Shri Harshadbhai Savdasbhai Sakariya, Surat V. The Income tax Officer,Ward-9(2), Surat

ITA 1539/AHD/2010

• Counselvise Citation: 153920514 RSA 2010
• Duration Of Justice: 2 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-05-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 16-04-2012
• Assessment Year: 2003-2004
• Appeal Filed On: 10-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P I KUREEL
• Assessee Lawyers: HARDIK VORA
• Section: 147

Judgement Text

, , , , C, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, C BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ %& %& %& %& , , , , &' ( & &' ( & &' ( & &' ( & ' ' ' ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND TEJ RAM MEENA, ACCOUNTANT MEMBER) ITA NO. 1539/AHD/2010 [ASSTT.YEAR : 2003-2004] HARDASBHAI SAVDASBHAI SAKARIYA 49, 3 RD FLOOR, SUNDARVAN SOCIETY NR.SITA NAGAR CHAR RASTA PUNAGAM, SURAT. /VS. ITO, WARD-9(2) SURAT. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) .% / 0 &/ ASSESSEE BY : SHRI HARDIK VORA ( / 0 &/ REVENUE BY : P.I. KUREEL, SR.DR 2 / %3'/ DATE OF HEARING : 18 TH APRIL, 2012 456 / %3'/ DATE OF PRONOUNCEMENT : 15-05-2012 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMI SSIONER OF INCOME- TAX (APPEALS)-V, SURAT DATED 20.01.2010 FOR ASSESSM ENT YEAR 2003- 2004. 2. THE ASSESSEE HAS RAISED THE FOLLOWING ADDITIONAL GROUND OF APPEAL BEFORE THE TRIBUNAL. ITA NO. 1539/AHD/2010 -2- ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AS W ELL AS LAW ON THE SUBJECT, THE AO HAS ERRED IN REOPENING THE A SSESSMENT U/S.147 OF THE ACT AS REASONS RECORDED BY THE AO DO NOT REVEAL ANY LIVE NEXUS OF THE INFORMATION WITH THE ASSESSEE , AMOUNT OF INCOME, AS TO WHETHER IT IS CHARGEABLE TO TAX AND W HETHER IT HAS ESCAPED THE ASSESSMENT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ADDITIONAL GROUND RAISED BY THE ASSESSEE IS LEGAL I N NATURE AND GOES TO THE ROOT OF THE MATTER. THE LEARNED DR HAS OPPOSED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. WE HAVE C ONSIDERED RIVAL SUBMISSIONS REGARDING THE ISSUE OF ADDITIONAL GROUN D OF APPEAL PREFERRED BY THE ASSESSEE. THE ISSUE RAISED IN THE ADDITIONAL GROUND BY THE ASSESSEE BEING LEGAL IN NATURE, IS ADMITTED. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT PROTECTIVE ASSESSMENT WAS FRAMED BY THE DEPARTMENT IN THE HAND S OF THE ASSESSEE AND THERE IS NO NEXUS OF THE ASSESSEE WITH INFORMA TION RECEIVED BY THE DEPARTMENT FOR REOPENING OF THE ASSESSMENT UNDE R SECTION 147 OF THE ACT. HE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE ITAT, AHMEDABAD B ENCHES IN THE GROUP CASES OF SMIT. FALGUNIBEN C. PATEL & OTHERS D ATED 17.02.2012 IN ITA NO.221/AHD/2008 & OTHERS, WHEREIN IN IDENTIC AL FACTS, THE REOPENING WAS HELD AS INVALID AND THE ASSESSMENT FR AMED BY THE AO WAS CANCELLED. THE LEARNED DR HAS RELIED ON THE OR DERS OF THE AO AND THE CIT(A). 5. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE ISSUE OF REOPENING OF THE ASSESSMENT UNDER SECTION 147 OF THE ACT IS COVERED IN FAVOUR OF THE ITA NO. 1539/AHD/2010 -3- ASSESSEE WITH THE DECISION OF THE ITAT, AHMEDABAD B ENCHES IN THE CASE OF SMT. FALGUNIBEN C. PATEL & OTHERS DATED 17. 2.2012 (SUPRA) WHEREIN IN IDENTICAL FACTS, THE REOPENING OF THE AS SESSMENT WAS CANCELLED. WE BEING IN AGREEMENT WITH THE DECISION OF THE ITAT, AHMEDABAD IN SMT. FALGUNIBEN C. PATEL & OTHERS (SUP RA) HOLD THAT THE REASONS RECORDED BY THE AO FOR REOPENING UNDER SECTION 147 OF THE ACT DO NOT CONNECT THE ASSESSEE WITH INFORMATI ON AND THAT ANY ESCAPEMENT OF INCOME IN THE RELEVANT YEAR, AND THER EFORE, THE REOPENING OF THE ASSESSMENT IN THIS CASE IS CANCELL ED. 6. WE ACCORDINGLY DO NOT CONSIDER IT NECESSARY TO D EAL WITH THE ISSUES RAISED IN OTHER GROUNDS OF THE APPEAL OF THE ASSESSEE ON MERIT. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %& %& %& %& / TEJ RAM MEENA) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD