DCIT Vs Manjeet Singh (ITAT Chandigarh)
The Income Tax Appellate Tribunal (ITAT) Chandigarh heard an appeal filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals)-43, New Delhi, dated 23.03.2022, which had annulled a reassessment order under Sections 147/143(3) of the Income Tax Act. The case centered around a cash deposit of ₹1 crore and the reopening of assessment proceedings. The Revenue argued that the CIT(A) erred in law by annulling the reassessment despite the Assessing Officer having issued a speaking order addressing the assessee’s objections. It further contended that the approval granted by the Principal Commissioner of Income Tax (Pr. CIT) for the issuance of notice under Section 148 was valid and involved due application of mind.
On the other hand, the assessee, Manjeet Singh, filed cross objections, arguing that the reassessment was invalid due to procedural lapses. The CIT(A) had found that the Assessing Officer relied solely on information from the Investigation Wing without conducting an independent inquiry, thus failing to establish valid “reasons to believe.” It was further held that the speaking order issued by the AO did not adequately address the objections raised by the assessee. The Tribunal accepted these arguments, also noting that the notice under Section 148 was issued by a non-jurisdictional officer, rendering the entire reassessment process void.
