AVISHKAR NIRMAN PVT. LTD.,KOLKATA V. I.T.O., WARD - 13(1), KOLKATA

ITA 2302/KOL/2025

AI Insights

The case involves Avishkar Nirman Private Ltd, which appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2013-2014. The primary issue was the reopening of the assessment by the AO beyond the permissible period of four years from the end of the relevant assessment year, without any valid grounds or evidence of non-disclosure of material facts by the assessee. The AO had relied on information from the investigation wing but failed to demonstrate any independent application of mind or substantiate the reasons for reopening the assessment. The tribunal referenced a Supreme Court decision (CEAT Ltd.) to support its finding that the reopening was invalid.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 791131 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 13-10-2025
• Other Referred Cases: CEAT Ltd. vs. (2020) 449 ITR 171 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANTANU GHOSH
• Assessee Lawyers: MANOJ KATARUKA
• Keywords: Invalid notice
• Section: 147

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.2302/KOL/2025 (निर्धारण वर्ा / Assessment Year : 2013-2014) Avishkar Nirman Private Ltd, 7, Tara Chand Dutta Street, 3rd Floor, Kolkata-700073 Vs ITO Ward-13(1), Kolkata PAN No. :AAGCA 5075 Q (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by Shri Manoj Kataruka, Advocate रधजस्व की ओर से /Revenue by : Shri Santanu Ghosh, Sr. DR सुनवाई की तारीख / Date of Hearing : 11/12/2025 घोषणा की तारीख/Date of Pronouncement : 11/12/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 16.09.2025 for the assessment year 2013-2014. 2. It was submitted by the Ld.AR that the assessee is challenging the reopening of the assessment. It was submission that the original assessment u/s.143(3) of the Act came to be completed in the case of the assessee on 28/01/2016. It was submission that notice u/s.148 of the Act had been issued to the assessee on 19/03/2020. It was he submission that this was beyond the period of 4 years from the end of the relevant assessment year. It was submission that the in view of provision of Section 147 of the Act, the AO must record the failure on the part of the assessee to disclose truly and fully all material facts as required for the assessment. Printed from counselvise.com ITA No.2302/KOL/2025 2 The Ld. AR draw our attention to the reason recorded for reopening which reads as follows:- Printed from counselvise.com ITA No.2302/KOL/2025 3 Printed from counselvise.com ITA No.2302/KOL/2025 4 3. It was submission that the AO has not mentioned any failure on the part of the assessee to disclose truly and fully all material facts as required for the assessment. It was submission that the reopening is bad in law and the same is liable to be quashed. He relied upon the decision of the Honb'le Supreme Court in the case of CEAT Ltd., reported in (2020) 449 ITR 171 (SC). 4. In reply, Ld. Sr DR vehemently supported the order of the AO and CIT(A). It was the submission that the information had been received from the investigation wing and it was on the basis of such information the reopening has been done. It was the prayer that the reopening must be upheld. 5. We have considered the rival submission. Coming to the issue with regard to the information received from the investigation wing, one of the Printed from counselvise.com ITA No.2302/KOL/2025 5 primary requirement in respect of reopening is that the AO must apply his independent mind. The reasons recorded clearly shows that there is no independent application of mind by the AO. He has blindly extracted the information receipt from the DDIT(IV)/Kol/U-2(1)/Kolkata/Nawal) and there is no application mind in regard to the said information. Now it is also an admitted fact that the original assessment in the case of the assessee was completed u/s.14(3) of the Act on 28/01/2016 and the reason for the selection was on account of large share premium. The reasons recorded by the AO also shows that the issue is in regard to large share premium. A perusal of the reasons recorded also clearly shows that there is no allegation by the AO, much less any evidence to show, that there was failure on the part of the assessee to disclose truly and fully all materials facts as required for the assessment. This being, so in view of the principle laid down by the Hon’ble Supreme Court in the case of CEAT Ltd., referred to supra, we are of the view that the reopening of the assessment by issuance of notice u/s.148 of the Act is unsubstantiated and consequently bad in law. Accordingly, the assessment passed in consequence to the invalid notice issued u/s.148 of the Act, also stands quashed. 6. In the result, the appeal of the assessee is allowed. Order dictated and pronounced in the open court on 11/12/2025. Sd/- (RAJESH KUMAR) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 11/12/2025 Prakash Kumar Mishra, Sr.P.S. Printed from counselvise.com ITA No.2302/KOL/2025 6 आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 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, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "