HI-TECH BOARD PRIVATE LIMITED,NAGPUR vs. DCIT/ACIT CIRCLE-4, NAGPUR

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ITA 611/NAG/2024Status: DisposedITAT Nagpur25 June 2025AY 2013-14Bench: SHRI NARENDER KUMAR CHOUDHRY (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reopening proceedings under section 147 of the Act, initiated by a notice dated 31/03/2021 and consequent assessment order dated 25/03/2022, were liable to be quashed as there was no failure on the part of the assessee to disclose fully and truly all material facts.

What were the facts?

The assessee's case for AY 2013-14 was reopened after 4 years based on information already available with the AO during the original assessment under section 143(3). The original assessment order was passed on 14/03/2016, assessing a loss of ₹1,34,02,796/-.

What were the issues?

Whether the reopening of assessment under section 147 of the Income Tax Act, 1961, was valid when the basis for reopening was already available during the original assessment.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR

Before: SHRI NARENDER KUMAR CHOUDHRY

Hearing: 25.06.2025Pronounced: 25.06.2025

This appeal has been preferred by the assessee against the order dated 14/10/2024 impugned herein passed by the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [in short, “Ld.Commissioner”] u/sec. 250 of the Income Tax Act, 1961 (for short, “the Act”) for the Assessment Year (for short, “AY”) 2013-14.

2.

Admittedly, the case of the assessee was reopened after 04 years from the end of the relevant assessment year and on the 2 ITA.No. 611/NAG/2024 basis of schedule of fixed assets of balance sheet which was already available before the AO while considering the return filed by the assessee and making the assessment u/sec. 143(3) of the Act on dated 14/03/2016, which resulted into assessing the loss of ` 1,34,02,796/-. There is nothing appearing in the reasons recorded as to what material the assessee failed to disclose fully and truly which has escaped assessment and thus the reopening proceedings is hit by 1st proviso to sec. 147 of the Act.

3.

Thus, considering the aforesaid peculiar facts and circumstances of the case, this Court is of the considered view, the notice issued on dated 31/03/2021 for reopening the case u/sec. 147 of the Act along with assessment order dated 25/03/2022 passed in consequent to the 148 notice, is liable to be quashed. Thus, the same is quashed.

4.

In the result, appeal of the Assessee is allowed.

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