COMMISSIONER OF INCOME TAX Vs. TRIMURTI BUILDERS

JUDGEMENT

(1.) This appeal is directed against an order passed by the Tribunal, Indore Bench, Indore Annex. A/3 dt. 29th May, 2009 by which the second appeal preferred by the assessee was allowed and the Tribunal found that there was no sufficient material before the AO for reopening of the assessment under ss. 147 and 148 of the IT Act. The learned counsel appearing for the appellant submitted that the AO and the CIT(A)-1, Bhopal both have found that there was sufficient material for reassessment under s. 148 of the IT Act. The CIT(A)-I in para 2 of the order found that there was sufficient material before the AO for reopening of the assessment and to reassess the assessee. It is submitted that the Tribunal erred in reversing the aforesaid findings. It is further submitted by Shri Lal that substantial question of law No. 3 as framed in the memo of appeal arises for consideration of this Court.

(2.) To appreciate the aforesaid contention, we have perused the order passed by the three authorities. The asst. yr. 2001-02 is involved in the matter. The respondent was assessed under s. 143(1) of the IT Act in respect of the return filed by the assessee on 5th Oct., 2001, which was accepted by the Department.

(3.) Thereafter the AO found that there were certain points for reopening of the aforesaid assessment under s. 147 of the Act and directed issuance of the notice under s. 148 of the IT Act. The assessee objected that there were no sufficient reasons for reassessment. However, the contention of the assessee was turned down and the assessment was reopened. The AO after disallowing the expenses of Rs. 7,95,271 enhanced the income of the assessee and directed for reassessment of the income.