VINKAS ESTATES PVT. LTD.,KOLKATA V. DCIT,CIR. 9(2), KOLKATA

ITA 451/KOL/2024

AI Insights

The case involves Vinkas Estates Private Limited, which appealed against the orders of the CIT(A), National Faceless Appeal Centre, Delhi, for the assessment years 2010-2011 and 2011-2012. The primary contention was the validity of the reopening of the assessment by the A.O. under section 147 without serving a notice under section 148 and not providing reasons for the reopening. The Tribunal noted that the A.O. did not respond to the objections raised by the assessee nor provided the required documents and reasons for the reopening, leading to the acceptance of the assessee's averments and the quashing of the notices issued under section 148.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 361014 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2010-2011
• Other Referred Cases: GKN Driveshafts (India) Ltd.
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MONALISA PAL MUKHERJEE
• Keywords: Reopening of assessment; Assessment record
• Section: 147; 133(6)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA Nos.450 & 451/KOL/2024 (निर्धारण वर्ा /Assessment Years : 2011-2012 & 2010-2011) Vinkas Estates Private Limited 27A, Waterloo Street, 1st Floor Room No.105, Kolkata Vs DCIT, Circle-9(2), Kolkata PAN No. :AABCV 6848 B (अपीलधर्थी /Appellant) .. (प्रत्यर्थी / Respondent) निर्धाररती की ओर से /Assessee by : None (Adjournment letter filed) रधजस्व की ओर से /Revenue by : Ms. Monalisa Pal Mukherjee, Sr. DR सुनवाई की तारीख / Date of Hearing : 21/05/2025 घोषणा की तारीख/Date of Pronouncement : 21/05/2025 आदेश / O R D E R Per Bench : These two appeals are filed by the assessee against the separate orders passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, both dated 05.01.2024 for the assessment years 2011-2012 & 2010- 2011. 2. None appeared on behalf of the assessee, however, an adjournment application has been filed on behalf of the assessee on the ground which is not acceptable looking to the facts and circumstances of the case. Accordingly, the adjournment application filed by the assessee is rejected and appeals of the assessee being disposed off after considering the submission of Ms. Monalisa Pal Mukherjee, Sr. DR, who appeared on behalf of the revenue as well as the facts available on record. ITANos.450&451/Kol/2024 2 3. The grounds given by the assessee remained unsubstantiated. Here it must be mentioned that the appeals have been filed by the assessee on 14.03.2024 and both the appeals have been posted on multiple occasions. 4. In the present appeal, a few order sheet entries would have importance. The order sheet entries on 21.05.2024, read as under :- 6. The order sheet entries on 06.08.2024, reads as under :- ITANos.450&451/Kol/2024 3 7. The order sheet entries on 08.08.2024, reads as under :- 8. The order sheet entries on 24.10.2024, reads as under :- ITANos.450&451/Kol/2024 4 9. Further, a perusal of the said order sheet entries show that there are hearings on 09.01.2025, 06.03.2025 & 28.03.2025. The status of the assessment records remains the same. A perusal of the statement of facts for both the years under consideration, which were the reason for calling for the records, read as under :- The appellant is a Private limited company registered in the year 1995, resident in India and engaged in the business of real estate development and construction. During the assessment year under consideration, the assessee filed its return of income on 29.09.2010 showing a total income of Rs. 43,07,150/-. The return was processed u/s 143(1) on 25.02.2011. Subsequently DIT (I&CI), Jaipur, asked for some information/documents related to the sale of property/land. All the papers/ documents as required were duly submitted. Later on, the A.O. reopened the assessment and initiated the proceedings u/s 147 without serving any notice u/s 148. The A.O. did not provide any reason for reopening of the assessment and issued notice u/s 142(1). The appellant asked the A.O. to provide the reason for reopening of assessment and raised its objection on the reopening. Time and again assessee raised its objection. But the Ld. A.O. did not reply to the objection raised nor passed any comment or order on the objection raised by the assessee and completed the assessment. The A.O. failed to follow the guidelines laid by Hon'ble Supreme Court in GKN Driveshafts (India) Ltd. The Ld. A.O. issued notices u/s 133(6) to several parties, which were duly complied by the concerned parties. The A.O. never rejected the documents submitted by the assessee nor did he object the transactions made during the year by the assessee. During the course of assessment proceedings, the appellant furnished various details and supporting together with statement of accounts as required by the Learned A.O. While completing the assessment the Learned A.O. made various additions to the returned income on account of expenditure claimed. Being aggrieved the appellant filed an appeal against the order of the A.O., before the CIT (Appeals), Kolkata-3. The Ld. CIT (A) did not apply his mind and treated the reopening as valid. The LD. CIT (A) even did not follow the guidelines laid by the Hon'ble Supreme Court in GKN Driveshafts (India) Ltd. The appeal was filed by the assessee on 18.09.2015. However, till January 2021 no notice of hearing was received by the assessee. During covid situation several records of the assessee were mutilated, misplaced and/or lost. The assessee asked for adjournment of hearings. The assessee applied to the A.O. for supply of records and documents to prepare suitable reply and make submission. However, no records were provided by the department. ITANos.450&451/Kol/2024 5 Ld. CIT (A) arbitrarily passed the order and confirmed various additions. 10. As it is noticed that even after such a long time opportunity after opportunity having been granted to the revenue to prove its stand, the revenue has chosen not to provide the information. In absence of the details having been provided by the revenue, the Tribunal is left with no other option but to accept the averments made by the assessee. Once the averments made by the assessee are accepted, the notice issued u/s.148 of the Act has to be quashed as there is no other alternative. Since it is a matter of record that the ld.AO did not supply the reasons recorded for issuance of notice u/s.148 of the Act, in spite of several requests from the assessee’s side. Consequently, the notice issued u/s.148 of the Act for both the assessment years stands quashed. 11. In the result, both appeals of the assessee are allowed. Order dictated and pronounced in the open court on 21/05/2025. Sd/- (SANJAY AWASTHI) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 21/05/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// "