2021 (4) TMI 1245 - AT - Income Tax

Reopening of assessment quashed - case made out by the Revenue that Tribunal was of the observation that reopening was made on the dictates of the superior authority and without any application of mind by the concerned AO whereas the same was done on the basis of the information made by the CIT(A) Ahmedabad-V in regard to the revisionary order under Section 263 in the case of Shri Prabhat Karshanbhai Desai for A.Y. 2009-10 one of the assessee herein - HELD THAT - It appears that the proceeding under Section 263 of the Act in respect of Shri Prabhat Karshanbhai Desai for A.Y. 2009-10 has been mentioned by the Tribunal in the order dated 27.06.2019. No observation on merit upon scanning of 263 proceeding is reflecting from the said order particularly the fact as has been placed on record by way of specific statement made by the Revenue in the instant Miscellaneous Application at Page 2 para (i) onwards. Such narration of facts need to be considered in its proper perspective which was not reflecting in the said order passed by the Ld. Tribunal. Thus we find merit in the application filed by Revenue. In the light of the above observation the order is therefore recalled. Registry is directed to put the matter on board for hearing in due course.

Summary

Issues Involved:
1. Appeal seeking to recall the order quashing the proceeding under Section 148 of the Income Tax Act.
2. Discrepancy in the observation made by the Tribunal regarding the initiation of the reopening under Section 148.
3. Consideration of facts and details provided by the Revenue in the Miscellaneous Application.
4. Decision on the Miscellaneous Applications filed by the Revenue.

Analysis:
1. The appeal filed by the Revenue sought to recall the order passed by the Tribunal quashing the proceeding under Section 148 of the Income Tax Act. The Revenue contended that the Tribunal's observation was incorrect as it was based on the information provided by the CIT(A) regarding the revisionary order under Section 263 for a specific assessee. The Revenue argued that the Tribunal did not consider the details furnished during the Section 263 proceeding, leading to an error apparent on the record necessitating the order's recall.

2. The Tribunal considered the arguments presented by both parties and examined the relevant materials on record. It noted that the Tribunal's order did not reflect a proper assessment of the facts presented by the Revenue in the Miscellaneous Application. The Tribunal found merit in the Revenue's application, emphasizing the need to consider the facts in the proper perspective. Consequently, the Tribunal decided to recall the order and directed the matter to be put on the board for further hearing.

3. The Tribunal also addressed multiple grounds of appeal raised by the Revenue in various Miscellaneous Applications. It found that these grounds were identical to those previously dealt with for a different assessment year. In the absence of changed circumstances, the Tribunal allowed the grounds preferred by the Revenue, leading to the allowance of the Miscellaneous Applications filed by the Revenue collectively.

4. In conclusion, the Tribunal pronounced the order in open court on 28/04/2021, allowing the Miscellaneous Applications filed by the Revenue and recalling the order quashing the proceeding under Section 148 of the Income Tax Act. The decision highlighted the importance of considering all relevant facts and details in making judicial determinations in tax matters.