Case Law Details
Raj Kumar Maheshwari Vs ITO (ITAT Jaipur)
The issue under consideration is whether the re-opening of assessment u/s 147 by AO is justified in law?
ITAT states that, it is manifest from the reasons recorded by the AO in the assessment order that the AO received the information about the credit card bills payment and further the AO recorded the fact that since the assessee has not filed any return of income, therefore, it is not possible to verify the said transaction and tax liability in this transaction. These reasons recorded by the AO are factually not correct and the formation of belief by the AO is actually based on assumption of incorrect facts. ITAT find that the assessee has filed his return of income on 09.07.2010. Though the return was belated, however, the same was acknowledged by the department vide Acknowledgement No. 3471, the copy of the computation sheet has been placed in the Paper Book. All the details are matching with the return of income filed by the assessee. ITAT further note that for the assessment year 2010-11 the assessment was again reopened by the AO by issuing a notice under section 148 on 30.03.2017. However, the AO has not made any addition but accepted the return of income declared by the assessee in the original return of income while passing the order on 08.08.2017. Thus it is clear that the AO has reopened the assessment only on suspicion of escapement of income on account of credit card payment without considering the fact that the assessee already filed his return of income declaring total income as income under the head ‘Salary’. The AO during the course of assessment proceedings verified the income of the assessee from M/s. Genpact India as well as the details of the credit card payment from Citibank and the AO has received the requisite details from the said company. The assessee has duly brought to the notice of the ld. CIT (A) that the return of income was filed on 9th July, 2010. However, without considering the same, the ld. CIT (A) upheld the reopening of the assessment by recording the reasons on incorrect facts. Hence in the facts and circumstances of the case, ITAT find that the reopening of the assessment by the AO is without application of mind and simply going by the information received as per AIR Data. Hence the reopening of the assessment is quashed being invalid.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is directed against the order dated 21st February, 2019 of ld. CIT (A) for the assessment year 2009-10. The assessee has raised the following grounds of appeal :-
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