MAGADH ENGINEERING WORKS,BERMO V. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI, DELHI

ITA 14/RAN/2025

AI Insights

This case involves an appeal by Magadh Engineering Works against the order of the CIT(A), NFAC, Delhi, concerning the assessment year 2014-15. The primary contention was the validity of the notice issued under section 148 of the Income Tax Act, 1961, which led to a reassessment under section 147 read with section 144. The assessee argued that the notice was issued beyond the permissible four-year period and lacked the necessary findings to justify the reopening of the assessment. The tribunal agreed with the assessee, noting that the reasons for reopening did not indicate any failure on the part of the assessee to disclose material facts, as required by the proviso to section 147.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717144 (ITAT-RANCHI)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 10-01-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PER BENCH; KHUBCHANDT PANDYA
• Assessee Lawyers: ADITYA KHANDELWAL
• Section: 147; 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE S/ RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER Magadh Engineering Works, Kathara, BNermo, Jharkhand PAN/GIR No. (Appellant Revenue by Per Bench This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 14/10130329 for the assessment year 2. Shri Aditya Khandelwal, Khubchand T Pandya, 3. It was the submission of ld AR t return of income on 3.12.2014. The assessment had been completed u/s.143(3) of the Act on 30.9.2016. It was the submission that IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI S/HRI GEORGE MATHAN, JUDICIAL MEMBER RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA No.14/RAN/2025 Assessment Year : 2014-15 Magadh Engineering Works, Kathara, BNermo, Vs. National Faceless Assessment Centre, Delhi . AAMFM 4003 H (Appellant) .. ( Respondent Assessee by : Shri Aditya Khandelwal, AR Revenue by : Shri Khubchand T Pandya, Date of Hearing : 19/08/202 Date of Pronouncement : 19/08/2 O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A), NFAC, Delhi dated 12.11.2024 in Appeal No.CIT(A) NFAC/2013 for the assessment year 2014-15. Shri Aditya Khandelwal, ld AR appeared for the assessee. Shri Khubchand T Pandya, ld Sr DR represented on behalf of the revenue. It was the submission of ld AR that the assessee had filed his original return of income on 3.12.2014. The assessment had been completed u/s.143(3) of the Act on 30.9.2016. It was the submission that P a g e 1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, , JUDICIAL MEMBER AND RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER National Faceless Assessment Centre, Delhi Respondent) Aditya Khandelwal, AR ld Sr DR 2025 2025 This is an appeal filed by the assessee against the order of the ld 12.11.2024 in Appeal No.CIT(A) NFAC/2013- appeared for the assessee. Shri represented on behalf of the revenue. hat the assessee had filed his original return of income on 3.12.2014. The assessment had been completed u/s.143(3) of the Act on 30.9.2016. It was the submission that Printed from counselvise.com ITA No.14/RAN/2025 Assessment Year : 2014-15 P a g e 2 | 3 subsequently, notice u/s.148 of the Act came to be issued on 27.3.2021. It was the submission that consequential assessment u/s.147 r.w.s 144 of the Act came to be completed on 31.3.2022. It was the submission that the reasons recorded are specifically mentioned in pages 1 to 3 of the assessment order. It was the submission that as the impugned assessment year is 2014-15 and original assessment u/s.143(3) of the Act has also been completed on 30.9.2016, the notice issued u/s.148 of the Act on 27.3.2021 is also beyond four years period. It was the submission that the compulsory requirement as per proviso to section 147 of the Act is that the reasons recorded must specify the failure on the part of the assessee to disclose fully and truly all materials facts necessary for his assessment. It was the submission that there was no finding of the Assessing Officer in the reasons recorded that there was any failure on the part of the assessee to disclose fully and truly all material facts for the purpose of assessment. It was the submission that on perusal of the reopening is liable to be quashed. 4. In reply, ld Sr DR vehemently supported the order of the AO and ld CIT(A). 5. We have considered the rival submissions. A perusal of the reasons recorded as specified in the assessment order at pages 1 to 3 clearly shows that the reasons are not on account of the failure on the part of the assessee to disclose fully and truly all materials facts required for his Printed from counselvise.com ITA No.14/RAN/2025 Assessment Year : 2014-15 P a g e 3 | 3 assessment. In fact, a perusal of the reasons recorded shows that the information has been taken by the AO out of the information which has been provided by the assessee in the course of original assessment proceedings itself. This being so, the reasons recorded are violative of the provisions of section 147 of the Act. Therefore, we are of the view that the reasons recorded are unsustainable and consequently, the same stands quashed. Consequently, the consequential assessment order passed u/s.147 r.w.s 144 of the Act stands quashed. 6. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 19/08/2025. Sd/- sd/- (RATNESH NANDAN SAHAY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi ; Dated 19/08/2025 B.K.Parida, SPS (OS) Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Ranchi 1. The Appellant : Magadh Engineering Works, Kathara, BNermo, Jharkhand 2. The Respondent: National Faceless Assessment Centre, Delhi 3. The CIT(A)- NFAC, Delhi 4. Pr.CIT, 5. DR, ITAT, Ranchi 6. Guard file. //True Copy// Printed from counselvise.com "