Case Law Details
Kurz India Private Limited Vs PCIT (Delhi High Court)
Appellant submits that in this case reopening is initiated on the basis of review and re-appreciation of the same material i.e. audited accounts which were subject to verification in the course of original assessment proceedings under Section 143(3) which is not permissible in law.
Upon perusal of the paper book, this Court finds that the order dated 27th December, 2021 disposing of the objections filed by the petitioner does not deal with any of the contentions or submissions advanced by the petitioner.
In fact, the impugned order is based on the premise that the contingent liability has been claimed as revenue expense. In the opinion of this Court, the said reason is contrary to the facts as well as to the concept of contingent liability which is only required to be disclosed by way of a note in accordance with the requirement of applicable Accounting Standards.
The impugned order disposing objections dated 27th December, 2021 also suffers from complete non-application of mind, as there are a lot of repetitions in the impugned order.
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