Home › Tax Laws › Multi Commodity Exchange of India Ltd. v. DCIT(2018) 304 CTR 551 / 168 DTR 217 /91 Taxmann.com 265 (Bom.)(HC)Editorial: SLP of assessee is dismissed Multi Commodity Exchange of India Ltd .v. DCIT ( 2019) 260 Taxman 243 (SC).

Multi Commodity Exchange of India Ltd. v. DCIT(2018) 304 CTR 551 / 168 DTR 217 /91 Taxmann.com 265 (Bom.)(HC)Editorial: SLP of assessee is dismissed Multi Commodity Exchange of India Ltd .v. DCIT ( 2019) 260 Taxman 243 (SC).

S. 147 : Reassessment – After the expiry of four years – Special audit report subsequent to assessment indicated claims made by the assessee for deduction and expenditures were excessive -Prima facie, no benefit of first proviso to S. 147to assessee –Order disposing objections – Considered to be valid if each objection has been considered and found unacceptable – Reopening sustainable.[ S.142(2A) ,148 ]

Held  by the High Court that:

  • Basis special audit report, the AO was of the opinion that assessee’s claim for deduction / expenditures are excessive, hence it cannot be said that AO did not have reasonable belief.
  • Though criminal proceedings initiated on the basis of the special audit report was quashed by HC, the considerations which come into play in criminal and tax proceedings are entirely different.
  • Order disposing objections cannot be said to be suffering from non-application of mind ifAO has dealt with such objections in some detail in as much as each objection has been considered and found unacceptable.(AY .2010 -2011)