DCIT(LTU), New Delhi V. M/s. Rural Electrification Corp. Ltd., New Delhi

ITA 6098/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90955 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 24-04-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 11-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIKRAM SAYAY
• Assessee Lawyers: MAYANK MOHANKA
• Keywords: Reopening of assessment
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: F : NEW DELHI BEFORE SHRI I. C. SUDHIR, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, AC COUNTANT MEMBER ITA NO. 6098/DEL/2013 ASSESSMENT YEAR: 2003-04 DCIT, VS. RURAL ELECTRIFICATION CORP. LTD. NEW DELHI. CORE-IV, SCOPE COMPLEX, 7, LODHI ROAD, NEW DELHI. (PAN AAAC R4512R) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIKRAM SAYAY, SR. DR RESPONDENT BY : SHR I MAYANK MOHANKA, FCA ORDER PER I.C. SUDHIR, JUDICIAL MEMBER THE REVENUE HAS IMPUGNED FIRST APPELLATE ORDER WHEREBY THE LD. CIT(A) HAS QUASHED THE ORDER OF THE ASSESSMENT MADE BY THE AO U/S 147/143(3) OF THE ACT. 2. HEARD AND CONSIDERED THE ARGUMENTS ADVANCED BY THE PARTIES IN VIEW OF ORDERS OF THE AUTHORITIES BELOW, MATERIAL AVAILABLE ON RECORD AND THE DECISIONS RELIED UPON. 3. LIKE THE ASSESSMENT YEAR 2004-05 IN THE PRE SENT ASSESSMENT YEAR ALSO THE REOPENING PROCEEDINGS HAVE BEEN INITIATED ON THE BA SIS THAT THE ASSESEE HAD ITA NO. 6098/DEL/2013 2 TREATED BOND ISSUES EXPENSE AS REVENUE WHICH THE A O HELD AS CAPITAL IN NATURE. IN BOTH THE YEARS, THE REOPENING OF ASSESSMENT HAS BEEN MADE FOUR YEARS AFTER THE END OF ASSESSMENT YEAR AND BEFORE SIX YEARS OF THE END OF ASSESSMENT YEAR. AO WHILE RECORDING THE REASONS HAS NOT RECORDED THA T THE ALLEGED ESCAPEMENT OF INCOME IN THE MATTER WAS BY REASONS OF THE ASSESSEE HAVING MADE FULL AND TRUE DISCLOSURES IN THE RETURN OF INCOME. THE ORIGINAL A SSESSMENT WAS FRAMED U/S 143(3) AND THE NOTICE U/S 148 WAS ISSUED BEYOND TH E PERIOD OF FOUR YEARS FROM THE END OF THE ASSESSMENT YEAR. LD. CIT(A) RESPECT FULLY FOLLOWING THE DECISION OF HONBLE JURISDICTIONAL DELHI HIGH COURT IN THE CASE OF ASSESSEE ITSELF FOR THE ASSESSMENT YEAR 2004-05 VIDE ORDER DATED 23.4.2013 IN WP(C)7943/2011 HAS HELD THAT THE AO WAS REQUIRED TO RECORD A FINDING IN THE REASONS THAT THE ALLEGED ESCAPEMENT OF INCOME WAS DUE TO THE ASSESSEES FAIL URE TO DISCLOSE ALL MATERIAL FACTS FULLY AND TRULY IN THE RETURN OF INCOME. THE LD. CIT(A) HAS ACCORDINGLY HELD THE IMPUGNED ORDER OF REASSESSMENT IN THE PRESENT C ASE AS BAD IN LAW AND HAS QUASHED IT ACCORDINGLY. 4. IN ABSENCE OF REBUTTAL OF THE ABOVE FINDIN G OF THE LD. CIT(A) THAT WHILE RECORDING THE REASONS THE AO HAS NOT RECORDED THAT THE ALLEGED ESCAPEMENT OF INCOME IN THE MATTER WAS BY REASONS OF THE ASSESSEE NOT HAVING MADE FULLY AND TRULY DISCLOSURE IN THE RETURN OF INCOME, WE ARE O F THE VIEW THAT THE LD. CIT(A) HAS RIGHTLY HELD THE REASSESSMENT IN QUESTION AS IN VALID AND QUASHED IT RESPECTFULLY FOLLOWING THE RATIO LAID DOWN BY THE H ONBLE JURISDICTIONAL DELHI HIGH ITA NO. 6098/DEL/2013 3 COURT IN THE CASE OF ASSESSEE ITSELF ON AN IDENTIC AL ISSUE FOR THE ASSESSMENT YEAR 2004-05. THE SAME IS UPHELD. THE GROUND IS ACCORDIN GLY REJECTED. 5. IN THE RESULT APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 0 TH APRIL, 2015. SD/- SD/- (INTURI RAMA RAO) ( I.C. S UDHIR ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE 30 TH APRIL, 2015 *VEENA COPY OF ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR BY ORDER ASSISTANT REGISTRAR, ITAT