SUBHASH SINGH vs. ASSISTANT COMMISSIONER OF INCOME TAX

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ITA/36/2019HC RajasthanRJHC02023679201919 July 2019Author: S. RAVINDRA BHAT,SANJEEV PRAKASH SHARMA3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the reopening of assessment under Section 147/148 of the Income Tax Act, 1961, was justified. The Court found that the reopening was based on information received as a consequence of search and seizure proceedings, which provided the Revenue with a reason to believe, as contemplated by the relevant provisions. The Court also opined that the ITAT, in exercising its appellate powers, was justified in remanding the matters for fresh consideration, requiring a proper analysis of the available materials and facts by the Revenue Authority. Therefore, the appeals challenging the ITAT's remand orders were dismissed.

What were the facts?

These are six Income Tax Appeals filed by various assessees, including Subhash Singh, Faujdar Cold Storage Private Ltd, Natthi Singh HUF, Vimlesh Faujdar, Bharatpur Cold Storage Private Limited, and Sushma Singh, against the Assistant Commissioner of Income Tax, Circle-Bharatpur. The appeals challenge orders passed by the Income Tax Appellate Tribunal (ITAT). The ITAT had remanded the matters for fresh consideration. The assessees questioned the reopening of assessments under Section 147/148 of the Income Tax Act, 1961. The reopening was based on information received as a consequence of search and seizure proceedings. The High Court reviewed the ITAT's decision to remand the matters.

What were the issues?

1. Whether the reopening of assessment under Section 147/148 of the Income Tax Act, 1961, was valid, considering the reopening was based on information received due to search and seizure proceedings. Assessee's Contentions: The assessees questioned the validity of the reopening of their assessments under Section 147/148 of the Income Tax Act, 1961. Revenue's Contentions: The Revenue contended that there was a valid reason to believe for reopening the assessment, as the reopening was a consequence of information received from search and seizure proceedings. The Revenue supported the ITAT's decision to remand the matter.

Which sections of the Income-tax Act were involved?

Section 147,Section 148

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 36/2019 Subhash Singh, Having His Address At Old Bayana Bus Stand, Bharatpur In The State Of Rajasthan. ----Appellant Versus Assistant Commissioner Of Income Tax, Circle- Bharatpur, Bharatpur, Having Its Address At Pai Bagh, Bharatpur In The State Of Rajasthan. ----Respondent with D.B. Income Tax Appeal No. 25/2019 Faujdar Cold Storage Private Ltd, Having his address at Old Bayana Bus Stand, Bharatpur in the State of Rajasthan Assessee-Appellant versus Assistant Commissioner Of Income Tax, Circle- Bharatpur, Bharatpur, Having Its Address At Pai Bagh, Bharatpur In The State Of Rajasthan. Respondent with D.B. Income Tax Appeal No. 26/2019 Natthi Singh HUF Having his address at Old Bayana Bus Stand, Bharatpur in the State of Rajasthan Assessee-Appellant versus Assistant Commissioner Of Income Tax, Circle- Bharatpur, Bharatpur, Having Its Address At Pai Bagh, Bharatpur In The State Of Rajasthan. Respondent with D.B. Income Tax Appeal No. 27/2019 (2 of 3) [ITA-36/2019] Vimlesh Faujdar Having his address at Old Bayana Bus Stand, Bharatpur in the State of Rajasthan Assessee-Appellant versus Assistant Commissioner Of Income Tax, Circle- Bharatpur, Bharatpur, Having Its Address At Pai Bagh, Bharatpur In The State Of Rajasthan. Respondent with D.B. Income Tax Appeal No. 34/2019 Bharatpur Cold Storage Private Limited, Having his address at Old Bayana Bus Stand, Bharatpur in the State of Rajasthan Assessee-Appellant versus Assistant Commissioner Of Income Tax, Circle- Bharatpur, Bharatpur, Having Its Address At Pai Bagh, Bharatpur In The State Of Rajasthan. Respondent with D.B. Income Tax Appeal No. 35/2019 Sushma Singh Having his address at Old Bayana Bus Stand, Bharatpur in the State of Rajasthan Assessee-Appellant versus Assistant Commissioner Of Income Tax, Circle- Bharatpur, Bharatpur, Having Its Address At Pai Bagh, Bharatpur In The State Of Rajasthan. Respondent (3 of 3) [ITA-36/2019] For Appellant(s) : Mr. Siddharth Ranka HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA

Judgment 19/07/2019

1.

The ITAT in all these appeals has remanded the matter for fresh consideration, so the Assessee had questioned the re- opening of assessment in these proceedings. The contentions wee negated with respect to re-assessment under Section 147/148 concurrently by all the four.

2.

Having regard to the record, which clearly reveals that the re-opening was on account of information received, as a consequence of search and seizure proceedings. This Court is of the opinion that consistent view taken by the Revenue Authorities that there was reason to believe within the meaning of expression, is correct as far as the challenge to the remand order is concerned, the Court is of the opinion that the ITAT exercising its appellate powers was justified in requiring proper analysis of the materials and facts available for the Revenue Authority.

3.

The appeals, are therefore dismissed. All pending applications also stand dismissed.

(SANJEEV PRAKASH SHARMA),J (S. RAVINDRA BHAT),CJ Anil Makwana/65

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