INCOME-TAX OFFICER, PALANPUR vs. SIDDHARTH SATISHBHAI JOSHI, GUJARAT
Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI T.R. SENTHIL KUMAR
PER DR. B.R.R. KUMAR, VICE-PRESIDENT :
This appeal has been filed by the Revenue against the order passed by the Ld. Commissioner of Income-tax (Appeals), National Faceless Appeal Centre
(NFAC), Delhi (hereinafter referred to as "CIT(A)" for short), dated 08.05.2024, under Section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2014-15. 2. The Revenue has raised the following grounds:-
“(a) The Ld. CIT(A) has erred in law and on facts in quashing the assessment order passed u/s 143(3) r.w.s. 147 r.w.s. 144B of IT Act on the basis of non- issuance of notice u/s 143(2) of the IT Act, without appreciating the facts that the assessee has not filed return of income within prescribed time limit in response to notice u/s 148 of the IT Act.
(b) The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.2,19,17,017/- made by AO on account of unexplained investment in land.”
Asst. Year : 2014-15
- 2–
The reasons recorded by the Assessing Officer for initiating proceedings u/s 147 of the Act are reproduced below: “……. 4. Basis of reason to believe:
As discussed above the assessee has disclosed only a meager income in the return and also made huge cash deposit in the bank as discussed above, I have reason to believe that income chargeable to tax has escaped assessment to the extent of on money and sales consideration paid i.e. Rs.2,19,17,017/-
5. As per above discussion, I have reason to believe that income chargeable to tax has escaped assessment for A.Y. 2014-15 and intend to reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to the notice subsequently in the course of the proceedings under this section.
6. In this case a return of income was filed for the year under consideration but no scrutiny assessment u/s 143(3) of the act was made and the return of income was only processed u/s 143(1) of the act. In view of the above, provisions of clause (b) of explanation 2 to section 147 are applicable to facts of this case and the assessment year under consideration is deemed to be a case where income chargeable to tax has escaped assessment.
7. In this case more than four years have lapsed from the end of assessment year under consideration. Hence necessary sanction to issue notice u/s 148
has been obtained separately from Principal Commissioner of Income tax as per provisions of section 151 of the Act.”
The Assessing Officer held that the return of income was processed under Section 143(1) of the Act, whereas the facts on record reveal that the return was processed under Section 143(3) of the Act. The ld. Counsel for the assessee also submitted that the assessment order dated 14.12.2016 had been passed under Section 143(3) of the Act, and the Ld. DR could not dispute this fact on record. Asst. Year : 2014-15 - 3–
Thus, it is evident from the record that the Assessing Officer had not applied his mind to the facts of the case, which renders the reassessment order void and ab initio. Accordingly, the reassessment order is hereby quashed.
5. In the result, the appeal of the Revenue is dismissed.
The order is dictated and pronounced in the open Court on 04.11.2025 (SIDDHARTHA NAUTIYAL)
VICE-PRESIDENT
Ahmedabad; Dated 04/11/2025
**btk
आदेश की ितिलिप अेिषत/Copy of the Order forwarded to :
अपीलाथ / The Appellant 2. थ / The Respondent. 3. संबंिधतआयकरआयु / Concerned CIT 4. आयकरआयु(अपील) / The CIT(A)- 5. िवभागीयितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad 6. गाड फाईल/ Guard file.
आदेशानुसार/ BY ORDER,उप/सहायक पंजीकार (Dy./Asstt.