ITO SENDHWA, SENDHWA vs. MS/S. NORTH AVENUE INFRASTRUCTURE (P) LTD., BARWANI

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ITA 786/IND/2019Status: DisposedITAT Indore19 September 2022AY 2012-133 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the notice under Section 148 of the Act was issued beyond the limitation period prescribed by the statute. Therefore, the reassessment proceedings were not sustainable in law.

What were the facts?

The Revenue appealed against an order of the CIT(A) concerning assessment year 2012-13. The assessee had challenged the maintainability of reassessment proceedings initiated under Section 148 of the Income Tax Act.

What were the issues?

The primary issue was the validity of reassessment proceedings initiated by issuing a notice under Section 148 of the Income Tax Act beyond the statutory limitation period.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: Ms. MADHUMITA ROY & SHRI BHAGIRATH MAL BIYANI

Hearing: 15.09.2022

Heard together (2 matters)

I.T.A. No.786/Ind/2019
CO No. 14/Ind/2020

Read from the judgment's own cause title. This page is filed under one of them.

The instant appeal filed by the Revenue and the Cross Objection filed by the assessee are directed against the order dated 31.05.2019 passed by the Commissioner of Income Tax (Appeals)-II, Indore (in short ‘CIT(A)’), arising out of the order dated 30.11.2018 passed by the Income Tax Officer, Sendhwa a/w. CO No. 14/Ind/2020 (ITO vs. M/s. North Avenue Infrastructure P. Ltd.) Asst.Year.– 2012-13 - 2 - under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2012-13.

2.

Since, the assessee has challenged the maintainability of the proceedings initiated under S.148 of the Act, we would like to address the same at the very threshold.

3.

The original assessment was made by the Ld.AO on 30.11.2018 for A.Y. 2012-13. The notice under Section 148 of the Act was issued on 12.12.2017 after approval granted by the Pr.CIT -2, Indore vide letter dated 16.08.2017 as it is reflecting from the order passed by the Ld.AO. Since, the notice under Section 148 of the Act is supposed to be issued by 31st March, 2017, the issuance of notice under Section 148 of the Act is admittedly beyond limitation period prescribed under the statute. Hence, the reopening is not sustainable in the eye of law as the case made out by the assessee.

4.

The Ld.DR also has not been able to controvert such submissions made by the Ld.AR at the time of hearing of the matter.

5.

Thus, having heard the learned counsel appearing for the parties and having regard to the facts and circumstances of the case, we find that the very basis of the re-assessment, assessment being notice under Section 148 of the Act has been issued beyond limitation prescribed under the law, the same is admittedly not sustainable and therefore, the entire proceeding is liable to be quashed. We, therefore, quash the proceedings initiated under Section a/w. CO No. 14/Ind/2020 (ITO vs. M/s. North Avenue Infrastructure P. Ltd.) Asst.Year.– 2012-13 - 3 - 147/148 of the Act. The departmental appeal, therefore, become infructuous and the Cross Objection filed by the assessee is allowed.

6.

In the result, Revenue’s appeal is dismissed as infructuous and assessee’s cross objection is allowed.

This Order pronounced in Open Court on 19/09/2022

Sd/- Sd/- (BHAGIRATH MAL BIYANI) (MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore; Dated 19/09/2022 S. K. Sinha, Sr. PS TRUE COPY आदेश क� �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Indore 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,

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