Shanti Prime Publication Pvt. Ltd.
Sec. 147 of Income Tax Act, 1961—Reassessment --- Assessee filed appeal against the order of CIT(Appeals). For the A.Y. 2014-15, the assessee filed its return of income, claiming deduction u/s. 80P (2)(a)(i) of the Act. The assessee’s case was selected for scrutiny and the assessment was completed U/s 143(3) of the I.T.Act accepting the returned income. On examination of the financial statements of the assessee, the AO noticed that the assessee had earned interest on FDs kept with Scheduled banks, which had to be taxed as income from other sources u/s 56 the Act. A notice u/s 148 of the Act dated 03.11.2017 was issued by the AO, directing the assessee to file the return of income. In response, the assessee filed a letter dated 22.11.2017 requesting the AO to treat the return of income filed on 30.11.2014 as its return filed u/s 148 of the Act. The assessee requested for copy of the reasons recorded which were furnished to it. The assessee filed its objections to the reasons recorded, which the AO disposed of. Notice u/s 143(2) dated 30/05/2018 was served on the assessee. During the reassessment proceedings, the AO disallowed the claim of deduction u/s 80P(2)(a)(i) of the I.T.Act to the extent of interest income earned from deposits kept in Nationalised Banks and Co-operative Banks. The order of the Assessing Officer, assessee carried the matter in appeal before the CIT(A), who confirmed the reopening of assessment and also decided the issue against the assessee. Against this, the assessee was in appeal before the Tribunal. . The reassessment in this case was made to withdraw deduction u/s 80P of the Act by treating the interest income under the head “income from other sources” instead of “business income”. This is nothing but change of opinion. On mere change of opinion, the concluded assessment cannot be reopened. Therefore. The tribunal cannot upheld the action of the reopening of the assessment. Accordingly Tribunal quashed the reassessment order and allowed the appeal filed by the assessee. --- AKSHAYA SOUHARDA CREDIT COOPERATIVE LIMITED vs. ITO. 23 ITCD Online 44 (BANG)