Amiya Shankar Ghar Vs ITO (ITAT Kolkata)
ITAT Kolkata: Reopening Beyond Six Years Quashed – Escaped Income Less Than ₹50 Lakh; Notice u/s 148 Issued Without Jurisdiction, Reassessment Set Aside
Background
- Assessee was a co-owner (1/9th share) in property sold for ₹1.46 Cr., his share being ₹16.27 lakh.
- AO reopened case u/s 147 by issuing notice u/s 148 on 27.07.2022.
- Assessee did not file return in response; AO proceeded with reassessment.
- Assessee argued reopening was illegal as it was beyond six years from end of AY 2014-15 and income allegedly escaping was far below ₹50 lakh threshold under s.149(1)(b).
Before CIT(A)
- Appeal dismissed for non-representation and without adjudicating validity of notice.
Tribunal’s Findings/ Decision
- Notice u/s 148 dated 27.07.2022 was issued after six years from AY 2014-15.
- As per s.149(1)(b), reopening after six years is permissible only if escaped income ≥ ₹50 lakh.
- In this case, addition was only ₹16.27 lakh (assessee’s share), well below limit.
- Hence reopening was time-barred & without jurisdiction.
- CIT(A) erred in not addressing this core issue.
- ITAT quashed notice u/s 148 and consequential reassessment order.
- Appeal allowed in favour of Assessee.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal filed by the assessee against the order of ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NAFC), New Delhi NFAC), Delhi dated 14.06.2024 in Appeal No.NFAC/2013- 14/10290827 passed for Assessment Year 2014-15.
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