case Law Details
DCIT Vs IOT Anwesha Engineering and Projects Ltd. (ITAT Ahmedabad)
ITAT Ahmedabad held that initiation of reassessment proceedings under Section 148 of the Income Tax Act on the same issue/ claim which was already decided and accepted during the course of regular assessment, without bringing any new material facts on records, is not valid as per law.
Facts- The assessee company is engaged in the business of fabrication and erection, e-filed its return of income through electronic media declaring total income Rs. 2,67,91,420/-, which was initially processed u/s. 143(3) of the Act dated 29.11.2011. The assessment was finalized upon determining the total income at Rs. 2,69,50,080/- and subsequently revised at Rs. 2,67,91,420/- on 03.10.2013 in terms of the appeal order passed by the CIT(A) on 02.08.2013.
Subsequently, the assessment proceeding u/s. 147 of the Act was initiated upon taking approval from the CIT and notice dated 27.02.2015 u/s. 148 of the Income Tax Act was served upon the assessee on 03.03.2015.
Notably, the assessee claimed expenses to the extent of Rs.1,27,92,992/- on account of duties and taxes out of which a sum of Rs.62,92,692/- pertained to claim of expenses on account of VAT payment. In fact, the assessee paid VAT of Rs.5,31,615/- by 31.03.2008. The balance amount remained unpaid and shown as outstanding liability as on 31.03.2008 and neither the said amount of Rs.57,61,077 was paid before the due date of filing of return. Show cause notice u/s. 142(1) of the Act, therefore, was issued to the assessee to show as to why disallowance of Rs. 57,61,077/- may not be made in view of provisions of Section 43B of the Income Tax Act. Not being satisfied, AO added the impugned amount u/s. 143(3) r.w.s. 144C(3).
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