M/S MAJESTIC SALES PROMOTION PVT. LTD. ,KOLKATA vs. DCIT, CIR.-8(1), KOLKATA

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ITA 48/KOL/2024Status: DisposedITAT Kolkata28 March 2025AY 2011-12Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI SONJOY SARMA (Judicial Member)4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the reassessment proceedings were initiated after four years, they must satisfy the first proviso to Section 147. As the reasons recorded u/s 148(2) did not mention any failure by the assessee to disclose material facts, the reopening was invalid and illegal, following the Supreme Court's decision in ACIT vs. CEAT Ltd.

What were the facts?

The assessee's assessment was initially framed u/s 143(3). Subsequently, the case was reopened u/s 147 by issuing notice u/s 148 on 22.03.2018 for AY 2011-12, i.e., after more than four years from the end of the relevant assessment year, based on information about accommodation entries and unexplained cash credits of ₹35.00 lacs.

What were the issues?

Whether reassessment proceedings initiated beyond four years from the end of the assessment year are valid if the reasons recorded do not explicitly state the assessee's failure to disclose material facts as required by the first proviso to Section 147.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 148(2)

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Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR, AM & SHRI SONJOY SARMA, JM

For Appellant: Shri Abhishak Bansal, AR
For Respondent: Shri B. Satyanarayana Raju, DR
Hearing: 24.02.2025Pronounced: 28.03.2025
1.

These are appeals preferred by the assessee against the orders of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 11.10.2023 & 12.10.2023 for the AYs 2010-11 & 2011-12 respectively.

2.

At the time of hearing, the assessee only pressed ground no.4, which is extracted as under:-

“4. For that the re-assessment proceedings initiated after 4 years from the end of assessment year without there being failure on the part of the assessee to disclose fully and truly any material facts is without jurisdiction being barred by limitation.” 03. The facts in brief are that the assessee filed the return of income on 13.09.2011, declaring total income at ₹12,83,718/-. The case of the

4.

The said issue was raised before the ld. CIT (A) by way of raising ground no. 1 and 2 in an appeal , however, there was no specific adjudication on this issue by the ld. Commissioner of Income-tax (Appeals).

47/KOL/2024 for A.Y. 2010-12

7.

In the result, the appeals of the assessee are allowed.

Order pronounced in the open court on 28.03.2025.

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