Asha Mihani, V. Income Tax Officer - 1,

ITA 50/JAB/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5726 (ITAT-JABALPUR)
• Duration Of Justice: 2 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-04-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 21-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D R LATHORIYA
• Assessee Lawyers: SANJAY MISHRA
• Keywords: Reopening of assessment
• Section: 147

Judgement Text

1 I.T.A. NO.50 /JAB/2014 (ASSESSMENT YEAR :2005-06 ) IN THE INCOME TAX APPELLATE TRIBUNAL, JABALPUR BEFORE S/SHRI N.S. SAINI (AM) N. K. CHOUDHRY (JM ) I.T.A. NO.50 /JAB/2014 (ASSESSMENT YEAR :2005-06 ) ASHA MIHANI, PROP. MIHANBI DEPARTMENTAL STORES, GANDHI NAGAR, ITARSI. VS. ITO-1, ITARSI PAN/GIR NO. : AFVPM 6071 R ( APPELLANT ) .. ( RESPONDENT ) APPELLANT BY : SH. SANJAY MISHRA RESPONDENT BY : SH. D.R.LATHORIYA DATE OF HEARING : 05-04-2016 DATE OF PRONOUNCEMENT : 05-04. 2016 O R D E R PER N.K.CHOUDHRY, JM THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATING FROM AN ORDER OF THE LD CIT(A), JABALPUR DATED 22.11.2013, IN THE MATTER OF ASSESSMENT U/S.144/147 OF THE I.T.ACT, 1961. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS: 1. THAT THE LD. CIT (APPEALS) ERRED BOTH IN LAW AND FACTS IN UPHOLDING THE REOPENING CASE UNDER SECTION 147/148 OF THE INCOME TAX ACT, 1961. 2. THAT THE LD. CIT (APPEALS) FAILED TO CONSIDER THAT THERE WAS NO MATERIAL ON RECORD WHICH CAN BE SAID TO BE SUFFICIENT TO REOPE N THE CASE OF ASSESSEE RELATING TO A.Y. 2005-06. 2 I.T.A. NO.50 /JAB/2014 (ASSESSMENT YEAR :2005-06 ) 3. THAT, THE LEARNED CIT (APPEALS) ERRED BOTH IN LAW AND FACTS IN MAINTAINING THE ADDITION OF RS.67,503/- ON ACCOUNT OF INCOME FROM REPAIRING. 4. THAT, THE LEARNED CIT (APPEALS) ERRED BOTH IN LAW AND FACTS IN MAINTAINING THE ADDITION OF RS.5,00,000/- ON ACCOUNT OF INVESTMENT IN PURCHASE OF REMOVABLE PROPERTY. 5. THAT, THE ASSESSMENT ORDER HAS PASSED, WHICH IS CONTRARY TO THE REASONS RECORDED BY THE ASSESSING OFFICER. HENCE, THE WHOLE ASSESSMENT ORDER IS ILLEGAL, ERRONEOUS AND UNJUSTIFIED. THIS FACT O UGHT TO HAVE BEEN CONSIDERED BY THE CIT (APPEALS). 3. AT THE OUTSET, AT THE TIME OF HEARING, LD COUNSEL F OR THE ASSESSEE ARGUED ONLY LEGAL ISSUE I.E. REOPENING OF ASSESSMENT U/S.147 OF THE ACT TAKEN IN GROUND NO.1 OF APPEAL. HE SUBMITTED THAT THERE WAS NO MATERIAL ON RE CORD TO REOPEN THE ASSESSMENT U/S.147 OF THE ACT BY THE AO. LD COUNSEL SUBMITTED THAT THE LD CIT(A) UPHELD THE ACTION OF THE AO WITHOUT ADJUDICATING THE ISSUE OF REOPENING OF ASSESSMENT U/S.147 TAKEN BEFORE HIM. LD D.R. DID NOT HAVE ANY RECORD TO ARG UE THE APPEAL. 4. HAVING CONSIDERED THE SUBMISSIONS OF THE PARTIES, IN O UR CONSIDERED VIEW, THE REOPENING OF ASSESSMENT UNDER SECTION 147 REQUIRES TO BE ADJUDICATED BY THE LD CIT(A). ON PERUSAL OF IMPUGNED ORDER, WE FIND THAT THE LD C IT(A) HAS MERELY STATED THAT THE REOPENING OF ASSESSMENT HAS BEEN MADE AVAILABLE TO THE ASSESSEE IN THE COURSE OF HEARING AND WITHOUT GIVING ANY REASON TO THIS ASPECT, ADJUDICATED THE ADDITIONS MADE BY THE AO. WE FIND MERITS IN THE SUBMISSIONS OF LD COUNSEL FOR THE ASSESSEE THAT THE REOPENING OF ASSESSMENT U/S.147 HAS NOT BEEN ADJUDICATED BY LD CITA) AND, ACCORDINGLY, RESTORE THIS ISSUE BACK TO THE FILE OF THE LD CIT(A) TO ADJUDICATE THE ISSUE OF REOPENING OF ASSESSMENT U/S.147 OF THE ACT ON MERITS. 3 I.T.A. NO.50 /JAB/2014 (ASSESSMENT YEAR :2005-06 ) 5. SINCE, THE WE HAVE RESTORED THE ISSUE OF REOPENING O F ASSESSMENT FOR FRESH ADJUDICATION BY LD CIT(A), THE OTHER CONNECTED ISSUES RA ISED BY THE ASSESSEE IN THE GROUNDS OF APPEAL ARE ALSO RESTORED BACK TO THE FILE OF LD CIT(A) TO DECIDE AFRESH IN ORDER TO AVOID ANY ANOMALY AND MULTIPLICITY OF JUDICIAL DECI SIONS ON THIS ISSUE. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5 /4/2016 . SD/- SD/- (N.S.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER J UDICIAL MEMBER JABALPUR, DATED 5 / 4/2016 PARIDA , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT : ASHA MIHANI, PROP. MIHANBI DEPARTMENTAL STORES, GANDHI NAGAR, ITARSI. 2. THE RESPONDENT: ITO-I,ITARSI 3. THE CIT(A) CONCERNED 4. CIT . BHOPAL 5. DR, ITAT, JABALPUR 6. GUARD FILE. BY ORDER, //TRUE COPY// SR. PS, ITA T, CAMP: JABALP UR