Rakesh Kumar Aggarwal, Delhi V. ITO, ward-40(3), New Delhi

ITA 699/DEL/2020

AI Insights

The case involves Rakesh Kumar Aggarwal, the appellant, contesting the reassessment order passed by the Income Tax Officer (ITO) under Section 147 of the Income Tax Act, 1961, for the Assessment Year 2009-10. The reassessment was based on alleged contrived losses and shifting of profits through Client Code Modification (CCM) as identified by the Ahmedabad Investigation Directorate. The appellant challenged the validity of the reassessment proceedings, arguing that they were initiated beyond the statutory limitation period and without proper jurisdictional basis. The Tribunal examined the legal and factual basis for the reassessment and found multiple jurisdictional defects, leading to the allowance of the appellant's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121635 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 16-05-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 05-02-2020
• Other Referred Cases: Best Cyber City (India) Pvt. Ltd. vs. ITO
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 43

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER I.T.A. No.699/DEL/2020 Assessment Year 2009-10 Rakesh Kumar Aggarwal D-631, Saraswati Vihar, Pitampura Delhi v. ITO Ward-40(3) New Delhi TAN/PAN: AAJPK4003C (Appellant) (Respondent) Assessee by: Shri Amit Goyal, CA Department by: Shri Atiq Ahmed, Sr.DR Date of hearing: 17 05 2023 Date of pronouncement: 17 08 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he capti oned app eal has b ee n f il ed b y the A sse ssee a gainst the or de r of t he C ommissi on er of Inc ome Tax (Appeals)-X IV , N ew D elhi [‘ C IT (A )’ in s h ort ] da ted 02. 12.2 019 aris ing from the assess me nt orde r dat ed 20. 12. 20 16 pass ed by th e Assessing O fficer (A O ) unde r Sect ion 14 7 o f the Income Ta x A ct, 196 1 ( the A ct) c onc er ning A Y 2009- 10. 2. T he grou nds of appea l ra ised b y the assesse e read as unde r: “ 1 . O n t h e f a c t s a n d i n t h e c i r c u m s t a n c e s o f t h e c as e a n d i n l a w , L d . C . I . T . (A ) i s u p h o l d i n g t h e r e - a s s e s s m e n t p r o c e e d i ng . T h e v a l i d i t y o f r e - a s s e s s m e n t p ro c e e d i n g i s i n c o r r ec t a n d n o t i n a c c o r d a n c e w i t h l a w . R e - a s s e s s m e n t p ro c e e d i n g i n i t i a t e d a f t e r a p e r i o d of f o u r y e a r s f r o m t h e e n d o f t h e r e l e v a n t a s s e s s m e n t y e a r w h e r e t h e o r i g in a l a s s e s s m e n t w a s c o m p l e t e d u n d e r S e c t i o n 1 4 3 ( 3 ) i s b a r r e d b y l i m i t a ti o n a n d i s v o i d . I.T.A. No.699/Del/2020 2 A s s e s s i n g o f f i c e r h a s n o t a p p l i e d h i s m i n d i n r e c o rd i n g sa t i s f a c t i o n n o t e f o r r e - o p e n i n g t h e a s s e s s m e n t . I t i s f u r t h e r s u b m i t t e d t h a t n o n - a p p l i c a t i o n o f m i nd b y t h e s u p e r i o r a u t h o r i t i e s w h i l e g i v i n g a p p ro v a l f o r r e - o p e n i n g t he a s s e s s m e n t . 2 . Th a t L e a r n e d C . I . T . (A ) h a s e r r e d i n l a w in c o n f ir m i n g t h e d e c i s i o n o f l e a r n e d a s s e s s i n g o f f i c e r , t h a t t h e a s s e s s e e h a s u se d C M ( C l i e n t C o d e M o d i f i c a t i o n ) i n s h i f t i n g t h e l o s s e s o f R s . 1 8 0 2 9 2 0 /- . I t i s s t a t e d t h a t a s s e s s e e h a s p r o v i d e d a l l t h e r e le v a n t d o c u m e n t s / e v i d e n c e i n s u p p o r t o f l o s s s o i n c u r r e d an d c l a i m i n r e t u r n o f i n c o m e . 3 . L e a rn e d C . I . T . ( A ) h a s n o t c o n s i d e r e d g r o u n d n o .7 w i t h r e g a r d c h a r g i n g i n t e r e s t u n d e r S e c t i o n 2 3 4 B a n d 2 3 4 C o f T he A c t a n d w r o n g l y c o m p u t i n g i n c o m e t a x d e m a n d . 4 . T h a t t h e o r d e r d a t e d 0 2 . 1 2 .2 0 1 9 p a s s e d b y t h e C .I . T . ( A ) i s w r o n g , b a d i n l a w a n d i l l e g a l . ” 3. T he gro unds of a ppea l raise d b y the assessee a re two fol ds; (i ) cha llenge to t he assumpt ion of j urisdic tion unde r S ection 147 r. w . Secti on 148 r. w . Section 1 51 of the Act ; (ii) c halle nge to the act io n of t he A ssessi ng O ffice r in ma king ce rtain addi ti ons/ dis allow ance s on me ri ts in pu rsua nc e of ass umption of jurisdicti on under Section 147 of t he Act. 4. When the matter w as calle d fo r hearin g, the ld. couns el for the asse ssee st ro ngl y v oiced his obj ec tio ns on assumpti on of jurisdicti on a vailable under Sec ti on 147 of t he Ac t and rais ed w ide rangi ng obj ecti ons towa rds lack of j uris di cti on. The obj ecti ons so raise d are deal t w i th in the s uc cee ding pa ra graphs at approp riate pl ace. T he ld. cou nsel a lso ass ai le d t he act io n of the A ssessi ng O ffi cer and C IT (A ) on mer its. 5. T he R even ue, on t he ot he r hand, def ended t he ac tion of the A ssessi ng O f ficer and C IT (A ) on the poi nt of j urisdicti on as w e ll as on meri ts. 6. A s noted a bo ve, t he as sesse e has in ter al ia c ha lle nge d the I.T.A. No.699/Del/2020 3 jurisdicti on of t he Assessi ng O ffi cer assumed un der S ection 147 r. w . Section 148 r. w . Section 151 of the A ct. Si nce the cha l lenge to t he le gal it y of r eopening i nvol ves j uris di ction whic h is fun damenta l a nd goes to the root of t he w hol e contro vers y, it w i ll be app ropria te t o a djudica te t his aspe ct of the ap peal first. 7. T he reasons re corded under Sect ion 148 (2) and a ppro val ther eon b y the P r. CIT unde r Sect io n 151 of the Act bei ng ge rmane to the adj udica tion of j uris dicti onal issue, are repro duced her ei n for eas y re ference: P E R F O R M A F O R R E C O R D I N G T H E R E A S O N S F O R I N I T I A T I N G PR O C E E D I N G S U / S 1 4 7 / 1 4 8 & F O R O B T A I N I N G T H E A P P R O V A L O F T H E P R IN C I P A L C O M M I S S I O N E R O F I N C O M E T A X , - 1 4 , N E W D E L H I 1 . N a m e a n d a d d r e s s o f t h e a s s e s s e e S h . R a k e s h K u m ar R / o D - 6 3 1 , S a r a w a t i V i h a r , P i t a m p u r a , D e l h i . 2 . P A N / G I R N o . A A J P K 4 0 0 3 C 3 . S t a t u s I n d i v i d u a l 4 . D i s t r i c t / W a r d / R a n g e W a r d – 4 0 ( 3 ) , N e w D e l h i 5 . A s s e s s m e n t Y e a r i n r e s p e c t o f w h i c h i t i s p r o p o s e d t o i s s u e n o t i c e u / s . 1 4 8 2 0 0 9-1 0 6 . T h e q u a n t u m o f i n c o m e w h i c h h a s e s c a p e d a s s e s s m e n t R s . 1 8 , 0 2 , 9 2 0 / - 7 . W h e t h e r t h e p r o v i s i o n s o f S e c t i o n 1 4 7 ( b ) i s ' a p p l i s e c t i o n 1 4 7 ( a ) o r 1 4 7 ( b ) o r 1 4 7 ( c ) a r e a p p l i c a b l e o r b o t h s e c t i o n s a r e a p p l i c a b l e S e c t i o n 1 4 7 ( b ) i s a p p l i c a b l e 8 . W h e t h e r t h e a s s e s s m e n t i s p r o p o s e d t o b e m a d e f o r t h e f i r s t t i m e , i f t h e r e p l y i s i n t h e a f f i r m a t i v e , p l e a s e s t a t e : Y e s a . W h e t h e r a n y v o l u n t a r y r e t u r n a s a l r e a d y b e e n f i l e d a n d Y e s I.T.A. No.699/Del/2020 4 b I f s o t h e d a t e s o f f i l i n g t h e s a i d 0 6 / 0 1 / 2 0 1 0 r e t u r n 0 6 / 0 1 / 2 0 1 0 9 I f t h e a n s w e r t o i t e m 8 i s i n t h e N . A n e g a t i v e , p l e a s e s t a t e N . A a T h e i n c o m e o r i g i n a l l y a s s e s s e d - B W h e t h e r i t i s a c a s e o f u n d e r a s s e s s m e n t a t t o o l o w a r a t e , a s s e s s m e n t o f w h i c h h a s b e e n m a d e , t h e s u b j e c t o f e x c e s s i v e r e l i e f o r a l l o w i n g l o s s o r d e p r e c i a t i o n ; - 1 0 . W h e t h e r t h e p r o v i s i o n o f S e c t i o n N . A 1 5 0 ( 1 ) i s a p p l i c a b l e . I f t h e r e p l y i s i n t h e a f f i r m a t i v e , t h e r e l e v a n t f a c t s m a y b e s t a t e d a g a i n s t i t e m n o . 1 0 a n d i t m a y a l s o b e b r o u g h t o u t t h a t p r o v i s i o n s o f s e c t i o n 1 5 0 ( 2 ) w o u l d n o t s t a n d i n t h e w a y o f i n i t i a t i n g p r o c e e d i n g u n d e r S e c t i o n 1 4 7 . N . A . 1 1 . R e a s o n s f o r t h e b e l i e f t h a t i n c o m e h a s e s c a p e d a s s e s s m e n t . A n i n f o r m a t i o n v i a e - m a i l w a s r e c e i v e d f r o m A D I T ( I n v . ) U n i t - 1 ( 3 ) , A h m e d a b a d v i d e l e t t e r N o . A D I T ( I n v ) 1 ( 3 ) / A H D / C C M / D i s s e m i n a t i o n / e - m a i l / 1 5 - 1 6 d a t e d 1 7 . 0 3 . 2 0 1 6 i n r e s p e c t o f C l i e n t C o d e M o d i f i c a t i o n ( C C M ) . D i s s e m i n a t i o n o f b e n e f i c i a r y c l i e n t s w h o h a v e t a k e n c o n t r i v e d l o s s e s a n d s h i f t e d o u t p r o f i t s d u r i n g t h e F . Y . 2 0 0 8 - 0 9 t o 2 0 1 1 - 1 2 . T h e A h m e d a b a d I n v e s t i g a t i o n D i r e c t o r a t e , a s a n i n s t i t u t i o n a l r e s p o n s e t o o r c h e s t r a t e d m i s u s e f o r c l i e n t c o d e m o d i f i c a t i o n f o r t a x e v a s i o n , c a r r i e d o u t c o o r d i n a t e d l i m i t e d p u r p o s e s u r v e y s u s 1 3 3 A o f t h e I n c o m e T a x A c t , 1 9 6 1 a t t h e p r e m i s e o f 1 2 b r o k e r s a n d f e w o f t h e i r c l i e n t s a c r o s s I n d i a o n 2 3 . 0 3 . 