Case Law Details
ITO Vs Maiden Marketing India Private Limited (ITAT Mumbai)
Introduction: In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Mumbai has declared the reopening of an assessment after four years, with the approval of a Joint Commissioner, as invalid in the case of ITO Vs. Maiden Marketing India Private Limited. This decision holds crucial implications for the validity of reopening assessments under the Income Tax Act.
Detailed Analysis
1. Background: The appeal filed by the revenue and the cross-objection filed by the assessee pertain to the same issue and are being adjudicated together. The revenue raised concerns about the CIT(Appeals) holding that certain issues had already been examined during the original assessment and, therefore, the additions made during the reassessment amounted to a review of the earlier assessment, which is not permitted. The assessee, in their cross-objection, contested the validity of the reopening of the assessment under Section 147/148, claiming that the approval obtained under Section 151 was not valid.
2. Invalidity of Reopening: The crux of the cross-objection lies in the approval for reopening the assessment. The approval for reopening was obtained from the Joint Commissioner of Income Tax (JCIT), even though the assessment was being reopened after four years from the relevant assessment year.
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