M/S. WESTERN COALFILEDS LTD. NAGPUR,NAGPUR vs. AASESSING OFFICER , DELHI

ITA 131/NAG/2023Status: DisposedITAT Nagpur31 August 2026AY 2013-1437 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Mine Closure Expenses constituted a crystallized liability, supported by judicial precedents from the jurisdictional High Court and other benches. The reopening was also found to be based on a change of opinion without fresh tangible evidence.

What were the facts?

The assessee claimed a deduction of Rs. 401 crores for Mine Closure Expenses, which was allowed in regular assessment. The Assessing Officer reopened the assessment after 4 years, disallowing the claim on the basis that it was an unascertained liability. The CIT(A) upheld the disallowance.

What were the issues?

Whether the provision for Mine Closure Expenses is an allowable business deduction and whether the reopening of assessment under Section 147 was valid.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Appellant: Shri K.P. Dewani, Advocate
For Respondent: Shri Pankaj Kumar, CIT-DR
Hearing: 16.06.2026Pronounced: 31.08.2026

PER KHETTRA MOHAN ROY, AM:

This appeal filed by the assessee is directed against the order of National Faceless Appeal Centre, Delhi, (for short, “CIT(A)”), dated 20/03/2023 passed under section 250 of the Income Tax Act, 1961 (for short, “Act”) which is emanating from the assessment order dated 09.09.2021 passed u/s. 147 of the Act for the Assessment Year (AY) 2013-14. 2. Assessee has raised the following grounds of appeal: 1) The notice issued u/s 148 of I.T. Act 1961 is illegal, invalid and bad in law. Consequent assessment framed thereupon is bad in law and is liable to be cancelled. 2) The learned CIT(A) ought to have held that notice u/s 148 of I.T. Act 1961 is not in accordance with law and consequent assessment framed thereupon is requi

The order continues below.

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