2 0 1 5 . t h e s u r v e y r e p o r t w a s p r e p a r e d b y t h e A D I T ( I n v ) U n i t - 1 3 ) , A h m e d a b a d o n t h e b a s i s o f d a t a r e c e i v e d f r o m N a t i o n a l s t o c k E x c h a n g e ( N S E ) . A f t e r a n a l y s i s o r d a t a r e c e i v e d f r o m N S E a n d a f t e r c o n s i d e r i n g t h e c o n t e n t i o n o f b r o k e r s , i t w a s c o n c l u d e d b y t h e A D I T t h a t C C M h a s b e e n u s e d a s a t o o l f o r t a x e v a s i o n a n d o n l y s e t t l e d t r a d e s h a v e b e e n c o n s i d e r e d t o a r r i v e a t t h e b e n e f i c i a r i e s . I.T.A. No.699/Del/2020 5 T h e a s s e s s e e w h o h a v e t a k e n l o s s e s o f R s . 1 , 0 0 , 0 0 0 / - a n d a b o v e a n d a s s e s s e s w h o h a v e s h i f t e d o u t p r o f i t s o f R s . 1 , 0 0 , 0 0 0 / - a n d a b o v e h a v e b e e n c o n s i d e r e d . T h e r a t i o n a l e o f s e t t i n g R s . 1 , 0 0 , 0 0 0 / - a s l i m i t i s t h e t h r e s h o l d m o n e t a r y l i m i t o f R s . 1 , 0 0 , 0 0 0 / - f o r r e - o p e n i n g c a s e s b e y o n d f o u r y e a r s . A s p e r i n f o r m a t i o n r e c e i v e d , i t i s s e e n t h a t t h e a s s e s s e e d u r i n g t h e F . Y . 2 0 0 8 - 0 9 h a s l o s s e s s h i f t e d i n o f R s . 1 8 . 0 2 , 9 2 0 / - r e s u l t i n g i n n e t r e d u c t i o n i n i n c o m e o f R s . 1 8 , 0 2 , 9 2 0 / - t h r o u g h C l i e n t C o d e M o d i f i c a t i o n . I n v i e w o f a b o v e , I h a v e r e a s o n t o b e l i e v e t h a t t h e i n c o m e o f R s . 1 8 , 0 2 , 9 2 0 / - h a s e s c a p e d a s s e s s m e n t o n t h e r e a s o n o f t h e f a i l u r e o n t h e p a r t o f t h e a s s e s s e e t o d i s c l o s e f u l l y a n d t r u l y a l l m a t e r i a l f a c t s n e c e s s a r y f o r a s s e s s m e n t a s p e r p r o v i s i o n o f t h e s e c t i o n 1 4 7 o f t h e I . T . A c t , 1 9 6 1 . T h e r e f o r e , i t i s a f i t c a s e f o r i s s u a n c e o f n o t i c e u / s . 1 4 8 o f t h e I n c o m e T a x A c t , 1 9 6 1 t o t h e a s s e s s m e n t . I n c o m e T a x O f f i c e r W a r d - 4 0 ( 3 ) , N e w D e l h i 1 2 . W h e t h e r t h e P r . C o m m i s s i o n e r o f I n c o m e T a x i s s a t i s f i e d o n t h e r e a s o n s r e c o r d e d b y t h e A s s e s s i n g O f f i c e r t h a t i t i s a f i t c a s e f o r t h e i s s u e o f n o t i c e u n d e r S e c t i o n 1 4 8 o f t h e I n c o m e T a x A c t , 1 9 6 1 Y e s , I a m s a t i s f i e d , t h i s i s a f i t c a s e f o r t h e i s s u a n c e o f N o t i c e u / s . 1 4 8 o f t h e I n c o m e T a x A c t , 1 9 6 1 . P r . C o m m i s s i o n e r o f I n c o m e T a x D e l h i - 1 4 , N e w D e l h i 8. W i t h r e fe re nc e to t h e r e as o ns s o r e c o r de d a n d appr o v a l g r a nt e d t he re on b y t h e P r . CI T u n d e r S e c ti on 1 5 1 o f t he A c t , t h e l d. co u n s el fo r t he as se ss e e c o nt e n d s t h a t ; (i ) t he a s se ss m e nt i n t h e i n st a n t c as e w a s o r i g i na ll y co mp l e t e d un de r S ec t i on 1 43 (3 ) o f t h e A c t o n 20. 1 2. 