ARYA INFRAHOUSING PRIVATE LIMITED,AGRA V. THE PRESCRIBED AUTHORITY, NFAC, DELHI, ITO2(1)(1), AGRA, AGRA

ITA 190/AGR/2024

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The case involves Arya Infrahousing Pvt. Ltd., which did not file its income tax return for the assessment year 2013-14. Following information about credit entries from certain entities, the Income Tax Officer (ITO) reopened the case and issued a notice under section 148. The assessee filed a return declaring nil income, which was followed by a notice under section 142(1) to substantiate the credits. The ITO added the amounts received as unexplained credits under section 68 and estimated a commission under section 69C, leading to an assessment that was challenged before the CIT(A) and subsequently before the Tribunal. The Tribunal's decision to quash the assessment was based on the procedural invalidity of the notice issued.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25460 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Other Referred Cases: UOI vs. Ashish Agarwal (CA No.2005/2022)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHRIVASTAVA LD.
• Assessee Lawyers: DEEPENDER MOHAN LD
• Keywords: Competent authority
• Section: 148; 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.190/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2013-14) Arya Infrahousing Pvt. Ltd. 170A, Vishwakarma Complex Jaipur House, Agra 282 010 बनाम/ Vs. ITO 2(1)(1) Agra ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AALCA-1483-B (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Deepender Mohan (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 20-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013-14 arises out of an order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 15-09-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144B r.w.s. 147 of the Act on 29-03-2022. Having heard vehement arguments of both the sides and upon perusal of case records, the appeal is disposed-off as under. The registry has noted delay of 182 days in the appeal which stand condoned. 2. The assessee did not file its return of income for the year. Pursuant to receipt of information that the assessee stood beneficiary of credit entries from certain entities, the case was reopened u/s 147 and a notice u/s 148 dated 31-03-2021 was issued to the assessee. The assessee 2 filed return of income on 23-12-2021 declaring nil income. The same was followed by notices u/s 142(1) wherein the assessee was directed to substantiate the said credits. It was alleged by Ld. AO that the assessee received credit entries of Rs.195 Lacs from M/s Pawansut Housing Holding Ltd. (PHHL) and another credit entry of Rs.25 Lacs from M/s Junoon Capital Services Pvt. Ltd. (JCSPL). During the course of assessment proceedings, the assessee furnished various explanations and documentary evidences. The assessee stated the funds were used in business activity and the loans were repaid in subsequent years. In support, the assessee furnished account statement, assessment order, financial statements, income tax computations, confirmation of accounts etc with respect to both the entities. However, primarily going by the investigation findings, Ld. AO added both the amounts u/s 68. The Ld. AO also estimated commission of 2.5% against these items which resulted into another addition of Rs.5.50 Lacs u/s 69C. Finally, the assessment was framed which was subjected to assessee’s further challenge before Ld. CIT(A). The Ld. CIT(A) confirmed the same for want of submissions from the assessee. Aggrieved, the assessee is in further appeal before us. 3. The Ld. AR, at the outset, raised a pertinent legal issue and stated that notice u/s 148 though dated 31-03-2021, it was issued only on 01- 04-2021 and therefore, the same was clearly time barred. The Ld. AR referred to subsequent notice issued by Ld. AO u/s 148A(b) on 25-05- 2022, vide DIN and letter No. ITBA/COM/F/17/2022-23/1043159096(1) pursuant to the decision of Hon’ble Supreme Court in the case of UOI vs. Ashish Agarwal (CA No.2005/2022) holding that notices issued during the extended period 01-04-2021 to 30-06-2021 shall be deemed to be 3 issued u/s 148A of the Act and was to be construed as notice issued in terms of Sed.148A(b) of the Act. In second para, Ld.AO has stated as under: - “The notice u/s 148 of the Income Tax Act, 1961 in your case was issued on 31.03.2021 for the A.Y.2013-14 with the prior approval of the competent authority u/s 152 of the Income Tax Act, 1961 and sent on 01.04.2021 through registered post. Therefore, your case is covered by the above-mentioned judgment. As such, I am enclosing herewith the relevant documents relied upon for issuing notice u/s 148 in your case for the A.Y.2013-14 (Annexure enclosed).” Pursuant to the same, an order u/s 148A(d) has been passed on 31-07- 2022 which is followed by notice u/s 148 on the same day. 4. The above facts remain uncontroverted before us. It is quite clear that fresh proceedings have been initiated against the assessee on the same issue pursuant to the decision of Hon’ble Apex Court in the case of UOI vs. Ashish Agarwal (CA No.2005/2022). This being the case, the impugned assessment so framed by Ld. AO would not survive. The notice is clearly issued on 01-04-2021 and the proceedings would thus be nullity in view of subsequent decision of Hon’ble Supreme Court. The parallel proceedings could not continue against the assessee. Therefore, we quash the impugned assessment order. 5. The appeal stand allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER 4 Dated: 28-03-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "