INFRA DEVELOPERS ,SHIVPURI vs. INCOME TAX OFFICER, ASHOKNAGAR

ITA 454/AGR/2026Status: DisposedITAT Agra16 October 2026AY 2014-158 pages
AI SummaryAllowed

What were the facts?

The assessee, Infra Developers, is in appeal against the order of the CIT(A), NFAC, Delhi, for Assessment Year 2014-15. The original assessment under Section 143(3) was completed on July 14, 2016, at Rs. 9,50,000/-. The assessment was later reopened under Section 148 on March 30, 2021, on the grounds that the assessee made cash payments exceeding Rs. 20,000/- in a day, totaling Rs. 20,19,400/-, in violation of Section 40A(3). The Assessing Officer (AO) disallowed this amount as the assessee failed to provide supporting documents like bills, vouchers, and bank statements. The CIT(A) dismissed the assessee's appeal. The assessee then filed an appeal before the ITAT, raising additional legal grounds challenging the reopening of assessment.

What did the Tribunal hold?

The Tribunal admitted the additional grounds of appeal, considering them legal in nature and having facts available on record, citing the Hon'ble Apex Court's decision in National Thermal Power Co. Ltd. v. CIT. The Tribunal found that the assessment was reopened after more than four years based on information available during the original assessment, without any mention of fresh evidence or failure by the assessee to disclose material facts. Following the Cuttack Bench's decision in Eminence Corporation Pvt. Ltd. vs. ITO, which held that reopening under Section 147/148 cannot be invoked when all materials were before the AO in the original assessment and the reopening is based on a change of opinion, the Tribunal held that the notice under Section 148 dated March 30, 2021, and the subsequent assessment order dated March 30, 2022, were invalid. Consequently, the Tribunal quashed both the notice and the assessment order. Additional Ground No. 2 was allowed, rendering other grounds academic.

What were the issues?

1. Whether the reopening of assessment under Section 147 is valid, considering it was done more than four years after the original assessment, without new material, and based on information already available during the original assessment proceedings, thereby constituting a change of opinion? (Section 147) Assessee's Contention: The assessee argued that the proviso to Section 147 is not applicable as the original assessment was completed more than four years prior, and the reopening was without new material, making the notice under Section 148 bad in law. They contended that all material facts were before the AO during the original assessment, and the disallowance under Section 40A(3) does not constitute income escaping assessment to attract Section 147. They relied on Earth Craft Limited vs. ITO and Eminence Corporation (P) Limited vs. ITO. Revenue's Contention: The learned Senior DR supported the orders of the authorities below.

Which sections of the Income-tax Act were involved?

Section 40A(3),Section 143(3),Section 147,Section 148,Section 250,Section 144B,Section 151(1),Section 2(24),Section 14

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AGRA (SMC

Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH

For Appellant: Shri Rajendra Sharma, Advocate &, Shri Manuj Sharma, Advocate
For Respondent: Shri Anil Kumar, Sr. DR
Hearing: 17.08.2026Pronounced: 16.10.2026

PER : BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER: This appeal is directed against the impugned order dated 26.03.2026 passed in appeal No. NFAC/2013-14/10151758 by the ld. Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the “CIT(A)] u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) for the A.Y. 2014-15, wherein ld. CIT(A) has dismissed assessee’s appeal.

2.

In this case, the original assessment u/s. 143(3) was completed on 14.07.2016, assessing the total income of the assessee at Rs. 9,50,000/- as against the returned income of Rs.8,46,040/-. Subsequently, the assessment was reopened vide notice u/s. 14

The order continues below.

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