M/S UNIQUE INTERNATION,KANPUR V. DY. CIT CIRCLE-1(1)(1), KANPUR

ITA 519/LKW/2024

AI Insights

The case involves M/s. Unique International appealing against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi, which pertained to the assessment year 2017-18. The primary issues in the appeal included the legality of the reopening of the assessment under various sections of the Income Tax Act, 1961, and the validity of the notices issued under these sections. The appellant contested the jurisdiction and procedural correctness of the reopening and reassessment process, including the absence of necessary approvals and the lack of a Document Identification Number (DIN) on the notice. However, before the tribunal could deliberate on these issues, the appellant opted to withdraw the appeal following the settlement under the Vivad se Vishwas Scheme.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31880 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KRISHNA SHARMA; ADDL
• Assessee Lawyers: ASHISH JAISWAL
• Keywords: Reopening of assessment
• Section: 147; 148; 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “A”, LUCKNOW BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI NIKHIL CHOUDHARY, ACCOUNTANT MEMBER ITA No.519/LKW/2024 (Assessment Year: 2017-18) M/s. Unique International 980-D, Wazidpur, Jajmau, Kanpur-208010. v. The Dy. CIT, Circle- 1(1)(1) Aaykar Bhawan, 16/69, Civil Lines, Kanpur- 208001. PAN:AAAFU3756D (Appellant) (Respondent) Appellant by: Shri Ashish Jaiswal Respondent by: Shri. Sanjeev Krishna Sharma, Addl CIT(DR) Date of hearing: 19 02 2025 Date of pronouncement: 19 03 2025 O R D E R PER KUL BHARAT, VICE PRESIDENT.: This appeal, by the assessee, is directed against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 24.07.2024, pertaining to the assessment year 2017-18. The assessee has raised the following grounds of appeal: - “1. That the Id.AO has erred in reopening assessment u/s 147 of the Income Tax Act, 1961 without jurisdiction in absence of valid issuance of notice u/s 148 of the IT Act, 1961 mandatorily required for reopening of assessment u/s 151A of the Income Tax Act, 1961. 2. That the Id.AO has erred in reopening the assessment without jurisdiction as the order passed u/s 148A(d) of the Act required to passed before reopening u/s 148 is without approval of specified authority as required u/s 151 of the IT Act, 1961 making the reopening and reassessment void ab initio, invalid and unlawful being without jurisdiction. 3. That the Id.AO has erred in issuing notice u/s 148 of the IT Act, 1961 without jurisdiction and requisite approval of specified authority as required u/s 151 of the IT Act, 1961 making the reopening and reassessment void ab initio, invalid and unlawful being without jurisdiction. ITA No.519/LKW/2024 Page 2 of 3 4. That the Id.AO has erred in issuing notice u/s 148 of the IT Act, 1961 without bearing the Document identification Number (DIN) on the notice making the notice invalid and unlawful and consequently resulting in proceeding being void ab initio and without jurisdiction. 5. That the Id.AO has erred in reopening the assessment u/s 148 of the IT Act, 1961 on the basis of reason recorded based on the borrowed information from DDIT(inv.), Unit-1, Kanpur without application of mind and credible or corroborative evidence to corroborate the live link or nexus of the appellant. 6. That the Id.CIT(A) as well as Id.AO has erred in making addition of unsecured loan of Rs.62,00,000/- u/s 68 of the IT Act, 1961. 7. That the Id.CIT(A) as well as Id.AO has erred in making addition of unsecured loan u/s 68 of the Act even though the appellant had discharged the onus to explain the source of unsecured loan before the AO under the law as was in existence for the instant year and was not required to explain the source of source as the amendment has been brought prospectively by Finance Act, 2021. 8. That the assessment proceeding and its orders has been passed by the Id.AO and confirmed by the Id.CIT(A) is arbitrary and prejudice resulting the proceeding and its Order bad in facts as well as law deserve to be quashed. 9. The appellant craves leave to introduce, modify or withdraw any ground of appeal with your honours kind permission.” 2. At the outset, the Ld. Counsel for the assessee submitted that the dispute has been settled under the Direct Tax Vivad se Vishwas Scheme, 2024 and prayed for withdrawal of the appeal. And a letter dated 18.02.2025 along with Form no. 2 and challan of tax is placed on record. The relevant contents of the letter dated 18.02.2025 is reproduced as under: - “That the appellant very humbly submit before your honour that the appellant has filed Form 1 under the Vivaad Se Vishwas Scheme to settle the litigation against which the Form 2 has been issued by the designated authority, moreover the tax has also been paid by the appellant, copy of Form 2 and challan of tax paid is enclosed. In view of above, the appellant humbly requested your honour to kindly pass the appropriate order as your honour deem fit in the interest of justice.” 3. The Learned Departmental Representative has no objection for withdrawal of the appeal. 4. In view of the facts discussed above, we permit the assessee to withdraw this appeal. Accordingly, the appeal is dismissed as withdrawn. However, a liberty is given to the assessee for approaching the Tribunal for restoration of this appeal in the event of failure of settlement of tax disputes. ITA No.519/LKW/2024 Page 3 of 3 5. In the result, the appeal of the assessee is dismissed as withdrawn. Order pronounced in the open Court on 19/03/2025. Sd/- Sd/- [NIKHIL CHOUDHARY] [KUL BHARAT] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 19/03/2025 Vijay Pal Singh, (Sr. PS) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard file By order //True Copy// Assistant Registrar "