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PM-STIAC discusses accelerating Industry-Academia Partnership for Research and InnovationIndia, Singapore hold dialogue over cyber policy44 bids received under 10th Round of Commercial Coal Mine AuctionsCops arrest former Dy PM of Nepal in cooperative fraud casePuri highlights India's Petrochemical potential at India Chem 2024UN reports record high cocaine production in ColombiaMinister unveils 'Aviation Park' showcasing India's Aviation HeritageED finds PFI wanted to start Islamic movement in IndiaBlocking Credit - Rule 86ASEBI says investors can use 3-in-1 accounts to apply online for securitiesI-T- Penalty u/s 271(1)(b) need not be imposed when assessee moved an adjournment application & later complied with notice u/s 142(1): ITAT4 Kanwariyas killed as vehicle runs over them in Banka, BiharI-T- Accounting principles do not prescribe maintaining of a day-to-day stock register, and the books of accounts cannot be rejected on this basis alone: ITATUN food looted and diverted to army in EthiopiaCus - Alleged breach of conditions for operating public bonded warehouse; CESTAT rightly rejected allegations, having found no evidence of any such breach: HCUS budget deficit surges beyond USD 1.8 trillionST - Onus for proving admissibility of Cenvat Credit rests with service provider under Rule 9(6) of the Cenvat Credit Rules, 2004: CESTATIf China goes into Taiwan, Trump promises to impose additional tariffsRussians love Indian films; Putin lauds BollywoodCus - Classification of goods is to be determined in accordance with Customs Tariff Act & General Interpretative Rules; Country-of-Origin Certificate may offer some guidance, but cannot solely dictate classification: CESTATCus - Benefit of such Country-of-Origin certificates cannot be denied if all relevant conditions are met under the applicable Customs Tariff rules: CESTATCuban power grid collapses; Country plunges into darknessCus - As per trite law, merely claiming a classification or exemption does not constitute mis-declaration or suppression - any misclassification does not equate to willful intent to evade duty: CESTATKarnataka mulling over 2% fee on aggregator platforms to bankroll gig worker welfare fundCus - Extended limitation cannot be invoked in case of assessee who is a regular importer with a consistent classification approach: CESTAT
 
I-T - Completion of scrutiny assessment will not prevent AO from initiating reopening, if assessee has accepted non-disclosure of certain income during scrutiny which was not taken into consideration: HC

 

By TIOL News Service

CHENNAI, JAN 07, 2019: THE ISSUE BEFORE THE DIVISION BENCH IS - Whether completion of scrutiny assessment will prevent the AO from initiating reopening, when assessee has accepted non disclosure of certain income during scrutiny and hence, same was not taken into consideration during scrutiny. NO IS THE VERDICT.

Facts of the case:

The assessee company had filed its return for the relevant assessment year. Thereupon, after conducting a survey, the assessment was completed accepting the returned income. However, long after that, the reopening notices u/s 148 came to be issued seperately, by relying upon a statement recorded from the Managing Director of the assessee during the survey proceedings. On appeal, both the CIT(A) as well as the ITAT, upheld the validity of reopening notice. The assessee had therefore approached this Court, contending that the reopening was a clear case of change of opinion and that there was no allegation that the assessee had failed to fully and truly disclose all the details.

High Court held,

++ in the considered view of this Court, the CIT(A) as well as the Tribunal rightly appreciated the factual position and noted that the scrutiny assessment was taken up since the survey u/s 133A was conducted and that during such scrutiny assessment, the statement recorded from the Managing Director of the assessee was not taken into consideration by the AO. Therefore, there was no opinion formed by AO on the said issue under the head of income. Further, the assessee themselves accepted that the income was earned, but not disclosed in the returns. Accordingly, the reopening was confirmed;

++ with regard to the contention of the assessee that there was a full and true disclosure by the assessee, on facts, it is found that in the instant case, the reopening has been done based on the statement given by the Managing Director of the assessee during the survey. It is not the record of assessee that they disclosed it in the returns. Hence, on facts, the AO, the CIT(A) and the Tribunal clearly held that the reopening was not a change of opinion.

(See 2019-TIOL-50-HC-MAD-IT)


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