CIT Vs. MEENAKSHI NARAYANAN INVESTMENTS (P) LTD

JUDGEMENT

(1.) The above tax case appeal is directed against the order of the Tribunal in ITA No. 764/Mad/2005, for the assessment year 1997-98.

(2.) The revenue is the appellant. During the relevant assessment year, viz., 1997-98, the assessee filed a return declaring loss of Rs. 9.58 lakhs. But, thereafter, the assessee filed a revised return declaring a total income of Rs. 95.32 lakhs. On completing the assessment, the assessing officer accepted the claim of the assessee for exemption of non-competition fee. But, later, a notice under Section 148 of the Act was issued, as the assessing officer had reason to believe that income chargeable to tax had escaped assessment. After the order of reassessment had been passed, the assessing officer found that the "hire-purchase management fee" and "syndication fee" had escaped assessment. After taking note of the objections of the assessee, the assessing officer passed the order of reassessment dated 25-5-2004. Aggrieved against the same, the assessee filed appeal before the Commissioner (Appeals), who, by order dt. 25-1-2005, confirmed the order of the assessing officer holding that re-opening of assessment is valid and thus, dismissed the appeal. Against the said order of the CIT, the assessee filed an appeal before the Tribunal and the Tribunal, by its order dated 17-11-2006, without going into the merits of the case, held that assessment was reopened on change of opinion and there was no failure on the part of the assessee to disclose material facts which would justify the reopening beyond four years. Against the said order of the Tribunal, the revenue has preferred the above appeal raising the following substantial questions of law:

(3.) Heard Mr. J. Naresh Kumar, learned standing counsel appearing for the revenue, who fairly submits that the issues raised in this appeal is squarely covered against the revenue by the decision of this Court in the assessee's own case in T.C.(A) Nos. 2680 and 2681 of 2006 by judgment dated 14-12-2006.