2015 (12) TMI 1817 - AT - Income Tax

Reopening of assessment u/s 147 - assessee has not filed any return of income for assessment year under appeal - HELD THAT - Assessee filed return of income in assessment year 1999-2000 on 08.03.2000. Copy of the acknowledgement of filing of the return is filed at page 28 of the Paper Book. Since the Assessing Officer recorded incorrect and non-existing reasons for re-opening of the assessment therefore re-opening of the assessment would not be justified in the matter. We rely upon decision of Hon ble Punjab Haryana High Court in the case of Atlas Cycle Industries 1989 (4) TMI 48 - PUNJAB AND HARYANA HIGH COURT - Decided in favour of assessee

Summary

Issues:
Challenge against cancellation of re-assessment order under section 148 of the Income Tax Act for assessment year 1999-2000.

Analysis:
The appeal by the revenue challenged the cancellation of the re-assessment order under section 148 of the Income Tax Act for the assessment year 1999-2000. The original order was passed by the CIT(Appeals), which was then taken to the ITAT Chandigarh Bench for further consideration. The Tribunal remitted the issue back to the CIT(Appeals) to decide the preliminary issue of notice under section 148 and service of notice under section 143(2) of the Income Tax Act. The Tribunal's findings indicated that the issue raised in the appeal was similar to a previous case and directed the CIT(Appeals) to decide in line with their directions.

In the subsequent proceedings, the CIT(Appeals) considered the facts and reasons for the re-opening of the assessment. It was observed that the notice under section 148 was issued on the presumption that the assessee had not filed their return of income, which was factually incorrect. The reasons for re-opening the assessment were found to be without basis, as the return of income for the relevant assessment year had indeed been filed by the assessee. Following a similar judgment by the ITAT Chandigarh Bench in a previous case, the re-assessment order was canceled, and the appeal of the assessee was allowed.

During the arguments, the Assessing Officer contended that the investments made by the assessee could be examined in the proceedings under section 148 of the Income Tax Act. However, the counsel for the assessee referred to relevant documents and previous judgments to support their case. The Tribunal noted that the reasons recorded for re-opening the assessment were incorrect, and the re-opening of the assessment was not justified. Citing a decision of the Punjab & Haryana High Court and previous judgments, the Tribunal upheld the order of the CIT(Appeals) in favor of the assessee.

In conclusion, the Tribunal found no merit in the appeal by the revenue and dismissed it. The order of the CIT(Appeals) canceling the re-assessment order under section 148 for the assessment year 1999-2000 was upheld.