Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 522 - AT - Income TaxReopening of assessment u/s 147 - reassessment proceedings has been made by the AO by alleging that the return was processed u/s. 143(1)(a) of the Act but while processing, the assessee has not computed the income as per the provisions of section 115JB of the Act and paid tax accordingly - HELD THAT:- It is ample clear that there was no fresh or new tangible material before the AO which was not before him during processing of return u/s. 143(1)(a) of the Act. We are in agreement with the contention of ld. CIT DR that in this case, the direction issued by ld. CIT(A) while deleting the addition and on procedural mistake, he has directed the AO to take suitable course available to him u/s. 147 of the Act. Therefore, the limitation as prescribed u/s. 149 of the Act for initiation of proceedings u/s. 147 of the Act and issuance of notice u/s. 148 of the Act does not apply but it is not the case of the appellant/assessee in the present appeal that the initiation of reassessment proceedings is time barred. Therefore, the proposition rendered by ITAT Delhi in the case of Hanemp Properties Pvt. Ltd. [2006 (3) TMI 212 - ITAT DELHI-A] does not provide any fruitful support of the revenue in the peculiar facts and circumstances of the legal contention and grounds of the assessee in the present case. From the reasons recorded by the AO before initiating reassessment proceedings u/s. 147 of the Act and issuance of notice u/s. 148 of the Act, we are unable to see any tangible material in the hands of the AO which was not before him at the time of processing return of income u/s. 143(1)(a) of the Act. Therefore, the provisions rendered by Hon'ble Supreme Court in the case of Kelvinator of India Ltd.[2010 (1) TMI 11 - SUPREME COURT] is applicable in favour of the assessee and consequently, we hold that the AO proceeded to initiate reassessment proceedings u/s. 147 of the Act and issuance of notice u/s. 148 of the Act without any new tangible material and without application of mind merely on the strength of direction of Ld. CIT(A) that the suitable course of action available to the AO under the Act is application of provisions of section 147 of the I.T. Act as the appellant has understated its income by not applying the provisions of section 115JB of the I.T. Act. But there was no new or tangible material before the AO to initiate reassessment proceedings u/s. 147 of the Act. We are unable to see application of mind by the AO of the materials available before him. The AO has not recorded any basis or factum gathered by him after application of mind of the assessment already completed which could reflect that before initiation of reassessment proceedings u/s. 147 of the Act, he applied his mind and thereafter reached to a conclusion that he had reasons to believe that income chargeable to tax has escaped assessment within the meaning of section 147 of the Act empowering him to issue notice u/s. 148 - Decided in favour of assessee.
|