M/S RAJASTHAN STATE ROAD DEVELOPMENT & CONSTRUCTION CORPORATION LTD.,SETU BHAWAN, JHALANA DOONGRI, JAIPUR vs. DCIT, CIRCLE-6, JAIPUR

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ITA 150/JPR/2023Status: DisposedITAT Jaipur28 June 2023AY 2010-11Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)14 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reopening of the assessment was bad in law as it was based on a change of opinion without any new material, and the issue was already examined in the original assessment. Therefore, the reopening notice was quashed.

What were the facts?

The assessee, a State Government undertaking, claimed deduction under Section 80-IA. The Assessing Officer (AO) reopened the assessment after four years, alleging non-apportionment of head office expenses. The CIT(A) partly allowed the appeal, reducing the disallowance.

What were the issues?

Whether the reopening of assessment beyond four years was valid without new material and in the absence of suppression of facts. Whether the CIT(A) correctly upheld the validity of the order passed by the AO under Section 147.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 80-IA

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Income Tax Appellate Tribunal, JAIPUR BENCHES,”A” JAIPUR

Before: SHRI SANDEEP GOSAIN, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 150/JP/2023

Hearing: 24/05/2023Pronounced: 28/06/2023
6.

Per contra, the ld. DR relied upon the order of the lower authorities and as regards the contention of the assessee that before the ld. CIT(A) the date of furnishing the submission was fixed on 22.02.2023 but the order has been passed on 20.02.2023, the ld. DR submitted let the assessee be given made.

7.

In the rejoinder the ld. AR of the assessee submitted that the assessee should be given justice before the bench as the material is already available on record and there is no new evidence or arguments to be placed on record and therefore, the assessee seek justice before the bench rather to send back before the ld. CIT(A).

8.

We have heard the rival contentions and perused the material placed on record and also gone through the judicial decision relied upon by both the parities to drive home to their contentions. The bench noted that the in the original assessment proceeding the issue related to the claim of the assessee u/s. 80IA has been verified and the assessee has placed on record all the details necessary to claim the said deduction vide point no. 5 of letter dated 02.10.2012 (APB-8 to13). Thus, in the original assessment proceedings the claim has been considered by the ld. AO. The bench also persuaded the reasons recorded for reopening of the case of the assessee (APB-20) wherein while re-opening the case no new material placed on recorded and the reasons so recorded shows that the same has been re- noted that to support the contentions so raised for re-opening of the case the ld. AR of the assessee heavy relied upon the decision of the apex court in the case of ACIT Vs. CEAT Ltd. 449 ITR 171(SC) wherein the apex court has held that “It is not in dispute that the assessment was sought to be reopened beyond four years. Therefore, all the conditions u/s. 148 of the income tax act for reopening the assessment beyond four years are required to be satisfied. Having gone through the reasons recorded for reopening, we are of the opinion that the conditions precedent for reopening of the assessment beyond four years or not satisfied. The assessment was on change of opinion. There are no allegations of suppression of material facts. Under the circumstances, no error has been committed by the High Court in setting aside the reopening notice under section 148 of the income tax act. We are in complete agreement with the view taken by the High Court. The special leave petition stands dismissed.”

Since, the fact of that case as decided by the apex court with that of the case on hand wherein the issue has already been examined by the ld. AO in the original assessment proceeding and from the reasons so recorded there is no allegation of suppression of material facts by the assessee and while reopening the assessment there is no new material placed on record.

Considering these facts, the reopening of the case is bad and illegal and the same is quashed, consequently the ground no. 1 raised by the assessee is allowed. As we have decided the appeal of the assessee on technical ground, the ground no. 2 being on merits become educative in be decided.

In the result, appeal of the assessee is allowed.

Order pronounced in the open court on 28/06/2023. Sd/- Sd/- ¼ lanhi xkslkbZ ½ ¼ jkBkSM deys’k t;arHkkbZ ½ (Sandeep Gosain) (Rathod Kamlesh Jayantbhai) U;kf;d lnL;@Judicial Member ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 28/06/2023 *Ganesh Kumar आदेश की प्रतिलिपि अग्रेf’ात@ब्वचल वf जीम वतकमत वितूंतकमक जवरू 1. The Appellant- M/s Rajasthan State Road Development & Construction Corporation Ltd. izR;FkhZ@ The Respondent- DCIT, Circle-06, Jaipur 2. 3. vk;dj vk;qDr@ The ld CIT 4. vk;dj vk;qDr¼vihy½@The ld CIT(A) 5. विभागीय प्रतिनिधि] आयकर अपीलीय अधिकरण] जयपुर@क्त्ए प्ज्Aज्ए Jंपचनत xkMZ QkbZy@ Guard File (ITA No. 150/JP/2023) 6. vkns'kkuqlkj@ By order,

सहायक पंजीकार@Aेेज. त्महपेजतंत

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