AUTO PROFILES LIMITED,JHARKHAND V. DCIT CIRCLE-1, JHARKHAND

ITA 267/RAN/2023

AI Insights

The case involves Auto Profiles Ltd., which appealed against the order of the CIT(A), NFAC, Delhi, concerning the assessment year 2013-14. The primary contention was the validity of the notice issued under section 148 of the Income Tax Act for reopening the assessment, which was beyond the four-year period and lacked any mention of the assessee's failure to disclose material facts. The revenue argued that the case involved bogus share capital, supporting the original assessment. However, the Tribunal found that the reopening did not meet the legal requirements under section 147, specifically the proviso concerning the failure to disclose material facts, leading to the allowance of the assessee's appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716676 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 14-12-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PER BENCH; KHUBCHANDT PANDYA
• Assessee Lawyers: ANUP SHANGAI; ANAND HARATHKA
• Keywords: Bogus

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE S/ RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER Auto Profiles Ltd., C 35, IV Pase, Adityapur Industrial Area, PO: Gamharia, Seraikela, Jamshedpur PAN/GIR No. (Appellant Assessee by Revenue by Per Bench This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 13/10121574 for the assessment year 2. Shri Anup Shangai, FCA, Khubchand T Pandya, IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI S/HRI GEORGE MATHAN, JUDICIAL MEMBER RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA No.267/RAN/2023 Assessment Year : 2013-14 Auto Profiles Ltd., C-33, 34, 35, IV Pase, Adityapur Industrial Area, PO: Gamharia, Seraikela, Vs. DCIT, Circle Jamshedpur/AO, National Faceless Centre .AABCA 3931 A (Appellant) .. ( Respondent Assessee by : Shri Anup Shangai, FCA and Shri Anand Harathka, FCA Revenue by : Shri Khubchand T Pandya, Date of Hearing : 20/08/202 Date of Pronouncement : 20/08/2 O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 17.10.2023 in Appeal No.CIT(A) for the assessment year 2013-14. Shri Anup Shangai, FCA,ld AR appeared for the assessee. Shri T Pandya, ld Sr DR represented on behalf of the revenue. P a g e 1 | 6 IN THE INCOME TAX APPELLATE TRIBUNAL, , JUDICIAL MEMBER AND RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER DCIT, Circle-1, Jamshedpur/AO, National Faceless Centre Respondent) Anup Shangai, FCA and Shri Anand Harathka, ld Sr DR 2025 2025 This is an appeal filed by the assessee against the order of the ld in Appeal No.CIT(A) NFAC/2012- ed for the assessee. Shri represented on behalf of the revenue. Printed from counselvise.com P a g e 2 | 6 3. It was submitted by ld AR that the assessee is engaged in manufacturing and sale of auto components parts. It was the submission that the assessee had filed its return of income for the impugned assessment year on 21.9.2013. The return filed by the assessee came to be processed and the assessment came to be completed u/s.143(3) of the Act on 22.6.2015. It was the submission that subsequently notice u/s.148 of the Act has been issued to the assessee on 30.3.2021. It was the submission that consequently, assessment had been completed on 30.3.2022. Ld AR drew our attention to the notice issued u/s.143(2) r.w.s 147 dated 4.6.2021, wherein, the reasons recorded for reopening has been mentioned by the AO. The same reads as follows: Printed from counselvise.com P a g e 3 | 6 “ Printed from counselvise.com P a g e 4 | 6 Printed from counselvise.com P a g e 5 | 6 4. It was the submission that as the impugned assessment year is 2013-14 and as the original assessment had been completed u/s.143(3) on 22.6.2015 and the notice u/s.!48 of the Act has been issued on 31.3.2021, which was beyond four years period, the proviso to section 147 came into play. It was the submission that in the reasons recorded, there is no mention of failure on the part of the assessee to disclose fully and truly all material facts required for his assessment. It was the submission that as there is no failure on the part of the assessee to disclose all materials facts required for his assessment, the notice issued u/s.148 of the Act is bad in law and the consequential assessment is liable to be quashed. 5. In reply, ld Sr DR vehemently supported the order of the AO and ld CIT(A). It was the submission of ld Sr DR that this was a case of bogus share capital. It was his prayer that the order of the ld CIT(A) be upheld. 6. We have considered the rival submissions. The facts in the present clearly show that the reopening has been done beyond four years period and the original assessment has also been done in the present case. This being so, admittedly, the proviso to section 147 of the Act thus come into play. As per the proviso to section 147, there has to be recording on the failure on the part of the assessee to disclose fully and truly all material facts required for his assessment. Unless the failure is shown by the Printed from counselvise.com P a g e 6 | 6 AO the reopening would be invalid. As the AO has not mentioned any failure on the part of the assessee to disclose fully and truly all material facts required for his assessment, we are of the view that the reopening as done in the present case is unsustainable. Consequently, the reopening is held to be bad in law and consequential assessment is annulled. 3. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 20/08/2025. Sd/- sd/- (RATNESH NANDAN SAHAY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi ; Dated 20/08/2025 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Ranchi 1. The Appellant : Auto Profiles Ltd., C-33, 34, 35, IV Pase, Adityapur Industrial Area, PO: Gamharia, Seraikela, Jamshedpur 2. The Respondent: DCIT, Circle-1, Jamshedpur/AO, National Faceless Centre 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, 5. DR, ITAT, Ranchi 6. Guard file. //True Copy// Printed from counselvise.com "