Case Law Details
Shri Dinesh Kumar Gupta Vs ITO (ITAT Agra)
The issue under consideration is whether reopen assessment u/s 147 based on the same material which is examined by AO in original assessment is justified in law?
ITAT states that, the reasoning for reopening as mentioned in the assessment order clearly shows that the same material which was considered by the Assessing Officer in the original assessment order was again considered by the Assessing Officer in the re-assessment order and based on that, the reassessment proceedings were finalized and income of the assessee was computed. In our considered opinion, once the material/basis was considered and examined by the Assessing Officer in the original assessment proceedings, which is apparent from the finding recorded by the Assessing Officer. In our view, it is not permissible for the Assessing Officer for exercising powers u/s. 148 to reopen the assessment u/s. 147 of the Act. Even in the original assessment, the Assessing Officer has also mentioned that the purchase vouchers were from unregistered concerns and self made and further mentioned that the payments for purchase of material and labour & wages were made in cash. Once, the same material was available, then it was not open for the Assessing Officer to reopen the assessment. ITAT may fruitfully rely upon the decision of Kelvinator of India (supra) relied upon by the assessee and respectfully following the decision of Hon’ble Supreme Court and also other decisions in respect of reopening u/s. 147, the appeal of the assessee is allowed.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal is filed by the assessee feeling aggrieved from the order of ld. CIT(A)-2, Agra dated 30.11.2017 on the following grounds :
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