Rakhi Mondal Vs Assessment Unit (ITAT Kolkata)
Reopening Beyond 3 Years Quashed – Conditions u/s 149(1)(b) Not Satisfied – Adhoc Profit Estimation Without Rejecting Books Invalid – ITAT Kolkata
ITAT Kolkata quashed reassessment holding that notice u/s 148 issued beyond 3 years was invalid as mandatory conditions of Sec 149(1)(b) were not fulfilled and AO failed to show escaped income represented as specified asset/entry exceeding ₹50 lakh. Tribunal further held that CIT(A)’s estimation of 15% profit on turnover was unsustainable since books were never rejected u/s 145(3), and adhoc estimation without basis is impermissible. Relying on PCIT vs RG Builder Engineer Ltd., ITAT allowed appeal and set aside entire addition.
Assessee represented by : Dilip Chatterjee, AR
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal filed by the assessee arises from order dated 22.07.2025passed u/s 250 of the Income Tax Act, 1961 (hereafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter referred to as “the Ld.CIT(A)].
2. Ground No. 1 is general in nature and does not require any specific adjudication. Ground No. 2 to 3 are against the order of Ld. CIT(A) upholding the assessment which has been invalidly reopened and is not in accordance with the provision of section 149(1)(b) of the Act.
