2019 (8) TMI 1537 - AT - Income Tax

Reopening of assessment u/s 147 - maintainability of the re-assessment proceeding - HELD THAT - It appears from the records before us that the grounds taken by the assessee regarding the validity of issuance of notice u/s 148 and confirming of re-assessment order passed u/s 143(3) r.w.s. 147 has really not been adjudicated by the Learned Tribunal which is an error apparent on the face of the record. Hence we recall the order. The Registry is directed to keep the matter on board on 22.08.2019. Since the Learned Advocate is present before us at the time of hearing of this Misc. Application service of notice upon the assessee is dispensed with.

Summary

Issues:

1. Recalling of the order dated 29.03.2019 passed by the Hon'ble Tribunal regarding the dismissal of the assessee's appeal.
2. Adjudication on the validity of the notice u/s 148 of the Income Tax Act, 1961 and the re-assessment order passed u/s 143(3) r.w.s. 147 of the Act.

Issue 1: Recalling of the Order:
The assessee filed a Misc. Application seeking the recalling of the order dated 29.03.2019 passed by the Hon'ble Tribunal, where the assessee's appeal (ITA No.1410/Ahd/2015 for A.Y. 2005-06) was dismissed on merit. The assessee contended that the grounds related to the validity of the notice u/s 148 and the re-assessment order were not adjudicated on merit. The Tribunal found that these grounds were not properly addressed, constituting an error on the face of the record. Consequently, the Tribunal decided to recall the order and scheduled a new hearing on 22.08.2019 without the need for notice to the assessee due to the presence of the Learned Advocate during the Misc. Application hearing.

Issue 2: Adjudication on Validity of Notice and Re-assessment Order:
The Tribunal noted that the grounds concerning the validity of the notice u/s 148 of the Act and the confirmation of the re-assessment order passed u/s 143(3) r.w.s. 147 of the Act were not adequately addressed in the previous order. As a result, the Tribunal concluded that there was an apparent error in not adjudicating on these critical issues. Therefore, the Tribunal decided to recall the order to properly consider and hear the matter afresh regarding the maintainability of the re-assessment proceedings. The Misc. Application filed by the assessee was allowed, and the matter was scheduled for a new hearing.

This comprehensive analysis of the legal judgment highlights the issues involved, the Tribunal's decision to recall the order, and the necessity for proper adjudication on the validity of the notice and re-assessment order.