ARPITA JENA,BHUBANESWAR V. ITO, WARD 3(1),BHUBANESWAR, BHUBANESWAR

ITA 585/CTK/2025

AI Insights

This case involves an appeal by Arpita Jena against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2016-2017. The primary issue arose from the reassessment notice issued under section 148 of the Income Tax Act, 1961, by the AO, which was based on the sale of an immovable property by the assessee. The assessee contended that the reassessment was improperly conducted as the additions made were not related to the reasons for which the reassessment was initiated. The Tribunal referenced decisions from the Supreme Court and the Madras High Court to support its conclusion that the reassessment was invalid due to the lack of a fresh notice following the unavailability of the original grounds for reassessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833582 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 25-10-2025
• Other Referred Cases: Jet Airways (I) Ltd. vs. Income Tax Department, Anand Cine Services (P) Ltd. vs. Income Tax Department
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: MISS SARMILA AGARWAL
• Keywords: Reassessment proceedings
• Section: 147

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.585/CTK/2025 (नििाारण वर्ा / Assessment Year : 2016-2017) Arpita Jena, A-60, Palashpalli, Bhubaneswar-751020 Dist : Khurda, Odisha Vs ITO, Ward-3(1), Bhubaneswar PAN No. : ANEPJ 7345 N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Miss Sarmila Agarwal, CA राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr. DR सुनवाई की तारीख / Date of Hearing : 02/02/2026 घोषणा की तारीख/Date of Pronouncement : 02/02/2026 आदेश / O R D E R Per George Mathan, JM : This is an appeal filed by the assessee against the order dated 20.08.2025 passed by ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2016-2017. 2. It was submitted by the Ld.AR that the assessee had purchased a property for Rs.79,00,000 in September 2015 and had sold the same on 7th September 2015 on consideration Rs.75,00,000/-. The assessee had not filed its return for the impugned assessment year as the assessee did not have taxable income. The AO issued notice u/s.148 of the Act on the ground that the assessee had sold the immovable property for Rs.75,00,000/- as return had not been filed. The reasons recorded is as follows:- Printed from counselvise.com ITA No.585/CTK/2025 2 Printed from counselvise.com ITA No.585/CTK/2025 3 Printed from counselvise.com ITA No.585/CTK/2025 4 3. It was the submission that the assessee had responded the same on 17/03/2023 wherein all the details were mentioned which reads as follows:- Printed from counselvise.com ITA No.585/CTK/2025 5 Printed from counselvise.com ITA No.585/CTK/2025 6 4. It was the submission that the AO did not accept the response of the assessee and had reopened the assessment and completed the assessment. It was submission that in the assessment no addition has been made on account of the reasons recorded for the purpose of the reopening. It was submission that the addition has been made in respect of the source for the purchase of property. It was submission that the in view of the decision of the Hon’ble Supreme Court in the case of Jet Airways (I) Ltd., reported in (2011) 331 ITR 236 (Bom) and the decision of the Hon’ble Madras High Court in the case of Anand Cine Services (P) Ltd., reported in (2024) 8 NYPCTR 284 (Mad), wherein the Hon’ble Madras High Court has categorically held that section 147 of the Act enables the Assessing Officer to travel beyond the reasons for initiating reassessment proceedings provided such reassessment is also carried out on the grounds or reasons on which reassessment was initiated. On the other hand, if the ground on Printed from counselvise.com ITA No.585/CTK/2025 7 which reassessment was initiated was no longer available to the Assessing Officer, reassessment cannot be continued on the basis of the original notice u/s.148 of the Act and that a fresh notice is necessary. The AO having not made any addition on the basis of the reasons on which the reopening was done, the reopening is held to be bad in law and consequently quashed. Accordingly, the consequential assessment order also stands quashed. 5. In the result, the appeal of the assessee is allowed. Order dictated and pronounced in the open court on 02/02/2026. Sd/- (LAXMI PRASAD SAHU) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 02/02/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "