M/S. LEO TRANSPORT,CHENNAI vs. ACIT, CHENNAI

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -5, Chennai, dated 28.07.2016 and pertains to assessment year 2007-08.

There was a delay of 16 days in filing this appeal by the assessee. The assessee has filed a petition for condonation of delay. We have heard the Ld. representative for the assessee and the Ld. D.R. We find that there was sufficient cause for not filing the appeal before the stipulated time. Therefore, we condone the delay and admit the appeal.

Sh. T. Banusekar, the Ld. representative for the assessee, submitted that the Assessing Officer reopened the assessment by issuing notice under Section 148 of the Income-tax Act, 1961 (in short 'the Act') on 25.03.2014, which is beyond the period of four years. According to the Ld. representative, it is not the case of the Revenue that there was any negligence on the part of the assessee in furnishing material facts. Referring to Section 147 of the Act, the Ld. representative submitted that the Assessing Officer cannot reopen the assessment after expiry of four years. The Ld. representative submitted that the original assessment was completed under Section 143(3) of the Act by an order dated 18.12.2009. Subsequently, the Assessing Officer issued notice on 25.03.2014 without any material. The issue was elaborately considered by the Assessing Officer in the original assessment order dated 18.12.2009. Therefore, according to the Ld. representative, the Assessing Officer reopened the assessment due to change of opinion. Hence, the consequential order passed by the Assessing Officer cannot stand in the eye of law.

We heard Shri Hari Govind, the Ld. Departmental Representative also. Admittedly, the original assessment was completed on 18.12.2009 by an order under Section 143(3) of the Act. Subsequently, the Assessing Officer issued notice under Section 148 of the Act on 25.03.2014. Therefore, the reopening of assessment is beyond four years. It is not the case of the Revenue that any new material was brought on record. The issue of TDS was elaborately discussed by the Assessing Officer in the original assessment order dated 18.12.2009. Therefore, it is a clear case of change of opinion. Moreover, the notice under Section 148 of the Act was issued beyond the period of four years. Therefore, this Tribunal is of the considered opinion that in the absence of any negligence on the part of the assessee in furnishing required material, the completed assessment cannot be reopened.

In the result, the appeal filed by the assessee is allowed.