S. 147 : Reassessment-After the expiry of four years-Mutual fund Spill over expenses, offer expenses, SEBI Registration fee-On the same set of facts reassessment order is bad in law-Assessing Officer has no power to review the assessment order-Order of reassessment was quashed. [S. 148]
The assessment of the assessee was completed under section 143(3) of the Act. In the course of the original assessment proceedings, the Assessing Officer has asked a specific question on the allowability of Mutual fund Spill over expenses, offer expenses and SEBI Registration fee. After satisfying the explanation of the assessee no disallowance was made. The Assessing Officer issued notice u/s 148 on 26-3-2013 and passed the assessment order disallowing the expenses referred to above. The order was affirmed by CIT(A). On appeal, the Tribunal held that the Assessing Officer in reassessment proceedings cannot take the view that the view of the Assessing Officer allowing the claim in the original proceedings was the incorrect view. The Tribunal held that the Assessing Officer has no power to review the assessment order. Accordingly, the reassessment order was quashed. Relied on CIT v. Financial Software and Systems ( P) Ltd ( 2022) 447 ITR 370/145 taxmann.com 37 (SC), PCIT v. Fibres and Fabrics International (P) Ltd. (2022) 139 taxmann.com 562 / 288 Taxman 20 (SC), Dy CIT v. Bajaj Life Insurance Company Ltd. (2021) 278 Taxman 104 / 125 taxmann.com 71 (SC) (ITA No. 1774/Mum/ 2022 dt. 24 -1 -2023 ( AY. 2007 -08 )
JM Financial Asset Management Ltd v. DCIT (Mum.)(Trib.) www.itatonline .org
[Coram : Hon’ble Shri Kuldip Singh, Judicial Member and Hon’ble Shri Gagan Goyal, Accountant Member]