ACIT CENT. CIR -5(4), MUMBAI vs. SHRI NITAN CHHATWAL, MUMBAI

ITA 2243/MUM/2021Status: DisposedITAT Mumbai02 September 2022AY 2013-1424 pages
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What did the Tribunal hold?

The Tribunal held that the reopening of assessment under section 148 was void ab initio because the AO initiated it when the time limit for issuing a notice under section 143(2) had not expired. Consequently, the assessment order for AY 2015-16 was quashed.

What were the facts?

The Assessing Officer (AO) initiated assessment proceedings under section 153A after a search operation. The AO made additions, treating capital gains as unexplained cash credit, based on investigation reports about penny stocks. The assessee argued that no incriminating material was found during the search for the unabated assessment year.

What were the issues?

Whether additions made under section 153A are valid without incriminating material found during search for an unabated assessment year, and whether reopening under section 148 is valid when time for section 143(2) notice is available.

Which sections of the Income-tax Act were involved?

Section 153A,Section 68,Section 143(3),Section 148,Section 143(2)

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Income Tax Appellate Tribunal, “B” Bench, Mumbai

For Appellant: Shri Mani Jain, CA
For Respondent: Dr. Mahesh Akhade
Hearing: 12.07.2022Pronounced: 02.09.2022

Heard together (4 matters)

I.T.A. No. 1571/Mum/2021
C.O. No. 42/Mum/2021
I.T.A. No. 2243/Mum/2021
I.T.A. No. 2244/Mum/2021

Read from the judgment's own cause title. This page is filed under one of them.

Per B.R.Baskaran (AM) :-

The revenue has filed appeals for AY 2013-14 and 2015-16. The assessee has filed appeal for AY 2013-14 and cross objection for AY 2015-16. All these appeals are directed against the orders passed by Ld CIT(A)-53, Mumbai. All these appeals were heard together and are being disposed of by this common order, for the sake of convenience.

2.

We shall first take up the appeals filed

The order continues below.

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