20 16 a n d a ll t he m at e ri a l f a ct s w er e fu l l y a n d t r ul y d i scl os ed a s n ec e ss a r y fo r t h e as se ss m e nt a n d c on se qu en t l y t h e j u r i s di ct i o n a s su m e d u n de r S e c t i on 1 4 7 o f t h e A ct I.T.A. No.699/Del/2020 6 i s w i t h o ut d i sc h a r g i ng t he a d di t i o na l b ur d e n c a st by t h e 1 s t p ro vi so t o S e c t i o n 1 47 o f th e A ct . T h e l d . co u n s el c o n t en d s t ha t t he ma nd a to ry j ur i s di ct i on al r e q u i r e me nt un de r 1 s t p ro v i s o w il l no t be fu l f i l l e d i f t h e re as o n s do n o t, by t h e m s el v e s, in di c a t e t he n a tu re o f fa i lu re al l e ge dl y c o mm i t te d b y t h e a sse ss ee t o ma k e fu l l an d t ru e di s c l o s ur e o f a l l m a t e r i a l f ac t s. T h e a ss es see c o n te n ds t h a t t h e re a so ns r e c o r d e d re qu i r e s t o e x p la i n t h e a l l e g e d s upp r e s si on o f f a ct s c o mm i t t e d b y t he a s se ss e e a n d m e re l y r e p e a ti n g t h e st a t ut or y l an gu a g e o f t he pr ovi si on r e g a rd i n g t h e fa i l u re on t h e pa r t o f t he a ss es se e t o ma ke f u l l a nd t r u e d is c l os u re o f a l l mat e ri al fa c t s i s no t , by i t s el f, su ffi c i en t . In th e a bs e n c e o f co mp l i a nc e o f t he 1 s t pr o v i s o, t he is su an c e o f n o t i c e d at e d 31 . 0 3. 2 01 6 u nd e r S e c t ion 1 4 8 o f t h e A ct i s ba rr e d b y l i mi t at i on . (i i ) t h e ld . c o u n se l su b m i ts t ha t on a b a re g l a n c e o f re as o ns r e c o r d e d i t c a n b e o bs e r v e d t ha t t h e A s s e ss i ng O ffi c e r h as ma de ba l d a ll e g a t io ns to w a r d s s hi ft i n g o f p r o fi ts t hr o u gh C lie nt C od e M odi f ic a t i o n ( C C M ) ba se d o n s o c a l l e d i n f or m a ti on re c ei ve d f ro m A h me d a b a d U n it o f t h e D e p ar t m e n t b u t ho w e v e r n o sp ec i fi c de t a i l s o f t ra ns a c t i o n s i n v ol vi ng C C M i s di s c e rn i b l e f ro m the r e a so ns re c or d e d . T he r e a s on s re c or de d ar e, t hu s , w i t ho u t the i d en t i t y o f t he t ra ns a c t i o n s a l l e g e d t o be so ur c e o f c o nt ri ve d l o sse s a n d sh i f ti n g o f pr o fi t s. T he r ea so n s r e c o r d e d a r e t h u s c l e ar l y va g ue a n d no n - de s c r i p t a n d he nc e su c h r ea so n s ca nn o t b e c on st r u e d t o h ol d ‘ r e a so n t o b e l i e ve ’ t o w a r ds e sc a p e me nt o f c h a r g e a b l e i n co me a s c on t e mp la t e d i n S e c t i o n 14 7 o f t he A c t . Con se q u e n t ly, t h e c o n d i t io n o f ma i n pr ov i si on s o f er s t w hi le S e c t i on 14 7 o f t h e A c t i s a l s o n ot fu l f i l l e d. (i i i ) Th e A ss es si n g O ffi c e r a s p e r ro w no. 8 o f t h e a pp r ova l me m o (r e p r od uc e d a b ov e ) h a s pr o c e e de d o n t h e as su mp ti o n t ha t t he I.T.A. No.699/Del/2020 7 a ss es s m e n t pr o p os e d t o be ma d e for t h e fi r s t t i m e in sh ar p c on t r a d i c t io n t o t he fa ct o n re co r d t ha t a ss es s m e n t w as a l r e a d y c ar ri e d ou t e a r li e r vi de o r d e r d a te d 24. 0 8. 20 11 a n d h en ce t he re a so ns r e co rd e d s u ff e r s fr o m f ac t u a l e r ro r o f fo u nda t i on a l na t u re . (i v ) t he a s se s s me nt p ro c e e d i n gs ha ve be e n i ni t i at e d o n t he b as i s o f i nc o m pl et e a n d v a gu e in fo r ma t i o n re c e i v ed fr o m A D I T ( Inv . ) A h me d a b a d. Th e A sse s si ng O f fi c e r ha s pr oc ee d e d o n th e d o t t e d l in es ba se d o n su c h i n f or m a t io n a s ca n b e a pp ar e n t ly se e n f ro m t he re a so ns re c or d e d i n row no. 1 1 o f t h e ap pr o v a l me m o r e p ro du c e d a bo v e. N o spe c i f i c a ll e g a t io n ap p e a rs t o h a v e b e e n m ad e a ga i n st t he a ss es se e b y t he I n ve s ti g a t i on U n i t a s c a n b e se e n fro m t h e r e as o n s re c or d e d i t se l f. T he b e l i e f d r aw n by t h e A sse ss i n g O ff i c e r i s w i t h o ut a ny s u b st a n t i v e m a t e r i al a g a i ns t t he a s se ss ee a n d is me r e l y a pr e t e ns e . (v ) t he P r. C I T h a s a c t ed m e c ha ni ca l l y a nd p e r fu n c t or i l y w h i le gr a n t i n g ap pr o v a l u nde r S e c t i o n 1 51 o f th e A c t b as ed o n s uc h va gue i n fo r m a t i on . T h e a ppr ov a l h as be e n g ra n t e d , f ir st l y, on t he b a si s o f t he a s se rt i o n t h a t S ec t i on 14 7( b ) o f th e A c t i s a p pl i c a b l e a n d se c o n dl y, t h e a s se s s me n t i s p r op os e d t o b e m a d e fo r t he fi r s t t i me w hi c h i s y e t a ga i n i nc o r r e c t . T he l d. c o u ns e l c on t end s t h a t S e c t i o n 14 7 (b ) do e s no t e x i st u nd e r l a w a nd w a s d e le t e d l o ng b ac k w . e . f. 01 . 0 4. 1 9 8 9 . E v e n i f i t i s a ss u m ed t ha t c l a us e (b ) to Ex p l a n a t i o n t o S ec t i on 1 4 7 h a s b e e n pu rp o r t e d l y re fe r re d, i n t h a t c a s e a l so, su c h a pp r o va l r e q ui r e s t o b e co nd e m ne d a s i t g la r i n g l y su ff e r s fr o m n o n a pp l i ca t i on o f m i nd . Cl a u se ( b) t o Ex p l a n a t i o n 2 a pp l ie s onl y w he re a r et ur n o f i n c o m e h a s b e e n fur ni s he d b y t h e as se s se e b u t n o a ss es s m e n t ha s b ee n m a d e a n d f ur th er s u bj e ct t o o t he r r e q u i r e me n t s. A s p oi n te d o u t , in t h e in st a n t c a s e, t he re t u r n fi le d ha d b e e n d ul y su b je c t e d t o r e g u l a r a s se ss m e n t u n d e r S ec t i on 14 3( 3) o f t he A ct a n d I.T.A. No.699/Del/2020 8 t he re fo r e , cl a u se ( b) t o Ex pl a na ti on 2 t o S ec t i o n 14 7 w oul d n ot a pp l y. A r e fe r e n c e t o t h e j u dg m e nt o f th e H o n ’b le Del hi H i gh C o u rt i n t h e c as e o f Be st C y b e r ci t y (I nd ia ) P v t . L t d. v s . IT O , 41 4 I T R 38 5 (D e l ) i s ma de . 9. W e fi n d p al p a b le me r i t i n t he p l e a o f t h e as se s se e t h a t t h e a ct i o n o f t h e A ss e ssi ng O ff ic e r to a ssu m e j ur i s d ic ti on is w i th ou t sa n c t i o n o f la w . A pe r u sa l o f t he ca se r e c o r d w ou l d s ho w t ha t a c o mp l et e d a s se ss m e n t h a s b e e n r e o p e n e d o n t he gr o u nds o f pu r po rt e d m i s us e o f N a ti on a l St o ck E xc ha nge P l a t form to o b t a i n c on t r i v e d l o ss a n d si ph on ou t p r o fi t s ea r n e d h a v i n g r e g a r d to t h e i n fo r m a t i on d is s e m i na t e d b y A D I T ( In v . ) A h m ed ab a d . T he A sse s si n g O ff ic e r h a s ne i t h e r in c o rp or a