ACIT Vs JD Ispat Pvt Ltd (ITAT Nagpur)
In the case of ACIT vs JD Ispat Pvt Ltd, the Income Tax Appellate Tribunal (ITAT), Nagpur Bench, dealt with the validity of reassessment proceedings and the consequences of non-issuance of notice under Section 143(2) of the Income Tax Act.
The Revenue challenged the order of the Commissioner of Income Tax (Appeals) [CIT(A)], who had set aside the reassessment order for fresh adjudication. The assessee had originally filed its return for Assessment Year 2018–19 declaring nil income. The return was processed under Section 143(1). Subsequently, based on information that the assessee had received Rs.15 lakh from another company, the department initiated reassessment proceedings under Sections 147 and 148.
The assessee explained that the amount represented an advance received against sale of goods and furnished supporting records including books of account and invoices. However, the Assessing Officer completed the reassessment ex parte under Sections 147, 144, and 144B and made an addition of Rs.2.33 crore under Section 68, treating the entire sales amount as unexplained income.
Before the CIT(A), the assessee produced several documents such as ledger accounts, invoices, gate passes, weighment slips, audited financial statements, bank statements, and tax records to establish the genuineness of the transactions. Considering these materials, the CIT(A) exercised powers under Section 251(1)(a) and restored the matter to the Assessing Officer for fresh assessment after proper verification.
