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Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: SH. N. K. BILLAIYA & SH. YOGESH KUMAR US
ORDER PER N. K. BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the CIT(A)-10, New Delhi dated 16.08.2013 pertaining to A.Y. 2007-08.
The grievance of the assessee read as under :-
That on the facts and the circumstances of the case and in law, the order passed by the CIT(A) is bad in law.
2. That on the facts and in the circumstances of the case, the CIT(A) erred in holding that the notice u/s. 148 of the Act by the ld. AO and consequential assessment proceedings are valid. 3. That on the facts and in circumstances of the case and in law, the Ld. CIT(A) erred in holding that advance amounting to Rs.59,46,869/- written off by the assessee is not allowable as a deduction from business income.
Representatives of both the sides were heard at length. Case records carefully perused and the relevant documentary evidences brought on record duly considered alongwith judicial decisions relied upon.
Briefly stated the facts of the case are that the original assessment was completed u/s. 143 (3) of the Act vide order dated 23.11.2010. The completed assessment was reopened by citing the following reasons :-
We have given a thoughtful consideration to the aforementioned reasons for reopening the assessment. We find that in the reasons itself the AO has mentioned “perusal of record reveals” which means that no new tangible material was brought on record and the AO has used what was already there in his records. This is against the ratio laid down by the Hon’ble Supreme Court in the case of Kelvinator of India Limited 320 ITR 561. As no new tangible material has been brought on record the reopening can only be just a change of opinion which is not permissible for reopening the completed assessment.
The assumption of jurisdiction is held to be bad in law and the resulted assessment order deserves to be quashed.
Since we have quashed the assessment order we do not find it necessary to dwell into the merits of the case.
In the result, the appeal of the assessee is allowed.