SAGAR UTTAM MURHE,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 8, PUNE

PDF · subscribers
ITA 1615/PUN/2018Status: DisposedITAT Pune24 August 2022AY 2014-153 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessment order was invalid as it exceeded the scope of limited scrutiny without following due process. Consequently, the assessment order was quashed.

What were the facts?

The Assessing Officer (AO) initiated a limited scrutiny assessment focusing on 'interest income mismatch'. However, the final assessment order under Section 143(3) added an unexplained cash credit of Rs. 17,25,000/- under Section 68 without converting the assessment to complete scrutiny as per CBDT circulars.

What were the issues?

Whether an assessment order passed under Section 143(3) is invalid if it goes beyond the scope of limited scrutiny without proper conversion to complete scrutiny as per CBDT guidelines.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 68,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(3)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI S.S. GODARA & G.D. PADMAHSHALI

For Appellant: Shri Pramod Shingte, Shri Arvind Desai
Hearing: 17.08.2022Pronounced: 24.08.2022

BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND G.D. PADMAHSHALI, ACCOUNTANT MEMBER & 1329/PUN/2018 (Assessment Year: 2014-15) Shri Sagar Uttam Murhe DCIT, Circle -8 House No. 898 Pune Vs. At Post: Kuruli Village Tal: Khed, Distt Pune 410501 PAN –AQLPM2140E Appellant Respondent Appellant by: Shri Pramod Shingte Respondentby: Shri Arvind Desai Date of Hearing: 17.08.2022 Date of Pronouncement: 24.08.2022 O R D E R Per S.S. Godara, JM These assessee’s twin appeals for AY 2014-15 arise against the CIT(A) 6, Pune’s separate orders; both dated 20.06.2018, passed in case Nos. PN/CIT(A)-6/DCIT Cir-8/10762/2016-17 and PN/CIT(A)-6/DCIT Cir-8/ 10075/2017-18, involving proceedings under Sections 143(3) and 271(1)(c) of the Income Tax Act, 1961 (in short the Act), respectively.

Heard both the parties. Case file perused.

2.

We note at the outset in quantum appeal that the assessee has sought to raise his additional ground(s) inter alia pleading therein that the impugned assessment itself is not valid once the Assessing Officer has not converted it from a “limited” to “complete” one as per the CBDT Circular No. 20 of 2015. The Revenue raised vehement objections to admission of the assessee’s instant additional ground. The fact, however, remains that the foregoing issue is very much a legal one wherein all the relevant facts are already on record in assessee’s paper book running into 64 pages. This tribunal’s Special Bench’s decision All Cargo Global Logistics Ltd. Vs. DCIT (2012) 137 ITD 287 (Mum); after considering the hon’ble apex court’s landmark judgement in NTPC Ltd. vs. CIT 229 ITR 383 holds that we can very well entertain such a pure question of law in order to determine correct tax liability of an assessee provided all the relevant facts form part of the records. We make it clear that page 63 of the assessee’s paper book contains the assessee’s limited scrutiny notice dated 30.07.2016 indicating that the sole issue in his case as “interest income mismatch” whereas the corresponding Section 143(3) assessment dated 26.12.2016 added Section 68 unexplained cash credit of Rs.17,25,000/- and that too, without converting it into a “complete” scrutiny as prescribed in the CBDT circular dated 14.07.2016 baring No. 5/2016.

3.

Learned DR could also not place on record any material that the Assessing Officer had indeed undertaken all necessary steps as well as all approval(s) as prescribed in the foregoing twin CBDT circulars. Case law (2020) 120 taxmann.com 187 CIT vs. Padmavati (Mad) (HC) holds that such an assessment could not exceed the scope of the prescribed “limited” scrutiny except as per the due process of law. This is indeed coupled with various coordinate benches decisions reiterating the very legal proposition. Faced with this situation, we hold that the learned Assessing Officer’s impugned assessment herein is non- est in the eyes of law. The same stands quashed. The assessee succeeds in his quantum appeal .

4.

Same order to follow in assessee’s penalty appeal being consequential in nature.

5.

These assessee’s twin appeals are allowed in above terms. A copy of this common order be placed in the respective case files.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →