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Facts
The assessee's appeal for AY 2018-19 challenged the validity of the reopening of assessment. The Assessing Officer initiated proceedings under Section 147 to examine cash deposits but ended up re-estimating the turnover.
Held
The Tribunal held that the reopening itself was not sustainable in law because the Assessing Officer did not make any addition based on the grounds for reopening, citing precedents.
Key Issues
Whether the reopening of assessment under Section 147/148 is valid when no additions were made by the Assessing Officer based on the reasons for reopening?
Sections Cited
147, 144, 148
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Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
Date of hearing 02.07.2025 Date of pronouncement 02.07.2025 ORDER This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1069788004(1), dated 18.10.2024 involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.
It emerges at the outset that the assessee’s first and foremost argument challenges the validity of the impugned reopening itself since the learned Assessing Officer had set into motion section 148/147 proceedings to examine the issue of cash deposits of Rs.1,04,22,000/- whereas he ended up to re-estimate the turnover in question @ 8%; respectively.
This being the clinching factual position, I hereby quote Ranbaxy Laboratory Vs. CIT (2011) 336 ITR 136 (Del) and CIT Vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom.) to conclude that such a reopening itself is not sustainable in law once the learned Assessing Officer had not made any addition qua the above sole reason. Ordered accordingly.