ITO 6(1)(3), MUMBAI vs. ARISTO REALTY DEVELOPERS LTD, MUMBAI

ITA 3638/MUM/2014Status: DisposedITAT Mumbai30 August 2019AY 2005-0623 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, quashing the reassessment proceedings. It found that the reassessment was initiated beyond four years without demonstrating any failure on the part of the assessee to disclose truly and fully material facts. The Tribunal also noted that the reassessment was based on a change of opinion, which is not permissible.

What were the facts?

The Assessing Officer (AO) reopened the assessment for AY 2005-06 beyond four years, alleging failure to disclose material particulars. The AO added a significant amount to the book profit under section 115JB for a loan waiver treated as general reserve. The assessee had disclosed details of loans and their treatment during the original assessment.

What were the issues?

Whether the reassessment proceedings initiated beyond four years were valid, and if there was a failure on the part of the assessee to disclose material facts. Whether the reassessment was based on a valid reason or a mere change of opinion.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(3),Section 115JB

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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI

For Appellant: Ms. Anadi Verma, DR
Hearing: 31.07.2019Pronounced: 30.08.2019

महावीर ससुंह, न्याययक सदस्य/ PER MAHAVIR SINGH, JM:

These appeal of Revenue is arising out of the order of the Commissioner of Income Tax (Appeals)]-14, Mumbai [in short CIT(A)], in appeal No. CIT(A)-14/ITO-6(1)(3)/IT-21/2013-14 vide dated 13.03.2014. The Assessment was framed by the Income Tax Officer, Ward-6(1)(3) Mumba

The order continues below.

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