Classic Transportation Private Limited Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, allowed the appeals filed by the assessees against reassessment orders relating to Assessment Years 2012-13 and 2011-12. The reassessments had been initiated to treat share application money of ₹12 crore and ₹1.10 crore received from M/s Concise Exim Private Limited as unexplained cash credits under the Income Tax Act, 1961.
The assessees contended that the reassessment proceedings were invalid because the original assessments had already been completed under Section 143(3), and the notices under Section 148 were issued beyond four years from the end of the relevant assessment years. The Tribunal observed that the Assessing Officer had not recorded any allegation that the assessees had failed to disclose material facts fully and truly, which is a mandatory statutory requirement for reopening assessments beyond the four-year period. Relying on the decision in Hindustan Lever Ltd. v. R.B. Wadkar, the Tribunal held that reopening reasons must stand on their own and cannot be supplemented later.
Accordingly, the ITAT quashed the reassessment proceedings and allowed both appeals, rendering other issues academic.
FULL TEXT OF THE ORDER OF ITAT DELHI
Both these assessees M/s Classic Transportation Private Limited and M/s Dependable Transport Private Limited; have filed their instant as many appeals ITA Nos. 7128 & 7257/Del/2025 against CIT(A)-29, New Delhi’s & CIT(A)/NFAC, Delhi’s twin orders 17th & 23rd September, 2025 in case no. 10849/2019-20 & DIN/order No. ITBA/NFAC/S/250/2025-26/1081037574(1) for assessment years A.Y. 2012-13 & 2011-12, involving proceedings u/s 143(3) r.w.s 147 of the Income Tax Act, 1961; hereinafter referred to as ‘the Act’, respectively.
