M/S SUNNY CONSTRUCTION & CO.,KODERMA vs. ACIT,CIRCLE 1(1), HAZARIBAGH

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ITA 196/RAN/2018Status: DisposedITAT Ranchi15 July 2020AY 2010-112 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reassessment proceedings were initiated beyond the four-year period from the end of the relevant assessment year without recording any failure on the part of the assessee to disclose material particulars. Therefore, the reassessment was quashed.

What were the facts?

The Assessing Officer initiated reassessment proceedings under Section 147/148 of the Income Tax Act, 1961, for AY 2010-11, based on the assessee's P/L account. The assessee's appeal arose from the CIT(A)'s order.

What were the issues?

Whether reassessment proceedings initiated beyond four years are valid without demonstrating failure of the assessee to disclose material facts.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 37

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH “E” Court at KOLKATA

Before: Shri S.S.Godara & Dr. A.L. Saini

O R D E R PER BENCH (Oral):- This assessee’s appeal for assessment year 2010-11 arises against the Commissioner of Income Tax (Appeals)-Hazaribagh’s order dated 09.05.2018 passed in case No.10028/HZB/2017-18, involving proceedings u/s 147 r.w.s. 143(3) the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

2.

It transpires at the outset that the Assessing Officer had initiated section 148 r.w.s. 147 proceedings against the assessee as per the notice dated 24.03.2017 after recording the following reasons:- “It has been observed that the assessee has debited Rs.14,72,991/- in the P/L account under the sub-head ‘Revenue’. It is quite evident from the record that the expenditure made under this sub-head is not revenue expenditure and hence books of account are required to be examined. It is a sort of recovery against revenue (i.e.

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