Kissan Fats Limited Vs DCIT (ITAT Chandigarh)
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) disposed of two appeals involving different assessees for Assessment Year 2011-12 through a common order, as both cases involved identical facts and issues. The principal issue in both appeals was the validity of reassessment proceedings initiated under Section 148 of the Income Tax Act.
In the first appeal, the assessee challenged the reopening of assessment, contending that the notice under Section 148 had been issued on the basis of incorrect and invalid reasons. The assessee pointed out that the Assessing Officer (AO), while recording reasons for reopening, stated that the return of income for Assessment Year 2011-12 had been filed on 30.09.2010 declaring income of ₹1,62,28,910. However, the actual return for the relevant assessment year had been filed on 28.09.2011 declaring ‘Nil’ income.
The record showed that the date 30.09.2010 and the income figure of ₹1,62,28,910 actually pertained to Assessment Year 2010-11 and not to Assessment Year 2011-12. The assessee argued that the reasons recorded for reopening were therefore based on incorrect facts and could not form a valid basis for a belief that income had escaped assessment.
The Department did not dispute the discrepancy. A letter placed before the Tribunal stated that the concerned Assessing Officer had inadvertently mentioned the wrong date of filing of the return and the wrong income figure while recording reasons for reopening. According to the Department, these were merely typographical mistakes and did not affect the validity of the reassessment proceedings.
