Bhartiya Samruddhi Investments And Consulting Services Limited Vs ACIT (ITAT Delhi)
ITAT Delhi held that mere change of opinion would not confer jurisdiction upon the Assessing Officer to reopen proceedings without anything further. Thus, reopening of assessment under section 147 of the Income Tax Act set aside.
Facts- It was noted by the AO that expenditure of Rs. 91,47,928/- claimed as ‘sundry advances/ assets written off’ was debited to the Profit and Loss account. AO observed that the said expenditure being capital in nature should have been added back to the income of the assessee company. AO further noted that the assessee did not furnish details of expenditure of Rs. 91,47,928/- claimed on account of ‘Sundry advances / assets written off’ during assessment proceedings for AY 2012-13, which resulted in over assessment of loss of Rs. 91,47,928/- by reason of failure on part of the assessee. Notice u/s. 148 of the Act was issued on 31.03.2019 after having recorded the reasons thereof u/s. 147 of the Act and after obtaining the sanction u/s. 151 of the Act from the competent authority.
AO disallowed the amount of Rs. 91,47,928/-. CIT(A) confirmed the action of AO. Being aggrieved, the present appeal is filed.
