Case Law Details
Plaza Cable Industries Ltd Vs DCIT (ITAT Delhi)
The maintainability of jurisdiction under Section 147 of the Act is central to the controversy in the instant case. On perusal of the reasons recorded under Section 148(2) of the Act qua the alleged escapement as reproduced in paragraph 6 above, it is straightaway noticed that the reasons have been recorded in a most perfunctory manner. The Assessing Officer has not even attempted to met the basic condition of holding “reason to believe” towards alleged escapement at all. The action of the Assessing Officer is highly tentative and non-descript. The Assessing Officer has simply proposed to re-assess the income as pointed out by the audit. There is no belief whatsoever. The process of reasoning for coming to the factum of escapement is sorely missing. The Assessing Officer has resorted to Section 147 of the Act primarily as alternative to Section 263 or Section 154 owing to the admitted fact that the action under Section 263 cannot be taken due to bar of limitation. As further asserted by the Assessing Officer, the rectification under Section 154 also cannot be taken. Such approach of a quasi-judicial authority like the Assessing Officer is totally incomprehensible and innately opposed to the basic cannons of law embedded in Section 147 of the Act. Needless to say, the invocation of jurisdiction under Section 147 is governed by its own set of stringent statutory requirements and is not alternative to the provisions of Section 263 of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
The captioned has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-XVII, Delhi [‘CIT(A)’ in short], dated 26.12.2013 arising from the assessment order dated 04.11.2011 passed by the Assessing Officer (AO) under Section 144 r.w. Section 147 of the Income Tax Act, 1961 (the Act) concerning AY 2004-05.
2. In the captioned appeal, the assessee has raised the grounds of appeal reproduced as under.
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