C.I.T., AJMER vs. MAHENDRA SINGH ASOLIYA

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ITA/206/2013HC RajasthanRJHC01030060201323 January 20182 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the ITAT was justified in treating the proceedings initiated under Section 147 read with Section 148 of the Income Tax Act, 1961 as void ab initio. The Court affirmed the view taken by the ITAT, which had relied on its own earlier decision in Commissioner of Income Tax vs. Shri Ram Singh (2008) 306 ITR 343 (Raj.). The reasoning was that the addition made by the Assessing Officer was beyond the scope of the reassessment proceedings initiated under Section 147 read with Section 148. Therefore, the issue was answered in favour of the assessee and against the department. The operative direction was to dismiss the appeal filed by the revenue.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Ajmer (appellant) against the order of the Income Tax Appellate Tribunal (ITAT). The ITAT had allowed the appeal of the assessee, Shri Mahendra Singh Asoliya (respondent), by relying on a previous decision of the Rajasthan High Court. The core of the dispute revolved around proceedings initiated under Section 147 read with Section 148 of the Income Tax Act, 1961. The appellant challenged the ITAT's decision to consider these proceedings as void ab initio. The High Court admitted the appeal and framed a substantial question of law.

What were the issues?

1. Whether, in the facts and circumstances of the case, the ITAT was justified in treating the proceedings initiated under Section 147 read with Section 148 of the Income Tax Act, 1961 as ab initio void? Assessee's contention: The ITAT rightly allowed the appeal by relying on the High Court's decision in Commissioner of Income Tax vs. Shri Ram Singh (2008) 306 ITR 343 (Raj.). The addition made was beyond the scope of Section 147 read with Section 148 of the Income Tax Act. Revenue's contention: The judgment does not record any specific contentions made by the revenue in this appeal before the High Court, other than the fact that they are challenging the ITAT's order.

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 AT JODHPUR D.B. Income Tax Appeal No. 206 / 2013 Commissioner of Income Tax, Ajmer. ----Appellant Versus Shri Mahendra Singh Asoliya, H.No. 162, Dhosar, Teh. Sahada, Bhilwara. ----Respondent _____________________________________________________ For Appellant(s) : Mr.KK Bissa. For Respondent(s) : Mr.Anjay Kothari. _____________________________________________________ HON'BLE MR. JUSTICE K. S. JHAVERI HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI

Judgment / Order 23/01/2018

1.

By way of this appeal, the appellant has challenged the judgment and order of the Tribunal whereby the Tribunal has allowed the appeal of the assessee relying upon the decision of this Court.

2.

While admitting the appeal, this Court framed following substantial question of law :- "Whether in the facts & circumstances of the case, the ITAT was justified in treating the proceedings initiated u/S.147 r/w Sec.148 of the Income Tax Act, 1961 as ab-initio void?"

3.

Section 147 r/w Section 148 of the Income Tax Act. Therefore, the (2 of 2)

view taken by the Tribunal is required to be affirmed.

4.

In that view of the matter, the issue is answered in favour of the assessee and against the department.

5.

Accordingly, the instant appeal is dismissed.

(DR. PUSHPENDRA SINGH BHATI)J. (K. S. JHAVERI)J. S.Phophaliya/-

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