ASSISTANT COMMISSIONER OF INCOME TAX Vs. HAMOSONS EXPORT P LTD
LAWS(IT)-1993-10-17
INCOME TAX APPELLATE TRIBUNAL
Decided on October 13,1993

Appellant
VERSUS
Respondents

JUDGEMENT

A. Satyanarayana, Accountant Member - (1.) 1 - This appeal filed by the revenue is against the order of the CIT(A) dated 9-11-1988 for the assessment year 1982-83 for which the previous year ended on 30-6-1981.
(2.) The assessee is a private limited company. For the assessment year 1982-83, the assessee filed a return of income showing an income of Rs. 3,43,108 before adjustment of loss of earlier years. The assessee has filed a revised return on 17-9-1983 showing an income of Rs. 4,00,108 before adjustment of loss of earlier years. The assessment was completed under Section 143(3) on 13-8-1984. The total income was determined at Rs. 4,03,770 by disallowing an amount of Rs. 3,666 under Section 35B. Subsequently, on 25-3-1988, the Assessing Officer passed an assessment order under Section 143(3), read with Section 147(b) of the Income-tax Act, 1961. In the course of the said reassessment order, the Assessing Officer stated that notice under Section 148 was issued on information that income chargeable to tax had escaped assessment. In the reassessment order, the Assessing Officer disallowed Rs. 29,442 from the foreign buyers' entertainment expenditure of Rs. 34,442. Against the reassessment order dated 25-3 1988. the assessee preferred an appeal before the CIT (Appeals).
(3.) BEFORE the CI'T(A), objecting to the reassessment, it was pointed out that no new information had come: into the possession of the Assessing Officer, that in the course of the original assessment proceedings it had been disclosed that foreign buyers had been entertained and an expenditure of Rs. 34,442 had been incurred, that no part of the said expenditure had been disallowed while completing the original assessment and that the reopening of the assessment was based on a change of opinion. The re-assessment order was cancelled by the CIT(A) by observing as under: I see no reason to differ from the aforesaid contention. The records clearly show that the foreign buyers' entertainment expenditure had been disclosed in the statement filed during the course of the original assessment proceedings. The conclusion that Section 37(2A) should have been applied to this expenditure is not based on any new material but on a reappraisal of the existing facts. The order under appeal is, therefore, cancelled. The revenue is aggrieved over this.;


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