2018 (2) TMI 165 - AT - Income Tax

Reopening of assessment - reasons to believe - Held that - We are of the opinion that the order u/s.143(3) dated 23.12.2011 and order u/s.143(3)/147 dated 28.8.2014 are two separate appellate orders and the submission of A.R. that the order u/s.143(3) merged with u/s.143(3)/147 cannot be accepted. In the present appeal, the assessee has not raised grounds based on the order u/s.143(3)/147 of the Act and further not challenged the additions in the order u/s.143(3)/147, and we are of the opinion that appeal is not maintainable accordingly, we dismiss the appeal filed by the assessee.

Summary

Issues involved:
Appeal against CIT(A) order for assessment year 2009-2010.

Analysis:
1. The assessee, engaged in real estate business, filed a return of income for the assessment year 2009-2010 showing a total income of ?7,23,379. The Assessing Officer completed the assessment under section 143(3) of the Act, making various additions, resulting in a total assessed income of ?2,81,29,100. Subsequently, a notice was issued under section 148 of the Act, and a further assessment was made under section 143(3)/147, adding ?3,92,382 and assessing the income at ?2,85,21,483.

2. The assessee appealed to the CIT(A) against the order under section 143(3) of the Act, arguing that the appeal was infructuous as an appeal had already been filed against the order under section 143(3)/147. The CIT(A) dismissed the appeal under section 143(3) as infructuous, stating that the earlier order under section 143(3) no longer existed in the eyes of the law after the order under section 143(3)/147 was passed. The CIT(A) allowed the appeal under section 143(3)/147 in part.

3. The assessee, dissatisfied with the CIT(A)'s order, appealed to the ITAT. The ITAT noted that the orders under section 143(3) and under section 143(3)/147 were separate appellate orders. The ITAT found that the assessee did not challenge the additions made in the order under section 143(3)/147 and had not raised grounds based on that order. Consequently, the ITAT held that the appeal was not maintainable and dismissed the assessee's appeal.

4. As the appeal filed by the assessee was dismissed, the ITAT ruled that the appeal filed by the revenue was also not adjudicated and, therefore, dismissed it as well. Ultimately, both the assessee's and revenue's appeals were dismissed by the ITAT.

In conclusion, the ITAT dismissed the appeals filed by both the assessee and the revenue, as the assessee's appeal was deemed not maintainable due to not challenging the additions made in the order under section 143(3)/147.