Shri Alok Gupta, New Delhi V. ITO, New Delhi

ITA 2865/DEL/2015

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3329 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 04-05-2017
• Assessment Year: 2005-2006
• Appeal Filed On: 11-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K MEHRACA MS BEDOBANI
• Assessee Lawyers: ADDITIONS OF RS
• Keywords: Reopening of assessment; Reason to believe
• Section: 234B; 147; 148

Judgement Text

PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH - SMC NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER ITA NO.2865/DEL/201 5 ASSESSMENT YEAR : 2005-06 SHRI ALOK GUPTA C-40/44, LAJPAT NAGAR-II, NEW DELHI. PAN AANPG4929K VS. ITO WARD-54 (1) NEW DELHI. (APPELLANT) (RESPONDENT) PER BHAVNESH SAINI, JUDICIAL MEMBER ORDER THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(A) 18, NEW DELHI DATED 19 TH MARCH, 2015 FOR ASSESSMENT. YEAR 2005-06 CHALLENGING REOPENING OF ASSESSMENT U/S 147 /148 OF I.T. ACT AND ADDITIONS OF RS. 14,14,000/- AND RS. 32,59,000/ - WITH INTEREST U/S 234B OF ACT. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE FILED RETURN OF INCOME ON 31 ST JULY, 2005 DECLARING INCOME OF RS. 3,07,850/-. INF ORMATION WAS RECEIVED THROUGH AIR REGARDING DEPOSIT OF RS. 14,14 ,000/- IN BANK ASSESSEE BY : SHRI R.K. MEHRA,CA DEPARTMENT BY: MS.BEDOBANI, SR. DR DATE OF HEARING 04/05/2017 DATE OF PRONOUNCEMENT 09 /05/2017 ITA NO. 2865/DEL/2015 SHRI ALOK GUPTA VS. ITO PAGE 2 OF 4 ACCOUNT OF ASSESSEE WITH CENTRAL BANK OF INDIA. SIN CE THE TRANSACTION WAS NOT REFLECTED IN THE RETURN OF INCOME NOTICE U /S 148 WAS ISSUED ON 22 ND MAY, 2008 AND SERVED UPON ASSESSEE. 3. THE ASSESSING OFFICER FRAMED REASSESSMENT ORDER AND MADE THE ADDITIONS ON ACCOUNT OF UNEXPLAINED DEPOSIT WITH CE NTRAL BANK OF INDIA AND UNEXPLAINED RECEIPT WHILE COMPUTING THE INCOME AT RS. 49,80,850/- .LD. CIT(A) DISMISSED THE APPEAL OF ASSESSEE. 4. THE ASSESSEE CHALLENGED THE REOPENING OF THE ASS ESSMENT AS WELL AS ADDITIONS ON MERIT IN THE PRESENT APPEAL. 5. I HAVE HEARD LD. REPRESENTATIVE OF BOTH THE PART IES AND PERUSED THE MATERIAL ON RECORD. THE VALIDITY OF REASSESSMEN T PROCEEDINGS IS TO BE DETERMINED ON THE BASIS OF REASONS RECORDED FOR REO PENING OF ASSESSMENT. ASSESSEE HAS FILED COPY OF REASONS RECO RDED FOR REOPENING OF ASSESSMENT AT PAGE 34 OF PAPER BOOK. THE SAME RE ADS AS UNDER :- SHRI ALOK GUPTA ASSESSMENT. YEAR 2005-06 AN AIR INFORMATION WAS RECEIVED FROM THE DAO WARD 31(4)/DAO 45 WITH THE INFORMATION THAT THE ASSESSEE SHRI ALOK GUPTA (AANPG.4929-K) HAS DEPOSITED A CASH OF RS. 14,14,00 0/- DURING THE YEAR I.E. ASSESSMENT. YEAR 2005-06 (CENTRAL BAN K OF INDIA). THE INFORMATION WAS RECEIVED IN THIS OFFICE ONLY ON 6.5.2008. SINCE THE LIMITATION OF THIS CASE FOR MAKING/SCRUTI NY/VERIFICATION HAS ALREADY BEEN EXPIRED ON 31/12/2007 THEREFORE IN ORDER TO VERIFY THE GENUINENESS OF THE TRANSACTION, THE CASE IS REQUIRED TO BE RE-OPENED BY ISSUING A NOTICE U/S 148 OF THE I.T . ACT, 1961. I AM FULLY SATISFIED THAT ACTION IS REQUIRED TO TAK E THE CASE FOR SCRUTINY FOR THE ASSESSMENT YEAR 2005-06 THEREFORE NOTICE U/S 148 IS ISSUED. SD/- ITO WARD 32 (3) ITA NO. 2865/DEL/2015 SHRI ALOK GUPTA VS. ITO PAGE 3 OF 4 6. ACCORDING TO THE ABOVE REASONS THE AIR INFORMATI ON WAS RECEIVED REGARDING DEPOSIT OF CASH OF RS. 14,14,000/- IN THE BANK ACCOUNT OF ASSESSEE IN ASSESSMENT YEAR UNDER APPEAL. ASSESSING OFFICER FURTHER NOTED THAT SINCE LIMITATION OF THIS CASE FOR SCRUTI NY HAD ALREADY EXPIRED ON 31 ST DECEMBER 2007, THEREFORE IN ORDER TO VERIFY THE GE NUINENESS OF THE TRANSACTION, THE CASE IS REQUIRED TO BE REOPENE D BY ISSUING NOTICE U/S 148 OF THE I.T. ACT. THE ASSESSING OFFICER FURTHER RECORDED THAT HE IS FULLY SATISFIED THAT ACTION IS REQUIRED TO TAKE THE CASE FOR SCRUTINY FOR ASSESSMENT YEAR UNDER APPEAL. HOWEVER THE REQUIREME NT OF SECTION 147 / 148 OF THE I.T. ACT IS THAT IF THE ASSESSING OF FICER HAS REASON TO BELIEVE THAT ANY INCOME CHARGEABLE TO TAX HAS ESCA PED ASSESSMENT, HE MAY SUBJECT TO THE PROVISIONS OF SECTION 148 TO 153 , ASSESSED OR REASSESSED SUCH INCOME AND ALSO ANY OTHER INCOME CH ARGEABLE TO TAX WHICH HAS ESCAPED ASSESSMENT . THEREFORE BEFORE REO PENING OF THE ASSESSMENT THE ASSESSING OFFICER SHOULD HAVE REASON TO BELIEVE THAT INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT. AS SESSING OFFICER IN THE REASONS DID NOT RECORD ANYTHING IF HE HAS REAS ON TO BELIEVE THAT ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT. TH E ASSESSING OFFICER RECORDED THE REASONS IN THE PRESENT CASE TO TAKE THE CASE FOR SCRUTINY BECAUSE EARLIER LIMITATION HAS EXPIRED FOR MAKING SCRUTINY ASSESSMENT. THUS INGREDIENTS OF SECTION 147 OF THE I.T. ACT HAVE NOT BEEN FULFILLED IN THIS CASE FOR INITIATING THE PROC EEDINGS U/S 147/148 OF THE I.T. ACT. IN VIEW OF THIS MATTER I SET ASIDE TH E ORDER OF AUTHORITIES ITA NO. 2865/DEL/2015 SHRI ALOK GUPTA VS. ITO PAGE 4 OF 4 BELOW AND QUASH THE REOPENING OF THE ASSESSMENT. RE SULTANTLY ALL ADDITIONS MADE IN THE REASSESSMENT ORDER ARE DELETE D. I MAY NOTE THAT ADDITIONS ON MERIT ARE NOT DECIDED BECAUSE THE REAS SESSMENT PROCEEDINGS HAVE BEEN QUASHED. 7. IN THE RESULT APPEAL OF ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT. SD/- ( BHAVNESH SAINI ) JUDICIAL MEMBER DATED: 9 -5-2017 *VEENA* COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. PRINCIPAL CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, ASSISTANT REGISTRAR