ACIT Circle-11(2), New Delhi V. Humboldt Wedag India Private Limited, New Delhi

ITA 1413/DEL/2020

AI Insights

The case involves cross appeals by Humboldt Wedag India Pvt. Ltd. and the ACIT, Circle-11(2), New Delhi, against the order of the Commissioner of Income Tax (Appeals)-XLII, Delhi, arising from the reassessment order for the Assessment Year 2006-07. The primary contention revolved around the legality of the reassessment proceedings initiated by the Assessing Officer under Sections 147/148 of the Income Tax Act, 1961. The assessee challenged the jurisdiction and the merits of the reassessment, while the Revenue supported the reassessment and the additions made therein. The Tribunal, after examining the legal provisions and the facts of the case, concluded that the reassessment was not legally sustainable due to the failure to comply with the statutory requirements for reopening an assessment.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121522 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-05-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-05-2023
• Assessment Year: 2006-2007
• Appeal Filed On: 13-07-2020
• Other Referred Cases: Foram vs. CIT, Tanita Construction Co. Ltd. vs. DCIT, Eagle Fashion (P) Ltd. vs. DCIT, CIT vs. Sonitpur Solves Ltd., Himson Textile Engineering Industries (P) Ltd. vs. ACIT, Rambagh Palace Hotels (P) Ltd. vs. DCIT, Sadhbhav Engineering Ltd. vs DCIT, CIT vs. M.G. Motors, CIT vs. Noble Resources & Trading (P) Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S.K. AGGARWAL
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B” DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.1299/DEL/2020 Assessment Year 2006-07 Humboldt Wedag India Pvt. Ltd. A-36, Mehtab House, Mohan Co- operative Industrial Area Mathura Road New Delhi v. ACIT, Circle-11(2), New Delhi. TAN/PAN: AAACH7474G (Appellant) (Respondent) I.T.A. No.1413/DEL/2020 Assessment Year 2006-07 ACIT Circle-11(2) New Delhi v. Humboldt Wedag India Pvt. Ltd. A-36, Mehtab House, Mohan Co- operative Industrial Area Mathura Road New Delhi TAN/PAN: AAACH7474G (Appellant) (Respondent) Assessee by: Shri S.K. Aggarwal, CA Department by: Shri T. James Singson, CIT-DR Shri Sanjay Kumar Yadav, Sr.DR Date of hearing: 11 05 2023 Date of pronouncement: 26 05 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capti oned C ross A ppeals h ave bee n fi led by the A ssessee and the Revenue a gains t t he order of the Co mmis si oner ITAs No.1299/Del/2020 & 1413/Del/2020 2 of Income T ax (Appeals )-X L II, D el hi [ ‘C IT (A) ’ in short ], da te d 06. 02.2020 aris i ng from the assess me nt order da ted 28. 03. 20 14 passed by the A ssessing O ffice r (A O ) under Secti ons 147/254/154/ 251/1 43(3) of the I nco me T ax A ct, 19 61 (t he A ct ) conce rn ing AY 2006-07. 2. T he grou nds of appea l ra ised b y the assesse e read as unde r: “ 1 . O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c as e a n d i n l a w , t h e L d . C I T ( A ) h a s e r r e d i n u p h o l d i n g t h e r e a s s e s s m e n t o r d e r p a s s e d b y t h e D e p u t y C o m m i s s i o n e r o f I n c o m e T a x , C i r c l e - 8 , K ol k a t a ( " L d . A O " ) u n d e r s e c t i o n 1 4 7 o f t h e A c t d i s a l l o w i n g t h e co n s u l t a n c y f e e s o f R s . R s . 6 9 , 0 8 , 0 0 0 p a i d t o M / s T u t i c o r i n T r e x i m P v t . L t d . 2 . O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c a se a n d i n l a w , L d . C I T ( A ) h a s e r r e d i n n o t a p p r e c i a t i n g t h a t r e a s s e s s me n t p r o c e e d i n g s a n d t h e r e a s s e s s m e n t o r d e r p a s s e d b y t h e L d . A O i s w r o n g , b a d i n l a w a n d w i t h o u t j u r i s d i c t i o n a n d l i a b l e t o b e q u a s he d . 2 . 1 O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c as e a n d i n l a w , t h e L d . C I T ( A ) h a s f a i l e d t o a p p r e c i a t e t h a t t h e n o t i c e u n d e r s e c t i o n 1 4 8 o f t h e A c t w a s i s s u e d a f t e r e x p i r y o f 4 y e a r s f r o m t h e e n d o f r e l e v a n t a s s e s s m e n t y e a r a n d s i n c e a p p e l l a n t h a s d i s c l o s e d fu l l y a n d t r u l y a l l m a t e r i a l f a c t s n e c e s s a r y f o r i t s a s s e s s m e n t f o r s u bj e c t a s s e s s m e n t y e a r , t h e n o t i c e u n d e r s e c t i o n 1 4 8 o f t h e A c t a n d th e r e a s s e s s m e n t o r d e r p a s s e d b y t h e L d . A O i s i n v a l i d a n d n o t s u s t ai n a b l e i n l a w . 2 . 2 O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c as e a n d i n l a w , t h e L d . C I T ( A ) h a s f a i l e d t o a p p r e c i a t e t h a t t h e r e a s s es s m e n t p r o c e e d i n g s w e r e i n i t i a t e d b y t h e L d . A O o n t h e b a si s o f r e p o r t o f i n v e s t i g a t i o n w i n g w i t h o u t a p p r e c i a t i n g t h e d o c u m e nt a r y e v i d e n c e s p r o v i d e d b y t h e a p p e l l a n t a n d n o t r e b u t t i n g t h e s a me o n t h e b a s i s o f a n y c o n t r a r y m a t e r i a l o n r e c o r d , t h e r e a s s e s s m e n t pr o c e e d i n g s a n d t h e r e a s s e s s m e n t o r d e r i s w r o n g a n d b a d i n l a w . 2 . 3 O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c as e a n d i n l a w , t h e L d . C I T ( A ) h a s f a i l e d t o a p p r e c i a t e t h a t t h e r e a s s es s m e n t o r d e r p a s s e d b y t h e L d . A O i s w i t h o u t j u r i s d i c t i o n a s t h e p r o v i s i o n s o f s e c t i o n 1 4 7 / 1 4 8 o f t h e A c t a r e n o t a p p l i c a b l e i n t hi s c a s e . 3 . O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c a se a n d i n l a w , t h e L d . C I T ( A ) h a s e r r e d i n u p h o l d i n g t h e d i s a l l o w a n c e o f c o n s u l t a n c y f e e s p a i d t o M / s T u t i c o r i n T r e x i m P v t . L t d . b y L d . A O i n t h e r e a s s e s s m e n t o r d e r u n d e r s e c t i o n 1 4 7 o f t h e A c t w i th o u t a l l o w i n g c r o s s e x a m i n a t i o n o f M r . P r a v e e n A g g a r w a l w h o s e s t at e m e n t h a s b e e n u s e d t o d i s a l l o w t h e e x p e n d i t u r e , w h i c h i s a g ai n s t t h e p r i n c i p a l o f n a t u r a l j u s t i c e a n d t h e a c t i o n o f L d . A O s h o u l d h a v e b e e n d e l e t e d ITAs No.1299/Del/2020 & 1413/Del/2020 3 o n t h i s g r o u n d . 4 . O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c a se a n d i n l a w , t h e L d . C I T ( A ) h a s e r r e d i n n o t a l l o w i n g t h e c r o s s e x a mi n a t i o n o f M r . P r a v e e n A g g a r w a l , w h o s e s t a t e m e n t h a s b e e n u s e d i n t h e o r d e r t o a l l e g e d i s a l l o w a n c e o f a f o r e s a i d c o n s u l t a n c y f e e s pa i d b y t h e a p p e l l a n t i n c o n f i r m i n g t h e r e a s s e s s m e n t o r d e r o n th i s i s s u e . 5 . O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c a se a n d i n l a w , t h e a c t i o n o f t h e L d . C I T ( A ) i n n o t a l l o w i n g d e d u c t i o n f o r c o n s u l t a n c y f e e s p a i d w i t h o u t a f f o r d i n g t h e o p p o r t u n i t y o f c r o ss e x a m i n a t i o n o f M r . P r a v e e n A g g a r w a l i s a g a i n s t t h e p r i n c i p l e o f n at u r a l j u s t i c e a n d c o n s e q u e n t l y , t h e o r d e r o f L d . C I T ( A ) i s n o t s u s t a in a b l e i n l a w . 6 . W i t h o u t p r e j u d i c e t o t h e a b o v e , o n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c a s e a n d i n l a w , t h e L d . C I T ( A) h a s e r r e d i n n o t a l l o w i n g c o n s u l t a n c y f e e s p a i d o f R s . 6 9 , 0 8 , 0 0 0 w i th o u t a p p r e c i a t i n g t h a t , 6 . 1 N o d i s a l l o w a n c e c a n b e m a d e o n t h e b a s i s o f s t an d a l o n e s t a t e m e n t o f t h i r d p a r t y w h i c h h a s n o t b e e n s u b j e c t t o c r o s s e x a m i n a t i o n b y t h e a p p e l l a n t ; 6 . 2 . S u c h c o n s u l t a n c y f e e s a r e g e n u i n e b u s i n e s s e x pe n d i t u r e i n c u r r e d w h o l l y & e x c l u s i v e l y f o r b u s i n e s s p u r p o s e a n d a s p er c o m m e r c i a l e x p e d i e n c y ; 6 . 3 A p p e l l a n t h a s d i s c h a r g e d t h e b u r d e n o f p r o o f b y f u r n i s h i n g d e t a i l s o f t h e t r a n s a c t i o n s i . e . c o n t r a c t s , i n v o i c es , l e d g e r a c c o u n t s e v i n c i n g p a y m e n t t h r o u g h b a n k , T D S c o m p l i a n c e s e t c .; 6 . 4 . P a y m e n t h a s b e e n m a d e t o i n d e p e n d e n t s e r v i c e pr o v i d e r s f o r e s s e n t i a l i n p u t s e r v i c e s . T h a t t h e a b o v e g r o u n d s a r e i n d e p e n d e n t a n d w i t h o u t p r e j u d i c e t o o n e a n o t h e r . T h e a p p e l l a n t c r a v e s l e a v e t o a d d , a m e n d , a l t e r a n d o r m o d i f y a n y o f t h e g r o u n d s o f a p p e a l o n o r b e f o r e t he h e a r i n g . ” 2. 1 T he grou nds of appea l raised b y the Revenue re ad as unde r: “ W h e t h e r t h e L d . C I T ( A ) w a s c o r r e c t o n f a c t s a n d c ir c u m s t a n c e s o n d e l e t i n g t h e d i s a l l o w a n c e a m o u n t i n g t o R s . 1 0 , 4 6 , 6 2 ,2 6 8 / - m a d e b y t h e A s s e s s i n g O f f i c e r o n a c c o u n t o f p r o v i s i o n r e l a te d t o w a r r a n t y / p e r f o r m a n c e o b l i g a t i o n s . ” 3. Br ie fl y sta ted, t he assess ee-compa ny is ma inl y enga ged in the bus in ess of designi ng, f abr ica ti ng, man ufactur ing and suppl y of equipme nt pl a nts a nd mac hi ne ry for cement ma nufacturi ng co mpanies. For the A ssess ment Y ear i n quest ion, the assessee ITAs No.1299/Del/2020 & 1413/Del/2020 4 fi led retu rn of inco me at Rs. 11, 8 3, 60, 072/-. T he return so fi le d w as assess ed at Rs . 