Rural Electrification Corp. Ltd., New ... vs Department Of Income Tax

DCIT, vs. Rural Electrification Corp. Ltd. New Delhi. Core-IV, Scope Complex, 7, Lodhi Road, New Delhi. (PAN AAACR4512R) (Appellant) (Respondent)

Appellant by : Shri Vikram Sayay, Sr. DR Respondent by : Shri Mayank Mohanka, FCA

ORDER

PER I.C. SUDHIR, JUDICIAL MEMBER

The revenue has impugned first appellate order whereby the Ld. CIT(A)

has quashed the order of the assessment made by the AO u/s 147/143(3) of the

Act.

2. Heard and considered the arguments advanced by the parties in view of

orders of the authorities below, material available on record and the decisions

relied upon.

3. Like the assessment year 2004-05 in the present assessment year also the

reopening proceedings have been initiated on the basis that the assesee had 2 ITA No. 6098/Del/2013

treated bond issues expense as revenue which the AO held as capital in nature.

In both the years, the reopening of assessment has been made four years after

the end of assessment year and before six years of the end of assessment year.

AO while recording the reasons has not recorded that the alleged escapement of

income in the matter was by reasons of the assessee having made full and true

disclosures in the return of income. The original assessment was framed u/s

143(3) and the notice u/s 148 was issued beyond the period of four years from

the end of the assessment year. Ld. CIT(A) respectfully following the decision of

Hon'ble Jurisdictional Delhi High Court in the case of assessee itself for the

assessment year 2004-05 vide order dated 23.4.2013 in WP(C)7943/2011 has

held that the AO was required to record a finding in the reasons that the alleged

escapement of income was due to the assessee's failure to disclose all material

facts fully and truly in the return of income. The Ld. CIT(A) has accordingly held

the impugned order of reassessment in the present case as bad in law and has

quashed it accordingly.

4. In absence of rebuttal of the above finding of the Ld. CIT(A) that while

recording the reasons the AO has not recorded that the alleged escapement of

income in the matter was by reasons of the assessee not having made fully and

truly disclosure in the return of income, we are of the view that the Ld. CIT(A)

has rightly held the reassessment in question as invalid and quashed it

respectfully following the ratio laid down by the Hon'ble Jurisdictional Delhi High 3 ITA No. 6098/Del/2013

Court in the case of assessee itself on an identical issue for the assessment year

2004-05. The same is upheld. The ground is accordingly rejected.

5. In the result appeal is dismissed.

Order pronounced in the open court on 30th April, 2015.

sd/- sd/- (INTURI RAMA RAO) ( I.C. SUDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER

Date 30th April, 2015

*Veena

Copy of order forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR By Order Assistant Registrar, ITAT