Mikesh Enterprises Pvt. Ltd. Vs DCIT (ITAT Delhi)
The appeal for Assessment Year 2011–12 was filed by the assessee against the order dated 23.10.2024 passed by the Commissioner of Income Tax (Appeals)-25, Delhi, arising from reassessment proceedings under sections 147 read with 144 of the Income-tax Act, 1961. When the matter was called for hearing before the Income Tax Appellate Tribunal, Delhi, no one appeared on behalf of the assessee despite multiple opportunities. Accordingly, the appeal was decided ex parte.
The Assessing Officer had reassessed the income at ₹1,88,39,440 against a returned loss of ₹16,901 by order dated 08.12.2018. The assessee raised several grounds challenging the reassessment and the additions confirmed by the CIT(A). These included objections to the validity of reopening under section 147, allegations of mechanical reopening based on borrowed satisfaction, non-supply of material forming the basis of reopening, and confirmation of an addition computed at 2% of total bank debits and credits as alleged commission income.
At the outset, the Tribunal noted that certain grounds were general in nature and did not require adjudication. These were rejected accordingly.
On the issue of non-supply of documents and reasons for reopening, the assessee contended that the Assessing Officer failed to provide the information forming the basis of issuance of notice under section 148 and did not comply with the directions of the jurisdictional High Court in the case of Sabh Infrastructure Ltd.. However, on examination of the record, the Tribunal found that the CIT(A) had clearly recorded that the reasons for reopening were supplied to the assessee on 25.10.2018. In view of this factual finding, the ground challenging reopening on this basis was rejected.
