BINOD AUTOMOBILES,ANGUL vs. INCOME TAX OFFICER,ANGUL WARD, ANGUL, ANGUL

(नििाारण वर्ा / Assessment Year : 2013-2014) Binod Automobiles, Vs ITO, Angul Ward, Angul At- NH 55 Kandsar, NALCO Nagar Dist – Angul-759145 PAN No. :AALFB 0713 C (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. नििााररती की ओर से /Assessee by : Shri S.K.Sarangi, AR राजस्व की ओर से /Revenue by : Shri Ashim Kumar Chakraborty, CIT-DR सुनवाई की तारीख / Date of Hearing : 02/12/2025 घोषणा की तारीख/Date of Pronouncement : 02/12/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 18.09.2025 for the assessment year 2013-2014.

3. It was submission that the reason recorded was identical to the survey report of the DDIT(Inv.)) and there was no application of mind by the AO. It was submission that in view of the decision of the Hon’ble Jurisdictional High Court, Orissa in the case of Sri Laxmi Narayan Agency, reported in [2023] 450 ITR 650(Orissa), the reasons for reopening an assessment being merely repeated language of DDIT’s report without any independent application of mind, the reopening is bad in law. The Hon’ble Jurisdictional High Court in paras 9 to 11 of its order has categorically held as follows:- 9. Further, it is seen that the reasons for reopening of the assessment merely repeats the language of the report of the DDIT (Inv.) without any independent application of mind by the AO. In Sabh Infrastructure Ltd. v. Asst. Commissioner of Income Tax [2017] 398 ITR 198 (Delhi), the Delhi High Court in similar circumstances set aside the re-assessment order. In paragraph-15 of the said decision, it has been observed that assessment proceedings, especially those under Section 143 (3) of the Act "have to be accorded sanctity and any reopening of the same has to be on a strong and sound legal basis." It was further emphasized that "there have to be reasons to believe and not merely reasons to suspect that income has escaped assessment." The Delhi High Court also set out the guidelines for reopening of the assessment as under: "(i) while communicating the reasons for reopening the assessment, the copy of the standard form used by the AO for obtaining the approval of the Superior Officer should itself be provided to the Assessee. This would contain the comment or endorsement of the Superior Officer with his name, designation and date. In other words, merely stating the reasons in a letter addressed by the AO to the Assessee is to be avoided; (ii) the reasons to believe ought to spell out all the reasons and grounds available with the AO for re- opening the assessment - especially in those cases where the first proviso to Section 147 is attracted. The reasons to believe ought to also paraphrase any investigation report which may form the basis of the reasons and any enquiry conducted by the AO on the same and if so, the conclusions thereof; (iii) where the reasons make a reference to another document, whether as a letter or report, such document and/ or relevant portions of such report should be enclosed along with the reasons; (iv) the exercise of considering the Assessee's objections to the reopening of assessment is not a mechanical ritual. It is a quasi- judicial function. The order disposing of the objections should deal with each objection and give proper reasons for the conclusion. No attempt should be made to add to the reasons for reopening of the assessment beyond what has already been disclosed."