HOWRAH TRADING COMPANY PVT. LTD.,KOLKATA V. DCIT, CIR. 5, KOLKATA

ITA 694/KOL/2024

AI Insights

The case involves Howrah Trading Company Pvt. Ltd., which appealed against the reassessment order for the assessment year 2004-05. The reassessment was initially made by the AO under section 147 read with section 143(1) of the Income Tax Act, 1961, by erroneously copying the details from AY 2003-04. The CIT(A) upheld this order, which was contested in the Tribunal. The Tribunal noted the procedural error and the lack of proper application of mind by the AO, leading to the quashing of the reassessment order.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35927 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 04-07-2024
• Assessment Year: 2004-2005
• Appeal Filed On: 04-04-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: QUASHING
• Keywords: Reopening of assessment
• Section: 147; 148; 143(1)

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 694/Kol/2024 Assessment Year: 2004-05 Howrah Trading Company Pvt. Ltd. (PAN: AAACH 8265 R) Vs. DCIT, Circle-5, Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 25.11.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 26.11.2024 For the Appellant/ Ǔनधा[ǐरती कȧ ओर से Shri S. K. Pransukhka, FCA For the Respondent/ राजèव कȧ ओर से Shri Raja Sengupta, Addl. CIT Sr. DR ORDER / आदेश Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-Addl. JCIT(A)-2, Pune (hereinafter referred to as the “Ld. CIT(A)”] dated 07.02.2024 for the AY 2004-05. 2. The assessee has challenged the order of JCIT(A) in confirming the assessment order dated 21.12.2010 passed u/s 147 of the Act. 2 I.T.A. No.694/Kol/2024 Assessment Year: 2004-05 Howrah Trading Company Pvt. Ltd. 3. Facts in brief are that the case of the assessee was only reopened u/s 147 of the Act and no notice was ever issued u/s 148 of the Act by the AO to the assessee. In fact the reopening of assessment was made for AY 2003-04 and the copy of notice issued u/s 148 dated 25.10.2009 is filed at page no. 3 of the paper book. The assessee filed return of income for instant assessment year on 01.11.2004 which was processed u/s 143(1) vide order dated 29.12.2005, a copy of which is filed at page no. 2 of the paper book. Similarly the acknowledgment for AY 2004-05 is filed at page 1 of paper book wherein the total loss declared by the assessee was Rs. 21,80,320/- which was assessed in the summary assessment. The AO erroneously passed an order u/s 147 read with section 143(1) of the Act dated 31.12.2010 taking all the facts from AY 2003-04 verbatim. In other words and figures in the AY 2003-04 were also verbatim copied and pasted in AY 2004-05 and assessment was framed thereon wrongly. Similarly the same was upheld by the Ld. CIT(A). Now the issue has been placed before us and the ld. D.R has requested the bench to allow the sometime to find out the truth. Accordingly time was given and the case was posted for 4.7.2024. The Ld. D.R at the time of hearing placed a letter dated 02.07.2024 before the Bench with enclosure which are reproduced below: 3 I.T.A. No.694/Kol/2024 Assessment Year: 2004-05 Howrah Trading Company Pvt. Ltd. It is apparent from the above that this order has been framed erroneously by the AO by taking the facts from AY 2003-04. It was also stated in the said letter that the case was only reopened u/s 147 for A.Y. 2003-04. Therefore is a case of gross non application of mind by the AO and also gross negligence which has caused huge harassment to the assessee. Even the ld CIT also ignored the said fact despite being specifically pointed out by the assessee.Accordingly, we are allowing the appeal of the assessee by quashing the reassessment framed by the AO. 4. In the result, the appeal of the assessee is allowed. Order is pronounced in the open court on 26th November, 2024 Sd/- Sd/- (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) (Rajesh Kumar/राजेश क ुमार) Judicial Member/ÛयाǓयक सदèय Accountant Member/लेखा सदèय Dated: 26th November, 2024 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- Howrah Trading Company Pvt. Ltd., 8, B.B.D. Bag, East Dalhousie Square, Kolkata-700001 2. Respondent – DCIT, Circle-5, Kolkata 3. Ld. CIT(A)-Addl. JCIT-Pune 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "