DIPTI MEHTA ,KOLKATA vs. ITO, WARD - 43(2), , KOLKATA

I come to former issue of validity of re-opening in question. This assessee had filed her return for the impugned assessment year on 28.07.2009 declaring taxable income of ₹3,99,390/-. The same stood summarily processed. The Assessing Officer thereafter formed reasons to believe as per the investigation wing’s report that the assessee had taken a loss entry from M/s Mahasagar Group. This alleged loss entry involved an amount of ₹2,71,500/-. The Assessing Officer issued sec. 148 notice dated 03.02.2014. The assessee in turn requested to treat her original return as the one filed in furtherance to sec. 148 proceedings. The Assessing Officer thereafter completed re- assessment on 28.02.2015 disallowing the sum in question of ₹28,891/- u/s 14A r.w.s. Rule 8D(2) in the nature of direct and administrative expenditure to the tune of ITA No.2031/Kol/2018 A.Y. 2009-10 Dipti Mehta Vs. ITO Wd-45(2), Kol. Page 2 ₹2,048/- and ₹26,843/-; respectively in relation to exempt income of ₹29,911/-. The CIT(A) has declined assessee’s both grounds challenging validity of re-opening as well as correctness of above stated disallowance(s) on merits.

I have given my thoughtful consideration to rival submissions. The assessee’s former substantive ground challenges validity of re-opening. It transpires during the course of hearing that the Assessing Officer had re-opened the assessee’s case recording that she had availed an accommodation entry of loss amounting to ₹2,71,500- whereas he disallowed the amount in question of ₹28,891/- only during the course of re-assessment (supra). Hon'ble Mumbai high court’s decision in CIT vs. Jet (Chhattisgarh) hold that such a re-assessments not making any addition qua the specified reasons of re-opening but on other issues are not sustainable. I therefore quash the impugned re-assessment for this sole reason.

This assessee’s appeal is allowed. Order pronounced in open court on 30/01/2019 (S.S. Godara) Judicial Member Kolkata, *Dkp/Sr.PS "दनांकः- 30/01/2019 कोलकाता आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:- 1. अपीलाथ"/Appellant-Dipti Mehta, 161/1 M.G. Road, Ground Fl, Kolkaata-007

""यथ"/Respondent-ITO Wrd-45(2), 3, Govt. Place, Kolkata-101 3. संबं"धत आयकर आयु%त / Concerned CIT 4. आयकर आयु%त- अपील / CIT (A) 5. &वभागीय ")त)न"ध, आयकर अपील"य अ"धकरण कोलकाता / DR, ITAT, Kolkata 6. गाड+ फाइल / Guard file. By order/आदेश से, // उप/सहायक पंजीकार आयकर अपील"य अ"धकरण, कोलकाता ।