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Facts
The Revenue filed appeals challenging the order of the CIT(A) which had allowed the assessee's appeal by holding the reassessment invalid. The Revenue contended that the reassessment was based on tangible material from a revenue audit objection, which indicated an allowance of bad debts that was not permissible. The assessee argued that there was no new tangible material and no failure to disclose facts, especially as the notice was issued after the four-year period.
Held
The Tribunal held that the reopening of assessment was based on materials already on record and not on new tangible material. It was also noted that the reassessment notice was issued after the expiry of four years, and the Revenue failed to demonstrate any failure on the part of the assessee to disclose full and true material facts. The Tribunal found no infirmity in the CIT(A)'s order and thus dismissed the Revenue's appeal.
Key Issues
Whether the reassessment proceedings initiated after a lapse of four years were valid, given the absence of new tangible material and failure to disclose material facts by the assessee.
Sections Cited
147, 148, 115JB, 143(3)
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Income Tax Appellate Tribunal, “B” BENCH, MUMBAI
Before: SHRI OM PRAKASH KANT, AM
observation, we do not find any infirmity in the order of the Ld. CIT(A) and therefore deem it fit to dismiss the grounds of appeal raised by the Revenue and hereby quash the impugned notice as well as the impugned order. As we have already quashed the impugned assessment order, the grounds raised by the assessee in its cross objection challenging the merits of the case are also dismissed. Accordingly, the appeal filed by the Revenue and the Cross Objection filed by the assessee are dismissed.
The finding given in this appeal and cross objection i.e. & CO No.259/M/2025 will apply mutatis mutandis to other appeal and cross objection i.e. & CO No.258/M/2025 as well and hence the same are also hereby dismissed.
In the result, both the appeals filed by the Revenue and both the cross objections filed by the assessee are dismissed.
Order pronounced in the open court on 12.02.2026