Section 37(1) & 147 of the Income-tax Act, 1961—Business expenditure—AO cannot reopen the assessment as scrutiny assessment had gone into the taxability of amounts in question.

Facts: The Revenue is aggrieved by the order of the Tribunal rejecting its appeal. The assessee had questioned the reassessment proceedings under sections 147/148 on the ground that the reasons to re-open the assessment proceedings for AY 2002-03 amounted to a second opinion or review of the previous view expressed.

Held, that Court is of the opinion that the impugned order is sound and reasonable and in accord with the judgment of the Supreme Court. Further, in somewhat circumstances, where reassessment proceedings were sought to be initiated on the ground of expenditure wrongly allowed in ignorance or overlooking Southern Switchgears (supra), this Court in Xerox Modicorp Ltd. v. Dy. CIT [2013] 29 taxmann.com 417/213 Taxman 285/350 ITR 308 (Delhi) held that reassessment proceedings were unauthorised by law. No substantial question arises. - PR. CIT V/s MOSER BAER INDIA LTD. - [2019] 10 ITCD Online 78 (DEL)