Smt. Jai Shree, Uttar Pradesh V. ITO, Meerut

ITA 2459/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3708 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 24-04-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: V K GOEL
• Keywords: Reassessment proceedings
• Section: 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.2459/DEL/2017 ASSESSMENT YEAR : 2013-14 JAI SHREE, C/O M.S. SHARMA, ADVOCATE, 71, NEW MOHANPURI, MAIN ROAD, NEAR AMBA PAINTS, MEERUT CITY, UTTAR PRADESH. PAN: ARYPS5691J VS. ITO, WARD-1(3), MEERUT. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. GOEL, ADVOCATE DEPARTMENT BY : SHRI T. VASANTHAN, SR. DR DATE OF HEARING : 17.10.2017 DATE OF PRONOUNCEMENT : 18.10.2017 ORDER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER PASSED BY THE CIT(A) ON 20.02.2017 IN RELATION TO THE ASSESSM ENT YEAR 2013-14. ITA NO.2459/DEL/2017 2 2. THE FIRST ISSUE RAISED IN THIS APPEAL IS AGAINST THE INITIATION OF RE- ASSESSMENT PROCEEDINGS BASED ON THE ALLEGED LATE AP PROVAL OF THE JCIT. THE LD. AR CONTENDED THAT THE ASSESSING OFFICER ISS UED NOTICE DATED 30.03.2016 U/S 148, BUT, APPROVAL FROM JCIT WAS REC EIVED AFTER SUCH DATE. IT WAS, THEREFORE, CONTENDED THAT THE INITIA TION OF REASSESSMENT BE SET ASIDE. 3. HAVING REGARD TO THE FACTS OF THE INSTANT CASE, IT IS SEEN FROM PAGES 13 AND 14 OF THE PAPER BOOK THAT THE ASSESSING OFFI CER MOVED PROPOSAL DATED 28.03.2016 FOR INITIATION OF REASSESSMENT ON ACCOUNT OF AIR INFORMATION RECEIVED ABOUT CASH DEPOSIT OF RS.10 LA C IN THE SAVING BANK ACCOUNT. SUCH PROPOSAL WAS PUT UP BEFORE THE JCIT WHO ACCORDED HIS SANCTION ON 30.03.2016. THE ASSESSING OFFICER ISSU ED NOTICE DATED 30.03.2016, WHOSE COPY IS AVAILABLE ON PAGE 13 OF T HE PAPER BOOK. THE LD. ARS RELIANCE ON THE LETTER DATED 31.03.2016 IS SUED BY JCIT, MEERUT CONVEYING THE APPROVAL TO THE ASSESSING OFFICER, AS A REASON TO INVALIDATE THE INITIATION OF REASSESSMENT PROCEEDIN GS, IS NOT CORRECT. IT IS A FORMAL COMMUNICATION OF THE APPROVAL ALREADY GIVE N AND CONVEYED TO ITA NO.2459/DEL/2017 3 THE AO, WHICH IS APPARENT FROM PAGE 12 OF THE PAPER BOOK, WHICH IS A COPY OF THE ORDER SHEET OF THE ASSESSING OFFICER PL ACED ON RECORD BY THE LD. AR. THIS ALSO STATES THAT ON 28.03.2016, PROPO SAL SEEKING APPROVAL U/S 148 WAS SENT TO THE JCIT AND ON 30.03.2016: AP PROVAL TO ISSUE NOTICE U/S 148 RECEIVED FROM THE OFFICE OF THE JOIN T CIT, MEERUT. NOTICE U/S 148 ISSUED. SINCE THE APPROVAL WAS ACTUALLY AC CORDED ON 30.03.2006, THE ASSESSING OFFICER SWUNG INTO ACTION BY ISSUING THE NOTICE ON THE SAME DATE. UNDER THESE CIRCUMSTANCES , I AM OF THE CONSIDERED OPINION THAT NO EXCEPTION CAN BE TAKEN T O THE INITIATION OF REASSESSMENT PROCEEDINGS. THIS GROUND IS NOT ALLOW ED. 4. OTHER GROUNDS ARE ON THE MERITS OF ADDITIONS MAD E. IT IS SEEN THAT THE ASSESSMENT ORDER HAS BEEN PASSED U/S 144 OF THE ACT, IMPLIEDLY WITHOUT THE ACTIVE PARTICIPATION BY THE ASSESSEE. IN MY CONSIDERED OPINION, THE ENDS OF JUSTICE WOULD MEET ADEQUATELY IF THE IMPUGNED ORDER ON MERITS IS SET ASIDE AND THE MATTER IS REST ORED TO THE FILE OF THE ASSESSING OFFICER. I ORDER ACCORDINGLY AND DIRECT THE ASSESSING OFFICER TO GIVE AN ADEQUATE OPPORTUNITY OF HEARING TO THE A SSESSEE IN RESPECT OF ITA NO.2459/DEL/2017 4 THE ADDITIONS MADE IN THE ASSESSMENT ORDER AND SUST AINED IN THE FIRST APPEAL. 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 18.10.201 7. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 18 TH OCTOBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.