16, 03, 32, 609/ - unde r Sec t io n 143(3) of the A ct vi de or der dated 2 n d December, 20 08. T he re af te r, th e Assessing O fficer iss ue d not ice dat ed 25 t h Marc h, 2013 unde r S ection 14 8 of the A ct fo r i ni ti ati ng r e-asses sment p rocee di ngs. 4. T he reass ess me nt proce edin gs w ere con cl uded a nd the taxable income was re -ass ese d at Rs. 23, 30, 89240/- (i nc lu ding all eg ed es cape ment o f inco me of Rs. 69, 08, 000/- vi de reassess ment order d ate d 28. 03. 2014 pas sed under Secti on 147 r. w. Section 143(3) of th e A ct. 5. A gg rieve d b y the reass ess ment of income, the assessee prefe rr ed a ppeal be fo re the C IT (A ). Before t he C IT(A), the assessee has a ls o cha lle nged the j uris di ct ion ass umed b y the A ssessi ng O ff ice r under Sec ti on 147 r.w . Section 148 of the A ct and cla imed that reope ning not ice w as issue d for reope ning assess me nt w ithout me et ing th e prere quis it es of S ect ion 147 t o Sect ion 151 of t he Act. The Assesse e als o c ha ll enged th e meri ts of the addi t io ns. The CIT (A ) h ow ever d is misse d t he ground i n re la tion to the lac k of j uris dicti on u nde r Sect io n 147 of th e A ct but how e ver gra nted partia l reli ef on me rits. 6. A gg rieve d b y the partia l relie f grant ed by th e CIT (A), both assessee and A ssessing Of fice r have preferred respec tive a ppe als be fore t he T ri bunal. 7. When the matter w as calle d fo r hearin g, the ld. couns el for the assess ee re fe rred to t he rea sons reco rded unde r Sec t io n 1 48( 2) of the A ct at the outs et an d challe nged t he vali dity of assu mpt ion of j urisdic ti on u nder Sec tion 147 of the A ct. ITAs No.1299/Del/2020 & 1413/Del/2020 5 7. 1 T he l d. couns el for the a ssesse e subm itte d tha t t he Asse ssing O fficer ha s w ro ngl y usurped j urisdict ion unde r S ec tion 14 7 o f the A ct contrar y t o ma nda te of law f or more than on reasons. (i ) T he n ot ice f or re opening has been issued be yo nd four ye ars fro m t he end of the A ss es sme nt Y ear 2006- 07 in question a nd the assess me nt i n t his c ase w as ea rlie r comple ted under S ect ion 143(3) of the A ct and therefor e, the r eopening no ti ce is cle ar l y t ime ba rred for t he reas on tha t embargo pl a ced by 1 s t pr ovi so t o the erstw hile provis ion of Sec ti on 14 7 o f the A ct coul d not be succ ess full y l ifted b y the A ssessi ng O ffic e r. (i i) T he reasons rec orded do not mee t the re qui re me nt of law both under main pr ovis ions of S ecti on 147 of t he A ct as well as the proviso t hereto. (i ii) T he rea sons recor ded do no t even alle ge that the re i s any f ai lure on the pa rt of the assessee to di sclos e mate ri al fac ts ful ly and t rul y and cons eq ue ntl y, i n the abse nce of s uc h al legations, the case of t he assesse e h as bee n r eo pened be yond t he limi tat ion pe ri od of four yea rs f rom t he end of the releva nt assessment ye ar an d th us th e noti ce so iss ued under Sect ion 148( 2) is prim a faci e ti me barr ed in law. (iv ) T he reasons record ed als o do n ot meet the requ irement of ma in p rovis ion inas much as the reasons rec ord ed su ffe rs fr om no n ap plicati on of mind. ( v) The appr oval gi ven b y t he superi or a uthorit y ITAs No.1299/Del/2020 & 1413/Del/2020 6 un der Sect ion 151 of t he Act i s nothi ng but a mec hani cal appr oval and t hus does not meet the r equi re ment of l aw. We shall deal wi t h t he nuanc es of t he ar gu me nts advanced on be half of t he assessee on t he a bove br oa d pr oposit i ons at app ropri at e pl ace i n succeedi ng para gra phs. 7. 2. On meri ts, t he l d. counsel f or t he assessee assai led t he i mpugned or der of CI T(A ) whe rei n the addi ti ons of Rs.69,0 8, 000/ - on account of all eged bogus c ons ult anc y fees was sustaine d. It was al leged t hat t he al legat ions ma de agai nst the assessee ar e wi t hout a n y cor robor at ion and has bee n made ove rlo oki ng t he r el eva nt f acts and hence not obj ecti vel y just i fiabl e. 7. 3 The l d. co unsel f urt he r sub mi t ted that the CI T(A) has not appli ed i ts mi nd to all consi derat i ons and t he ci rcu mst ances ger mane to t he a ssessee. The ld. counsel sub mi tt ed t hat the vol u mi nous doc ume nts f il ed bef or e the re venue aut hori ti es t o support t he cons ul t anc y charges are t est ament t o t he bona f i des of t he ex penses i ncurre d. The Ld. Counsel t her eafter also def ended the rel i ef gi ven b y C IT( A ) on t he i ssue of pr ovisi on for war r ant y under chal lenge b y re venue. We s hal l de al wi th t he ar gu ments canvass ed on mer it s, i f so not ed, at appropri at e pl ace. 8. The l d. D R f or t he Revenue, on t he oth er hand, supported the order of t he Assessi ng Of ficer a nd CI T(A) o n assu mpti on of jurisdi cti on under Secti on 147 of the Act . The l d. DR fur t her support ed t he di sall owance t owar ds bogus cons ult ancy fees ITAs No.1299/Del/2020 & 1413/Del/2020 7 cl ai me d t hr ough an acco mmodati on ent r y of Rs.69,08,000/- . The DR however assai l ed the acti on of t he CI T(A ) f or r eversal of di sall owance a mo unt i ng t o Rs. 10, 46, 62, 268/ - made b y t he AO towar ds pro visi on r el at ed to war ra nt y/ perf or mance obl i gati ons and reli ed upon th e assert i ons ma de b y t he Assessing Offi cer i n this regard. 9. We have hear d bot h t he si des i n t he capt i oned cross app eals and al so per used the r eassessment or der and t he fir st app el late order i n questi on. We ha ve also caref ull y p eruse d the reasons recor de d under Sect io n 1 48(2) of t he Act for assumpti on of j uri s di ct ion r el i ed up on t he co mpl et ed assess me nt as wel l as the mat eri al refer red t o and rel i ed upon has fi led b y w a y of pap er book and al so the case l aw ci ted. 10. Si nce, t he assessee has int er al ia questi oned t he l eg al it y of reassess ment or de r it sel f whi ch af fect s t he jur isdict i on a nd goes to t he ver y root of t he mat ter, we conside r it necessar y t o adj udi cate t he gr ounds conce rni ng the basic issue of l ac k of jurisdi cti on fi rst. 10. 1 The val i dit y of r eassessment or der fr ame d u nder Secti on 143( 3) r. w. Sect i on 147 of t he Act as wel l as vali di t y of issuance of noti ce under Sect io n 148 of t he A ct fo r ma kin g t he reassess ment or der unde r Secti on 147 of t he Act i s i n contr overs y. 10. 2 Before we pr oceed t o deal wi t h the j uri sdicti onal aspects, it wil l be per ti nent t o re pr oduce t he reasons r ec orded under S. 148( 2) of the Act i n co nte mpl at ion as ext ract ed i n the ITAs No.1299/Del/2020 & 1413/Del/2020 8 assess ment or der. “ I t h a s c o m e t o t h e n o t i c e o f t h e u n d e r si g n e d f r o m t h e i n f o r m a t i o n p r o v i d e d b y D I T ( I n v ) , K o l k a t a v i d e l e t t e r F . N o . 3 5 / 20 1 2 - 1 3 /3 6 0 6 - 3 6 1 4 d a t e d 0 6 . 0 2 .2 0 1 3 t h a t t h e a s s e s s e e h a s b o o k e d b o g u s e x p e n s e a m o u n t i n g t o R s . 6 9 ,0 8 , 0 0 0 / - f r o m e n t r y o p e ra t o r c o m p a n i e s r u n b y S r i P r a v e e n A g a r w a l . T h e r e f o r e , I h a v e r e a so n t o b e l i e v e t h a t a s s e s s e e ha s e s c a p e d a s s e s s m e n t o f i n c o m e o f R s . 6 9 ,0 8 ,0 0 0 / - . H e n c e n o t i ce u n d e r S e c t i o n 1 4 8 i s i s s u e d . ” 11. To begi n wi t h, i t ma y be perti ne nt t o obser ve th at S. 147 is a substa nti ve pr ovisi on vesti ng j uri sdi ct ion to reopen a con cl uded assessment and t her ef or e condit io ns st ipulate d for assump ti on of j ur i sdicti on ar e r equi red t o be adhe red st rict l y. Secti on 147 i s st r uctur ed wi t h i nbui lt safeguar ds. The AO i s not per mi tt ed t o exer cise t he powers under S. 147 ar bi tr ari l y or me cha nical l y as an i psi dixi t. The r easons f or reo peni ng (extr acte d a bove ) are t he f ul cr u m f or f or mati on of bel ief towar ds al leged escape me nt. On apprai sal of the r easo ns so recor ded for exer cise of drasti c powers conf er r ed under S. 147 for re ope ni ng of assess ment for A Y 2006- 07 in que sti on, it is sel f evi dent t hat t here i s no al l egati on w hat soever in t he r easons recor ded t hat t her e was a fai l ure on the par t of t he assessee t o di sclose mat er ial fact s ful l y a nd trul y at t he t i me of t he or i gi nal assess ment car ried out un der Sect i on 143( 3) of t he Act. As not ed abo ve, the noti ce u nder Secti on 148 was i ssued af ter expir y of f our ye ars fro m t he end of t he relevant assess ment yea r and hence, Secti on 147 i s require d t o be t est ed a mong ot hers, on t he t ouchst one of st ri ngent con dit io ns pl aced under 1 s t provi so to Sect ion 1 47 of the Act . ITAs No.1299/Del/2020 & 1413/Del/2020 9 12. On bare per usal of the reasons recor ded, we fi nd conspicuous absence of an y al legati on t hat a ny i ncome char geabl e t o t ax has escaped assess ment ‘b y reas on of the fail ure on the part of t he assessee t o disclose full y and t rul y al l ma teri al fact s ’ ne cessar y for assessment . In the a bsence of suc h al legati on, t he j ur i sdict ion assu med under Sect io n 148 t o reopen a co mp leted asse ss ment is clear l y voi d ab i nit io. We draw support for t hi s pr oposit i on fr o m t he f oll owi ng deci si ons: • F o r a m e r v s . C I T ( 2 0 0 1 ) 1 1 9 T a x m a n 6 1 (A l l a h a b a d H i gh C o u r t ) { S L P d i s m i s s e d b y H o n ’ b l e S u p r e m e C o u r t i n ( 2 0 0 3 ) 2 6 4 I TR 5 6 6 ( S u p r e m e C o u r t ) • T a n i t a C o n s t r u c t i o n C o . Lt d . v s . D C I T ( 2 0 0 2 ) 2 5 7 I TR 8 4 ( C a l c u t t a H i g h C o u r t ) • E a g l e F a s h i o n ( P ) L t d . v s . D C I T ( 2 0 1 3 ) 3 0 t a x m a n n . co m 7 9 ( G u j ) • C I T v s . S o n i t p u r S o l v e s Lt d . ( 2 0 1 3 ) I T A N o . 3 0 o f 2 01 1 ( G u w a h a t i ) • H i m s o n T e x t i l e E n g i n e e r i n g I n d u s t r i e s ( P ) L t d . v s . A C I T ( 2 0 1 3 ) 3 5 T a x m a n n . c o m 5 2 8 ( G u j a r a t ) • R a m b a g h P a l a c e H o t e l s ( P ) L t d . v s . D C I T ( 2 0 1 3 ) 3 5 0 I T R 6 6 0 ( D e l h i ) ] • S a d h b a v E n g i n e e r i n g L t d . v s D C I T ( 2 0 1 2 ) 2 0 t a x m a n n .c o m 7 8 4 ( G u j . ) • C I T v s . M . G . M o t o r s ( 2 0 1 1 ) 9 t a x m a n n . c o m 2 9 0 ( D e l h i) • C I T v s . N o b l e R e so u r c e s & T r a d i n g ( P ) L t d . ( 2 0 1 0 ) 20 2 0 T a x m a n 2 2 3 ( D e l h i ) 13. We also si mult a neousl y noti ce t hat there i s no a ver ment t o the effect as t o what fact s necessar y f or assess me nt were not di sclosed b y t he assessee i n the course of t he or igi nal assess ment . Th e r easons bei ng j ust iciabl e, t he Assessing O ffi cer is expect ed to re cor d a findi ng to this effect i n the recor ded reasons. Ost ensi bl y, t he condi t ions st ipulated under the 1 s t pr ovi so to Secti on 147 are not co mp li ed wit h. In t he l i ght of t he pl et hora of ju dg ments, some of whi ch are noted ab ove, t he re- assess ment not ice issued under S ect ion 148 i s cl earl y t i me bar red owi ng t o non c o mpl ia nce condit i ons pr escri bed on 1 s t ITAs No.1299/Del/2020 & 1413/Del/2020 10 pr ovi so t o Sect i on 1 47 of t he Act . The ent ir e r ea ssess ment pr ocee din gs as a conse quenc e of such noti ce issued wi thout jurisdi cti on is bad in l aw and t hus li able to be annul l ed. 14. We do so acc or di ngl y. Si nce, we fi nd pri ma faci e f or ce i n the plea of t he ass essee that e mbar go of l i mit at i on pl aced under the 1 s t pr oviso coul d not be s uccessfull y l i fted b y t he Assessi ng Of fi cer w hi le i ssuing not ice under Sect ion 148 of the Act in t he inst ant case, we do not consi der i t necessar y t o del ve int o other aspect s of lack of j uri sdi ct ion cl ai med. 18. I n vi ew of our f indi ng that t he issuance of noti ce unde r Secti on 147/ 148 is ti me barr ed and v oid ab i nit i o and accor dingl y t he reassess ment or der fra me d i s wi thout jurisdi cti on and t heref ore i ll egal , we do not consider it exp edi ent t o deal wi t h t he me rit of t he fact ual aspe ct s of the case in respecti ve appeal s of t he Revenue a nd the ass essee. As a sequel t o such obser vat i on, t he appeal of t he Reve nue e mer gi ng fro m a nonest or der is not sustainabl e i n law. 19. I n t he resul t , the appeal of t he assessee i s all owed and t he app eal of t he Revenue is di s mi ssed. Order pronounced in the open Court on 26/05/2023. Sd/- Sd/- [CHANDRA MOHAN GARG] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /05/2023 Prabhat