PRINT-FAB (INDIA) PVT. LTD.,NEW DELHI vs. ITO, NEW DELHI

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ITA 5901/DEL/2013Status: DisposedITAT Delhi16 March 2016AY 2004-053 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal admitted the additional ground challenging the reassessment initiation as it was a legal issue going to the root of the matter. However, it remanded the case back to the CIT(A) to decide this issue first.

What were the facts?

The assessee filed an appeal against the CIT(A)'s order and sought to raise an additional ground challenging the initiation of reassessment proceedings under Section 147/148. The Revenue opposed the admission of this ground as it was not raised before the lower appellate authority.

What were the issues?

Whether an additional ground challenging the initiation of reassessment proceedings under Section 147/148 can be admitted for the first time before the Tribunal. Whether the reassessment proceedings were validly initiated.

Which sections of the Income-tax Act were involved?

Section 147,Section 148

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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-II’ : NEW DELHI

Before: SHRI A.T. VARKEY & SHRI PRASHANT MAHARISHI

For Appellant: Shri Satyen Sethi, Advocate

PER A.T. VARKEY, JUDICIAL MEMBER :

1.

This is an appeal filed by the assessee against the order of the CIT (Appeals)- XVII, New Delhi dated 11.09.2013 for the assessment year 2004-05.

2.

At the outset, the ld. AR pointed out that the assessee has filed an application under Rule 11 of the Income Tax Appellate Tribunal Rules, 1963 for admission of the additional ground challenging the initiation of reopening of assessment u/s 147/148 of the Income-tax Act, 1961 (hereinafter ‘the Act’).

3.

On the other hand, the ld. DR opposed the admission of the additional ground because it was not raised before the CIT (A). So, according to him, the additional ground should not be admitted.

4.

We have heard both the parties and perused the records. The assessee wants to admit the additional ground regarding its challenge in respect of initiation of reopening itself done by the AO u/s 147/148 of the Act. This additional ground, we note, is a legal issue which goes to the root of the matter, which is in fact challenging the usurpation of jurisdiction by the AO to reopen the assessment itself, so we are inclined to admit it and for doing so, we rely on the decision of the Hon’ble Supreme Court in NTPC Limited vs. CIT – 229 ITR 383 (SC) wherein it has been held that legal issues can be raised for the first time before the Tribunal. So, we admit the additional ground in respect to initiation of reopening of assessment u/s 147/148 of the Act. However, we are of the opinion that the issue raised before us needs to be adjudicated first by the ld. CIT (A), so we admit the additional ground on the legal issue of reopening itself by the AO and set aside the impugned order and remand the matter back to the file of ld. CIT (A) to decide this issue.

5.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in open court on this 16th day of March, 2016.

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