CIT v. Kelvinator of India Ltd.

DCIT, New Delhi vs. M/S Smcc Construction India Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

Bench: Shri N.K. Saini & Shri A.T. Varkey

…the assessments under s. 147 for assessment years 2007-08 and 2008-09 is contrary to law. The notices issued under s. 148 for the aforesaid years are quashed and set aside - CIT Vs Kelvinator of India Ltd. (2010) 228 CTR (SC) 488: (2010) 34DTR (SC) 49: (2010) 320 ITR 561 (SC) In the case of Commissioner of Income-tax Vs Purolator India Ltd. [2012] 343 ITR 155 (Delhi High Court) it is held that:- "... One of the jurisdictional pre-conditions for reopening of an assessment after four years is that there should be failure on the part of the assessee to disclose material facts necessary for assessment. The expressi…

Dct, New Delhi vs. M/S State Farms Corporation of India Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

Bench: Shri N.K. Saini & Shri A.T. Varkey

…the assessments under s. 147 for assessment years 2007-08 and 2008-09 is contrary to law. The notices issued under s. 148 for the aforesaid years are quashed and set aside - CIT Vs Kelvinator of India Ltd. (2010) 228 CTR (SC) 488: (2010) 34DTR (SC) 49: (2010) 320 ITR 561 (SC) The Assessing Officer was not correct in his action to assume jurisdiction over the appellant for the year under consideration. Additionally reasons recorded are based on Balance Sheet and Profit & Loss A/c furnished with return of income and was accepted in original assessment. It is a case of reappraisal of same facts. On which earlier Ass…

Commissioner of Income Tax-Central-I vs. M/S. Indo Arab Air Services

…escaped assessment it confers jurisdiction to reopen the assessment. It is, however, to be noted that both the conditions must be fulfilled if the case falls within the ambit of the proviso to section 147.” 18. In ACIT v. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC), it was 2015:DHC:8885-DB ITA Nos. 292 of 2015 & 299 of 2015 Page 10 of 14 pointed out as under: “However, one needs to give a schematic interpretation to the words “reason to believe" failing which, we are afraid, section 147 would give arbitrary powers to the Assessing Officer to reopen assessments…

Commissioner of Income Tax-Central-I vs. M/S. Indo Arab Air Services

…escaped assessment it confers jurisdiction to reopen the assessment. It is, however, to be noted that both the conditions must be fulfilled if the case falls within the ambit of the proviso to section 147.” 18. In ACIT v. Kelvinator of India Ltd. (2010) 320 ITR 561 (SC), it was 2015:DHC:8885-DB ITA Nos. 292 of 2015 & 299 of 2015 Page 10 of 14 pointed out as under: “However, one needs to give a schematic interpretation to the words “reason to believe" failing which, we are afraid, section 147 would give arbitrary powers to the Assessing Officer to reopen assessments…

M/S Veena Enterprises Ltd., New Delhi vs. ACIT, New Delhi

In the result appeal of the assessee is allowed

Bench: Sh. N. K. Saini, Am & Sh. H. S. Sidhu, Jm Ita No. 2517/Del/2013 : Asstt. Year : 2004-05 M/S Veena Enterprises Ltd., Vs Assistant Commissioner Of 81, Vigyan Vihar, Income Tax, Circle 17(1), New Delhi-110092 New Delhi (Appellant) (Respondent) Pan No. Aaacv3918K Assessee By : Sh. Ajay Vohra, Sr. Adv. Sh. Rohit Garg, Fca Sh. Deepesh Jain, Ca & Sh. Udit Naresh, Adv. Revenue By: Sh. J. P. Chandrakar, Sr. Dr Date Of Hearing : 15.07.2015 Date Of Pronouncement : 09.10.2015 Order Per N.K. Saini, A.M. This Is An Appeal By The Assessee Against The Order Dated 22.01.2013 Of The Ld. Cit(A)-19, New Delhi.

…O was not valid. A reference was made to page no. 30 of the assessee’s paper book which is the copy of the reasons recorded for reopening the assessment u/s 147 of the Act. The reliance was placed on the following case laws: " CIT Vs Kelvinator of India Ltd. 320 ITR 561 (SC) " CIT Vs Orient Craft Ltd. 354 ITR 536 (Del) " Mohan Gupta (HUF) Vs CIT (2014) 366 ITR 115 (Del) " Shipra Srivastava Vs ACIT 319 ITR 221 (Del) " Telco Dadajee Dhackjee Ltd. Vs DCIT, ITA No. 4613/Mum/2005 (TM) (Mum) order dated 12.05.2010 16. It was further submitted that all the information were furnished by the assessee to the AO. Therefore…

Coperion Ideal Private Limited vs. Commissioner of Income Tax-II

The appeal is allowed, but in the circumstances, with no orders as to

…ITA No.557 of 2015 Page 1 of 8 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 14 + ITA 557/2015 COPERION IDEAL PRIVATE LIMITED ..... Appellant Through: Mr. Salil Kapoor and Mr. Sumit Lalchandani, Advocates. versus COMMISSIONER OF INCOME TAX-II ..... Respondent Through: Mr. N.P. Sahni, Senior Standing counsel With Mr. Nitin Gulati, Advocate. CORAM: DR. JUSTICE S.MURALIDHAR MR. JUSTICE VIBHU BAKHRU O R D…

Coperion Ideal Private Limited vs. Commissioner of Income Tax-II

The appeal is allowed, but in the circumstances, with no orders as to

…ITA No.557 of 2015 Page 1 of 8 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 14 + ITA 557/2015 COPERION IDEAL PRIVATE LIMITED ..... Appellant Through: Mr. Salil Kapoor and Mr. Sumit Lalchandani, Advocates. versus COMMISSIONER OF INCOME TAX-II ..... Respondent Through: Mr. N.P. Sahni, Senior Standing counsel With Mr. Nitin Gulati, Advocate. CORAM: DR. JUSTICE S.MURALIDHAR MR. JUSTICE VIBHU BAKHRU O R D…

M/S. Veer Overseas Ltd., Karnal vs. ACIT, Karnal

In the result, appeal of the assessee is allowed

Bench: Sh. G.C.Gupta, V.P. & Sh. Prashant Maharishi, Am Ita No. 3599/Del/2013 : Asstt. Year: 2006-07

…ext day, he records the reasons for reopening of the assessment. Proceedings u/s 154 and u/s 147 clearly shows that assessing officer is changing his opinion on same set of facts within a short span of time. Further Hon SC in CIT V Kelvinator of India Limited 320 ITR 561 has held that after 1st April, 1989, AO has power to reopen the assessment under s. 147 provided AO has reason to believe that income has escaped assessment and there is tangible material to come to the conclusion that there is escapement of income; mere "change of opinion" cannot per se be reason to reopen. From the assessment order as well as t…

M/S New Delhi Television Ltd., New Delhi vs. ACIT, New Delhi

In the result, both the appeals of the assessee are allowed

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…. Law relating to change of opinion being not permissible for invoking proceedings u/s 147 of the Act is now well settled. Support in this regard can be derived from the decisions of Hon’ble Supreme Court in the case of CIT vs. Kelvinator of India reported in 320 ITR 561(SC) and the judgment of Delhi High Court in the case of Usha International Ltd. reported in 348 ITR 485(Del)(FB). Moreover after initiating reassessment proceedings doubting factum of export the AO thereafter in the reassessment order has accepted the submission of assessee on this issue in para 3.4 and restricted his findings only on the issue o…

New Delhi Television Ltd., New Delhi vs. CIT, New Delhi

In the result, both the appeals of the assessee are allowed

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

…. Law relating to change of opinion being not permissible for invoking proceedings u/s 147 of the Act is now well settled. Support in this regard can be derived from the decisions of Hon’ble Supreme Court in the case of CIT vs. Kelvinator of India reported in 320 ITR 561(SC) and the judgment of Delhi High Court in the case of Usha International Ltd. reported in 348 ITR 485(Del)(FB). Moreover after initiating reassessment proceedings doubting factum of export the AO thereafter in the reassessment order has accepted the submission of assessee on this issue in para 3.4 and restricted his findings only on the issue o…

Devendra Kumar, Bulandshahr vs. ITO, Bulandshahr

In the result, the appeal filed by the Assessee stand allowed

Bench: Shri H.S. Sidhu

…of the Act does not postulate conferment of power upon the Assessing Officer to initiate reassessment proceedings upon a mere change of opinion.” The aforesaid order has been affirmed by the Hon’ble Supreme Court in the case of CIT Vs Kelvinator of India Ltd. 320 ITR 561. 15. In the present case, also the AO while framing the original assessment, specifically, asked the assessee to furnish the details of the unsecured loans and the assessee gave the details by disclosing the name of the persons from whom loans were received and also furnished their PAN nos. alongwith the requisite details in the form of affidavit…

ACIT, New Delhi vs. M/S. Smcc Construction India Ltd., New Delhi

The appeal of the Revenue is dismissed

Bench: Sh. H.S.Sidhu, Jm & Sh. O.P.Kant, Am Ita No.4451/Del./2012 : Asstt. Year : 2006-07 Acit Vs Smcc Construction India Ltd. Circle-9(1), Room No. 163, 23, Local Shopping Centre, C.R. Building Madangir, New Delhi New Delhi (Appellant) (Respondent) Pan No. Aaacm7822P Appellant By : Sh. Sujit Kumar, Sr. Dr. Respondent By : Sh. Vikrant Suri, C.A. Date Of Hearing : 19.08.2015 Date Of Pronouncement : 23.09.2015 Order Per O.P.Kant, A.M. This Appeal Of The Revenue Is Directed Against The Order Dated 29Th May, 2012 Of Learned Commissioner Of Income-Tax (Appeals) - Xii, New Delhi Passed Under Section 250 Of The Income-Tax Act, 1961. The Revenue In Its Solitary Ground Has Raised That The Quashing Of Assessment Order By The Ld Commissioner Of Income-Tax (Appeals) By Recording A Perverse Finding That The Earlier Assessing Officer Has Applied Mind To The Royalty Expenses Being Revenue In Nature, Was Not Justified. 2. The Brief Facts Of The Case Are That The Assessee Company Is A Joint Venture Between Mitsui Construction Co. Ltd, Japan & M/S Kairali Construction, India & Was Engaged In Providing Engineering 2

…he Act does not postulate conferment of power upon the Assessing Officer to initiate reassessment proceedings upon a mere change of opinion. On appeal by the department to the Supreme Court, the Hon’ble Supreme court as reported in CIT V.s Kelvinator of India 320 ITR 561, dismissing the appeal, held as under: ―6. On going through the changes, quoted above, made to section 147 of the Act, we find that, prior to the Direct Tax Laws (Amendment) Act, 1987, reopening could be done under the above two conditions and fulfilment of the said conditions alone conferred jurisdiction on the Assessing Officer to make a back a…

Commissioner of Income Tax – II vs. Co. Ltd

…as escaped assessment. 2015:DHC:7971-DB ITA 356/2013 Page 13 of 32 13. The Supreme Court in CIT v. Kelvinator of India Ltd.: 320 ITR 561 (SC) emphasised that the expression “reason to believe” as used in Section 147 of the Act must be read in context of the scheme of the Act and cannot be interpreted in a manner as conferring arbitrary power on the AO. Thus, such ‘reason to believe’ must be based on ‘tangible material’ and not on a change of opinion. The relevant extract from…