Best Bull Stock Trading Pvt. Ltd. Vs ACIT (ITAT Delhi)
CIT(A) Has No Power to Direct Reopening u/s 147 After Deleting 153A Additions: ITAT Strikes Down Reassessment Directions
The Delhi Bench of the ITAT, in Best Bull Stock Trading Pvt. Ltd. v. ACIT (AYs 2015-16 & 2016-17), held that the Commissioner (Appeals) has no jurisdiction to direct the Assessing Officer to initiate reassessment proceedings under sections 147/148 after deleting additions made under section 153A for want of incriminating material.
In the present case, the CIT(A) had deleted the additions made in search assessments on the ground that no incriminating material was found, but simultaneously issued directions under section 150(1) to the AO to initiate reassessment proceedings. The Tribunal held that such directions are ultra vires the powers of the appellate authority. Relying on settled law including ITO v. Murlidhar Bhagwan Das (SC), K.M. Sharma v. ITO (SC) and recent Tribunal decisions following Abhisar Buildwell (SC), the ITAT clarified that section 150 does not enlarge the powers of the CIT(A) and cannot override the statutory limitations or jurisdictional requirements of section 147.
The Tribunal emphasized that reopening of assessment is exclusively within the domain of the Assessing Officer, subject to independent “reason to believe” and satisfaction of limitation provisions, and cannot be triggered by appellate directions. Once the CIT(A) deletes an addition, his jurisdiction ends there. Any attempt to compel or suggest reassessment amounts to indirectly permitting what is impermissible directly. Accordingly, the directions of the CIT(A) to reopen the assessments were quashed and the assessee’s appeals were allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
