RAJASTHAN FINANCIAL CORPORATION, Jaipur V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6, Jaipur

ITA 322/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 6537 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 08-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RUNI PAL CIT DHK
• Assessee Lawyers: SANJIV KR MATHUR
• Keywords: Reopening of assessment
• Section: 143(3); 142(1); 147; 148; 139

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES B, JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; ,OA JH LANHI XLKA ] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA, AM & SHRI SANDEEP GOSAIN, JM VK;DJ VIHY LA -@ ITA NO. 322/JP/2019 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2011-12 RAJASTHAN FINANCIAL CORPORATION, UDYOG BHAWAN, TILAK MARG, JAIPUR, RAJASTHAN. CUKE VS. D.C.I.T., CIRCLE-6, JAIPUR. LFKK;H YS[KK LA -@THVKBZVKJ LA -@ PAN/GIR NO.: AACCR 2385 J VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI SANJIV KR. MATHUR (CA) JKTLO DH VKSJ LS @ REVENUE BY : SMT. RUNI PAL (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 02/09/2020 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 08/09/2020 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A), AJMER DATED 07/01/2019 FOR THE A.Y. 2011-12 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. THE HEARING OF THE APPEAL WAS CONCLUDED THROUGH VIDEO CONFERENCE IN VIEW OF THE PREVAILING SITUATION OF COVID-19 PANDEMIC. ITA 322/JP/2019_ RAJASTHAN FINANCIAL CORP. VS DCIT 2 3. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED FOR REOPENING OF ASSESSMENT U/S 147 OF THE ACT AND ALSO FOR THE DISALLOWANCE OF RS. 3.00 LACS PERTAINING TO PRIOR PERIOD EXPENSES. 4. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE A.O. ISSUED NOTICE U/S 148 OF THE ACT ON 16/02/2017 AFTER EXPIRY OF 4 YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR. 5. FROM THE RECORD, WE FOUND THAT THE ORIGINAL ASSESSMENT WAS FRAMED U/S 143(3) OF THE ACT WHEREIN THE A.O. ISSUED NOTICE U/S 142(1) OF THE ACT WHEREIN QUERY WAS RAISED WITH REGARD TO PRIOR PERIOD EXPENSES OF RS. 3.00 LACS. THE ASSESSEE VIDE HIS SUBMISSION DATED 19/02/2014, COPY OF WHICH IS PLACED AT PAGE NO. 32 OF THE PAPER BOOK, PROVIDED THE INFORMATION OF PRIOR PERIOD EXPENSES VIDE PARA NO. 3 OF THE LETTER. AFTER CONSIDERING THE ASSESSEES EXPLANATION, NO DISALLOWANCE WAS MADE. THEREAFTER, NOTICE U/S 148 OF THE ACT WAS ISSUED AFTER EXPIRY OF FOUR YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR FOR REOPENING OF ASSESSMENT IN VIEW OF THE ALLEGATION THAT THE PRIOR PERIOD EXPENSES ARE LIABLE TO BE DISALLOWED. AS PER FIRST PROVISO OF SECTION 147, WHERE AN ASSESSMENT UNDER SUB-SECTION (3) OF SECTION 143 OF THE ACT HAS BEEN MADE FOR THE RELEVANT ASSESSMENT YEAR, NO ACTION SHALL BE TAKEN U/S 147 OF THE ACT AFTER THE EXPIRY OF ITA 322/JP/2019_ RAJASTHAN FINANCIAL CORP. VS DCIT 3 FOUR YEARS FROM THE END OF RELEVANT ASSESSMENT YEAR UNLESS ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR SUCH ASSESSMENT YEAR BY REASON OF THE FAILURE ON THE PART OF THE ASSESSEE TO MAKE A RETURN U/S 139 OR IN RESPONSE TO A NOTICE ISSUED UNDER SUB-SECTION (1) OF SECTION 142 OR SECTION 148 OF THE ACT OR TO DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR ASSESSMENT FOR THAT ASSESSMENT YEAR. 6. IN THIS CASE, ORIGINAL ASSESSMENT FOR THE A.Y. 2011-12 IN RESPECT OF THE ASSESSEES INCOME WAS COMPLETED U/S 143(3) ON 19/03/2014 AND AT THE TIME OF ASSESSMENT PROCEEDINGS, ALL THE RELEVANT ACCOUNTS, RECORDS AND INFORMATION WERE MADE AVAILABLE TO THE A.O. AND THE ASSESSEE HAD MADE A FULL AND TRUE DISCLOSURE OF ALL THE PARTICULARS NECESSARY FOR COMPLETION OF ASSESSMENT. THEREAFTER, THE A.O. ISSUED A NOTICE U/S 148 OF THE ACT ON 16/02/2017. THE DETAILS REGARDING ALL THE REASONS WERE AVAILABLE BEFORE THE A.O. AND NO NEW FACT CAME TO THE NOTICE OF THE A.O. THEREAFTER. ACCORDINGLY, WE DO NOT FIND ANY MERIT IN THE REOPENING OF ASSESSMENT WHEN THERE WAS NO FAILURE ON THE PART OF THE ASSESSEE TO MAKE A RETURN U/S 139 OF THE ACT OR TO DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR THE ASSESSMENT. ACCORDINGLY, WE ARE INCLINED TO AGREE WITH THE SUBMISSION OF THE LD AR SHRI SANJIV ITA 322/JP/2019_ RAJASTHAN FINANCIAL CORP. VS DCIT 4 KR. MATHUR THAT THERE IS NO LEGALITY IN REOPENING OF ASSESSMENT IN VIEW OF PROVISO TO SECTION 147 OF THE ACT. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 08 TH SEPTEMBER, 2020. SD/- SD/- LANHI XLKA JES'K LH 'KEKZ (SANDEEP GOSAIN) (RAMESH C SHARMA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 08/09/2020 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- RAJASTHAN FINANCIAL CORPORATION, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE D.C.I.T., CIRCLE-6, JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 322/JP/2019) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR