INCOME TAX OFFICER, KOLKATA V. NITIN HIRE PURCHASE PRIVATE LIMITED, KOLKATA

ITA 1526/KOL/2024

AI Insights

The case involves an appeal by the Income Tax Officer, Kolkata against Nitin Hire Purchase Pvt. Ltd. concerning the assessment year 2012-13. The core issue was the legality of the reopening of the assessment under section 147 of the Income Tax Act, which the CIT(A) had found to be a mere change of opinion, not supported by any new material, and thus invalid. The Tribunal's decision focused on whether the CIT(A)'s findings were correct in law and fact, leading to the dismissal of the revenue's appeal.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 469666 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 12-07-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Difference of opinion; Change of opinion; Reassessment proceedings; Reopening of assessment
• Section: 147; 148; 143(3)

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “सी’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” 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. 1526/Kol/2024 Assessment Year: 2012-13 ITO, Kolkata Vs. Nitin Hire Purchase Pvt. Ltd. (PAN: AABCN 8093 Q) Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 25.09.2024 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 09.10.2024 For the Appellant/ Ǔनधा[ǐरती कȧ ओर से Shri A. K. Tibrewal, FCA For the Respondent/ राजèव कȧ ओर से Smt. Monalisha Pal Mukherjee, JCIT ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 02.04.2024 for the AY 2012-13. 2. At the outset, the Ld. Counsel for the assessee submitted that this is the revenue appeal but the revenue has not taken any legal issue challenging the appellate order of 2 I.T.A. No. 1526/Kol/2024 Assessment Year: 2012-13 Nitin Hire Purchase Pvt. Ltd. Ld. CIT(A). The Ld. A.R further argued that the Ld. CIT(A) has decided the issue that the issue has been examined by the AO in the original assessment proceedings which culminated in passing of order u/s 143(3) dated 31.03.2014. The Ld. CIT(A) thereafter allowed the appeal of the assessee on legal issue by giving finding in para 5.2.8 that the reopening of assessment was merely a change of opinion and hence bad in law, thereby allowing the appeal of the assessee on the legal issue. The Ld. Counsel for the assessee submitted that the revenue has not challenged the order of Ld. CIT(A) on legal issue and therefore the appeal filed by the revenue on merit become infractuous and may be dismissed. 3. The Ld. D.R relied on the order of authorities below. 4. After hearing the rival contentions and perusing the material on record, we find that the Ld. CIT(A) has allowed the appeal on legal issue of reopening of assessment by recording a finding that the issue has already been examined in the original assessment proceedings which culminated in passing the order u/s 143(3) of the Act dated 31.03.2014. Therefore the issue raised in the reassessment proceedings u/s 147 of the Act is on the basis of some material which is noting but a change of opinion which is bad in law. The finding of Ld. CIT(A) in the appellate order in para 5.2.8 is given as under: “5.2.8. In view of the above facts and circumstances, I am of the considered opinion that since there is no material alien to the record which the AO has referred to for issuing the impugned notice u/s 148 of the Act; the instant case doesn’t fall in the category of oversight, inadvertence or a mistake committed by the AO; instead it becomes a change of opinion. Therefore, the reopening of the case of the appellant is change of opinion and hence, bad in law. Hence, Ground nos. 1 to 4 is allowed.” Considering the above facts and circumstances, we are inclined to dismiss the revenue’s appeal. 3 I.T.A. No. 1526/Kol/2024 Assessment Year: 2012-13 Nitin Hire Purchase Pvt. Ltd. 5. In the result, the appeal of the revenue is dismissed. Order is pronounced in the open court on 9th October, 2024 Sd/- Sd/- (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) (Rajesh Kumar/राजेश क ुमार) Judicial Member/ÛयाǓयक सदèय Accountant Member/लेखा सदèय Dated: 9th October, 2024 SM, Sr. PS Copy of the order forwarded to: 1. Appellant- ITO, Kolkata 2. Respondent – Nitin Hire Purchase Pvt. Ltd., Stephen House, 4, B.B.D Bag (E ), Room No. 77, 5th Floor, Kolkata-700001. 3. Ld. CIT(A)- NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "