COMMISSIONER OF INCOME TAX TAMIL NADU I MADRAS Vs. TAMIL NADU TRANSPORT DEVELOPMENT FINANCE CORPORATION LIMITED TAMIL NADU TOURISM COMPLEX IV FLOOR NEAR KALAIVANAR ARANGAM

JUDGEMENT

(1.) THIS appeal is filed under Section 260A of the Income Tax Act, 1961 by the Revenue, against the order of the Income Tax Appellate Tribunal, Chennai Bench 'C', Chennai in I.T.A. No.1726/Mds/2004 dated 19.01.2007, raising the following substantial question of law:-

(2.) THE facts leading to the above substantial question of law are as under:- THE assessee is a Company. It is a Government of India Undertaking. THE relevant assessment year is 1997-98 and the corresponding accounting year ended on 31.03.1997. Regular assessment was completed on 30.03.1999 under Section 143(3) of the Income-tax Act ("Act" in short), determining the income at Rs.11,40,72,670/-. Subsequently it was noticed that the interest accrued and receivable by the assessee company from another company, viz., M/s.Tamil Nadu State Civil Construction Corporation Limited amounting to Rs.148.69 lakhs, was omitted to be brought to tax. In view of the same, notice under Section 148 of the Act was issued on 24.06.2003. THE assessee had sent a reply stating that Return of income filed earlier could be treated as filed in response to the notice under Section 148 of the Act. THE information regarding interest accrued and receivable from M/s.Tamil Nadu State Civil Construction Corporation Limited was very much available in the 22nd Annual Report of the assessee company, which was filed along with the original Return of income. THE Assessing Officer completed the reassessment under Section 143(3) r/w Section 147 of the Act by including interest accrued and receivable from M/s.Tamil Nadu State Civil Construction Corporation Limited. Aggrieved by the reopening of the assessment, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). THE C.I.T.(A) accepted the contention of the assessee and allowed the appeal and held that reopening of the assessment under Section 148 is bad in law. Aggrieved, the Revenue filed an appeal to the Income-tax Appellate Tribunal ("Tribunal" in short). THE Tribunal dismissed the Revenue's appeal and confirmed the order of the C.I.T.(A). Hence the present appeal by the Revenue.

(3.) IN view of the foregoing reasons, no substantial question of law arises for consideration of this Court and accordingly, the tax case is dismissed. No costs.