t e d tr a n sa c ti on -w i se d e t a i l i n t he re a so n s re c o r d ed a l le gi n g f ic t i t i ou s l os se s n or i t ha s be e n re c or d e d an yw he re i n t h e re as se ss m e nt p ro ce e di ng s. T h e so c a l l e d be l ie f fo r m e d t o w a r ds e s c a pe me nt an d in i t i a ti o n o f ve xa t i o u s pr o c e e d i n g s i s a p pa r en tl y w i t h ou t a ny e l e m e nt a r y det ai l s. O n a re a di ng o f re a so n s re c o r d e d , i t g i v e s a n i mp re ss i o n t ha t A sse ss i n g O ff ic e r ha s ac t e d o n d o t te d l i ne s a t th e d i c t at e o f i nv e st i ga t io n w i n g w it h o ut a pp l i ca t i o n o f mi nd o n t h e b a si c an d e l e m e nta ry f a ct s. Be si d e s, w hi l e re c or d i n g t h e r e a s on s, th e A ss e s si n g O f fi c er h as no t t ak en c og ni za nc e o f t h e fa c t th at ass e s s m e n t ha s a lre a dy be e n fr a m e d u nd er S e c t io n 1 43 (3 ) o f t he A c t i n t he pa st. O nc e t h e a ss es s m e n t h a s be e n c a rr ie d o u t u nd er Se c t i o n 14 3( 3) o f t h e A c t , t he 1 s t pr ov i s o c a st s e x e mp l a r y b u r d e n on t he R e v e n u e t o shu n e m ba rg o o f l i mi t a t i o n . T h e o n u s l i e s on t h e R e v e nu e t o p o i nt o u t t ha t th er e i s a fa i l u r e o n t he p a r t o f t h e a s se sse e t o d i s c l o s e ma t e r i a l fa ct s f ul l y a nd t ru ly i n d e e d . Th e o n u s pl a c ed b y 1 s t p ro v i so h a s b e e n c l e a rl y ov e r l o o ke d i n t h e in st an t c as e. F ur th e r mo r e , it i s a p p a r e n t t h a t P r. CI T ha s a l so a c t e d p er fu n c t o r i l y w hi l e gr a n t i ng a p p r o va l s ou gh t by A s se ss i n g O ffi c e r u n de r t he s h e l t e r o f S e c t i o n 147 (b ) o f t h e A ct I.T.A. No.699/Del/2020 9 a s p o i n t e d ou t o n b e h a l f o f t he a ss es se e . 10 . W e ha ve t hu s no he s i t a t i o n t o h o l d t ha t th e j u ri s di c t i o n a ss u m ed u n de r S e c t i o n 1 4 7 o f t h e A c t i n t h e in st an t c ase su ff e rs fr o m m u l t i p l e j ur is d i c t i on al d e fe c t s a nd h e n c e su c h a ss u m pt i on o f j ur i s d i c t io n is ou ts i de t h e l eg al fra m e w or k s o p rov i d e d. T he a c t i o n i nv o k e d by t he A sse s s in g O ff i ce r a n d P r. C I T ar e j u sti c i a b l e t h e j ur i s d i c t io n a ss u m e d c a n n ot b e re a c ti v a t e d b e y o n d th e p a r t i c ul a r st a g e a n d a ft e r a l a pse o f t i m e l i mi t . I t i s e v i d e nt t h at no t i c e i ss ue d un d e r S ec t i on 1 4 8 i s w i t ho u t j ur i s d i c t i on a n d c on sequ e n t re a ss es s me n t fr a m e d fo r A ss e s s me n t Y ea r 2 0 0 -1 0 i n qu e sti o n i s ba d i n l aw a n d he n c e q ua s he d. 10 . I n t h e li gh t o f t he de l i n e a t i on s m ad e a b ov e, w e ar e n ot i nc li n e d t o ad ju di c a t e th e a c t io n o f th e A sse s si ng O ffi c e r o n me r i t s. 11 . I n t h e re s ul t , th e a p p e a l o f th e a s se ss e e i s t hu s al l ow e d. Order was pronounced in the open Court on 17/08/2023. Sd/- Sd/- [KUL BHARAT] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /08/2023 Prabhat