Assessee, a SPV for the BOT road project assessed under scrutiny without addition. The assessment was reopened on alleged escaped income due to interest-free advances to the EPC contractor. Tribunal held that reassessment was without any fresh information or material being provided by the Assessing Office and was based merely on a change of opinion and hence quashed. The cross objection of the assessee was allowed. As regards the notional interest, the Tribunal held that the assessee executing a BOT road project gave interest-free advances to the EPC contractor as per the contract and industry practice, and had not claimed any related interest expenditure as a deduction nor earned or accrued notional interest. The addition of notional interest as business income was unsustainable since tax cannot be levied on hypothetical income. Order of CIT(A) deleting the notional interest was affirmed. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147: Reassessment-Change of opinion-Interest-free advances-No fresh information-Reassessment was quashed-Notional Interest-Order of CIT(A) deleting the notional interest was affirmed. [S. 4, 28(i),37(1), 143(3), 148] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61447","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fZ5","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=61447"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61447\/revisions"}],"predecessor-version":[{"id":61448,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61447\/revisions\/61448"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}