Star Tradecom Private Limited Vs ITO (ITAT Kolkata)
The appeal before the ITAT Kolkata arose from an order of the National Faceless Appeal Centre for Assessment Year 2009-10. During the appellate proceedings, the assessee raised an additional legal ground challenging the validity of the reassessment proceedings. The assessee contended that the reassessment initiated through a notice under Section 148 and completed under Sections 147/143(3) was invalid because no statutory notice under Section 143(2) had been issued or served. It further argued that since the reassessment order itself was non est, the subsequent revisionary proceedings under Section 263 based on that assessment were also liable to be quashed.
The Tribunal admitted the additional ground, observing that it involved a pure question of law and that all relevant facts were already available on record, making further factual verification unnecessary. It held that a legal issue may be raised before an appellate authority for the first time even if it was not urged before the lower authorities. In support of this conclusion, the Tribunal referred to the decisions in Jute Corporation of India Ltd., National Thermal Power Co. Ltd., and Britannia Industries Ltd..
The assessee had originally filed its return of income, which was processed under Section 143(1). Subsequently, the Assessing Officer reopened the assessment under Section 147 by issuing a notice under Section 148 on the ground that income relating to miscellaneous expenses had escaped assessment. A reassessment order under Sections 147/143(3) was thereafter passed determining a higher total income.
