MOHD. IMRAN,UTTAR PRADESH V. ITO WARD-3(2), BULANDSHAHR

ITA 8352/DEL/2019

AI Insights

The case involves an appeal by Mohd. Imran against the order of the Commissioner of Income-tax (Appeals), Ghaziabad, which arose from an earlier order passed by the Income Tax Officer, Ward 3(2), Bulandshahr under sections 144/147 of the Income Tax Act, 1961. The primary contention in the appeal was the alleged wrongful assumption of jurisdiction under section 147 by the lower authorities. The Tribunal examined the reasons recorded for reopening the assessment and found that there was a fundamental error in the year of assessment considered, leading to a conclusion of non-application of mind in the decision-making process.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474555 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMIT KATOCH
• Assessee Lawyers: SOMIL AGARWAL; SHERY JAIN
• Section: 147

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.8352/Del/2019 Assessment Year: 2010-11 Mohd. Imran, C/o M/s RRA TAXINDIA, D-28, South Extension Part-I, New Delhi. PAN: AAPPI3263A Vs Income-tax Officer, Ward-3(2), Bulandshahr. (Appellant) (Respondent) Assessee by : Shri Somil Agarwal, Advocate & Shri Shery Jain, Advocate Revenue by : Shri Amit Katoch, Sr. DR Date of Hearing : 19.03.2025 Date of Pronouncement : 21.03.2025 ORDER PER ANUBHAV SHARMA, JM: This is an appeal preferred by the assessee against the order dated 31.07.2019 of the Commissioner of Income-tax (Appeals), Ghaziabad (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeal No.376188511270118 arising out of the appeal before it against the order dated 27.12.2017 passed u/s 144/147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the ITO, Ward 3(2), Bulandshahr (hereinafter referred to as the Ld. AO). ITA No.8352/Del/2019 2 2. On hearing both the sides, we find that the assessee is primarily challenging the impugned orders on the basis of alleged wrongful assumption of jurisdiction u/s 147 of the Act. 3. Although the ld. DR has defended the assumption of jurisdiction, what we find is that in the reasons recorded for reopening, the copy of which is available at pages 33-34 of the paper book, the AO has mentioned the fact that the return of the assessee which was filed on 14.01.2011 was examined to conclude that the same did not have the explanation of the assessee of the alleged cash transactions reported in AIR information. 4. Now, as a matter of fact, for the impugned assessment year 2010-11, the return has been filed on 24th March, 2011 and not on 14.01.2011. At the same time, it is established that the return filed on 14.01.2011 pertained to the AY 2009-10. The copy of acknowledgement is available at page 35 of the paper book and the ld. AR has sufficiently established on the basis of the certified copy of the same available at page 36 of the paper book that vide receipt No.0301026942, the assessee’s return for AY 2009-10 was filed on 14th January, 2011. Thus, where the reasons as recorded reveal that the return for the relevant year 2010-11 was not even taken cognizance of, then, the only conclusion that can be drawn is that there was utter non-application of mind in recording the reasons and even the approval so granted. The reasons are not only narration of information, but, on its face reflect non application of mind. Where a fact so important as to which return of the assessee was considered is ITA No.8352/Del/2019 3 recorded incorrectly, then, the only conclusion that can be drawn is that there was no application of mind. 5. Thus, we are inclined to allow ground No.1 and 2 as raised. The appeal of the assessee is allowed. The impugned assessment is quashed. Order pronounced in the open court on 21.03.2025. Sd/- Sd/- (M. BALAGANESH) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 21st March, 2025. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi "