SHREE JEENSHASHAN SEVA SHIKSHA SANSKAR SANKUL TRUST,UJJAIN V. INCOME TAX OFFICER, EXEMPTION, UJJAIN

ITA 288/IND/2023

AI Insights

The case involves Shree Jeenshashan Seva Shiksha Sanskar Sankul Trust, which appealed against the orders of the lower authorities concerning an assessment for the year 2011-12. The primary contention was the validity of the reopening of the assessment by the AO under section 147, initiated through a notice under section 148. The appellant argued that the AO did not obtain the required approval from higher authorities as per section 151, rendering the notice and subsequent assessment invalid. The Tribunal agreed with the appellant, leading to the quashing of the assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470255 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Other Referred Cases: National Thermal Power Co. Ltd. Vs. CIT (1998) 229 ITR 383 (SC)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEAPPELLANTRAISEDALEGALCLAIMTHATTHE; FORREVENUERESPONDENTDIDNOTDISPUTETHEADMISSIBILITYOF; FORREVENUE; SHRIASHISHPORWAL
• Assessee Lawyers: SHRI PAVAN VED
• Keywords: Invalid notice
• Section: 148; 143(3); 12A

Judgement Text

"Page 1 of 9 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER ITA No.288/Ind/2023 Assessment Year: 2011-12 Shree Jeenshashan Seva Shiksha Sanskar Sankul Trust, Abhudayapuran, Near Toll Naka, Barnagar Road, Ujjain बनाम/ Vs. ITO (Exemption), Ujjain (Assessee/Appellant) (Revenue/Respondent) PAN: AAMTS1801R Assessee by Shri Pavan Ved, AR Revenue by Shri Ashish Porwal, Sr. DR Date of Hearing 08.01.2025 Date of Pronouncement 30.01.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order of first appeal dated 29.05.2023 passed by learned Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 31.03.2011 passed by learned ITO, Exemption, Ujjain [“AO”] u/s 143(3) r.w.s. 147 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2011-12, the assessee has filed this appeal on following grounds raised in Form No. 36: Shree Jeenshashan Seva Shiksha Sanskar Sankul ITA No. 288/Ind/2023 – AY 2011-12 Page 2 of 9 “1. The Id. CIT(A) erred in upholding validity of reopening. The reopening of assessment is invalid for various reasons. 2. The Id. CIT(A) erred in treating the appellant trust as unregistered when learned CIT(E) had already granted certificate u/s 12A after the trust had made necessary amendments. 3. Fresh claim: the Ld. CIT(A) erred in confirming Unsecured loan as income. 4. The Id. CIT(A) erred in not disposing all the grounds raised in the detailed submission of appeal. 5. The appellant reserves right to add amend or alter any or all the ground of appeal on or before the date of hearing” 2. The background facts leading to present appeal are such that the AO issued notice dated 07.06.2016 u/s 148 to assessee-trust for undertaking action u/s 147. In response, the assessee filed return of income on 13.09.2016. The AO also issued notices u/s 143(2)/142(1) which were duly complied by assessee. Finally, the AO completed assessment vide order dated 22.12.2017 u/s 143(3) r.w.s. 147 after making certain adjustments and thereby determining total income at Rs. 16,19,470/-. Aggrieved, the assessee carried matter in first-appeal but did not get any success. Now, the assessee has come before us in next appeal assailing the orders of lower- authorities. 3. Before us, Ld. AR for assessee/appellant raised a legal claim that the AO has undertaken proceeding u/s 147 through notice dated 07.06.2016 u/s 148 after recording reasons. But, however, the AO has not obtained any approval from higher authorities as mandated by section 151. Therefore, the issuance of notice u/s 148 itself was illegal and consequently the entire Shree Jeenshashan Seva Shiksha Sanskar Sankul ITA No. 288/Ind/2023 – AY 2011-12 Page 3 of 9 assessment framed by AO u/s 147 was also invalid and unsustainable. Ld. AR submitted that this claim of assessee is a legal claim; goes to the root of the matter; does not call for any new evidence; and can be decided on the basis of material already held on record. Therefore, in view of the decision in National Thermal Power Co. Ltd. Vs. CIT (1998) 229 ITR 383 (SC), the assessee’s claim must be admitted and adjudicated. 4. Ld. DR for revenue/respondent did not dispute the admissibility of assessee’s claim for adjudication but, however, demanded time to call for a report from AO qua the approval u/s 151. Therefore, the hearings were adjourned from time to time and sufficient opportunities were given to the revenue for producing copy of approval. Ultimately, the Ld. DR for revenue could submit following letters of AO: Shree Jeenshashan Seva Shiksha Sanskar Sankul ITA No. 288/Ind/2023 – AY 2011-12 Page 4 of 9 Shree Jeenshashan Seva Shiksha Sanskar Sankul ITA No. 288/Ind/2023 – AY 2011-12 Page 5 of 9 Shree Jeenshashan Seva Shiksha Sanskar Sankul ITA No. 288/Ind/2023 – AY 2011-12 Page 6 of 9 Dated.22.08.2024 Date 31.08.2024 Shree Jeenshashan Seva Shiksha Sanskar Sankul ITA No. 288/Ind/2023 – AY 2011-12 Page 7 of 9 Shree Jeenshashan Seva Shiksha Sanskar Sankul ITA No. 288/Ind/2023 – AY 2011-12 Page 8 of 9 5. Ld. DR read over the contents of these letters of AO in the open Court and narrated the reporting made therein by AO. 6. We have considered submissions of both sides. At first, we admit the legal claim raised by assessee in terms of National Thermal Power Co. Ltd. Vs. CIT (1998) 229 ITR 383 (SC) that the approval u/s 151 was not obtained by AO from higher authorities. To adjudicate this claim, we refer the letters of AO re-produced above. The AO has clearly reported that the approval u/s 151 is not available/traceable in the records of revenue. Section 151 clearly prescribes that no notice u/s 148 shall be issued by AO without obtaining approval from prescribed higher authorities, on the reasons recorded, that it is a fit case for the issue of notice. Since the revenue authorities are unable to produce the approval u/s 151, the notice issued by AO u/s 148 become an invalid notice and consequently the entire assessment framed by AO u/s 143(3) r.w.s. 147 also becomes invalid. Therefore, in present case, agreeing with Ld. AR’s submissions, we quash the assessment-order passed by AO. The assessee succeeds in its claim. 7. Since we have quashed the assessment-order itself, adjudication of other grounds/claims by us is not required. Even otherwise, neither side Shree Jeenshashan Seva Shiksha Sanskar Sankul ITA No. 288/Ind/2023 – AY 2011-12 Page 9 of 9 has chosen to make any submission qua other grounds/claims during hearing, therefore also no adjudication is required from us. 8. Resultantly, this appeal is allowed. Order pronounced by putting on notice board as per Rule 34 of ITAT Rules, 1963 on 30/01/2025 Sd/- Sd/- (DINESH MOHAN SINHA) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 30/01/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore "