Case Law Details
Bharat Electronics Ltd. Vs ACIT (ITAT Bangalore)
In the world of taxation, assessments and reassessments play a crucial role in determining the tax liability of individuals and entities. However, there are certain principles and procedures that must be followed to ensure the fairness and legality of these processes. The case of Bharat Electronics Ltd. Vs ACIT, heard by the Income Tax Appellate Tribunal (ITAT) in Bangalore, sheds light on the issue of reassessment based on a mere change of opinion without the presence of new evidence.
The crux of the matter lies in the proceedings initiated under Section 148 of the Income Tax Act. In this case, the appellant, Bharat Electronics Ltd., had filed an appeal against the order passed under Section 143(3) read with Section 147 of the Act. The Commissioner of Income Tax (Appeals) or CIT(A) had confirmed certain additions made by the Assessing Officer (AO).
One of the primary arguments raised by the assessee before the ITAT was the maintainability of the proceedings initiated under Section 148. The appellant contended that even though objections to the reopening were submitted to the AO, they were not addressed before the reassessment was carried out. According to the appellant, the AO should have disposed of these objections through a speaking order before proceeding with the reassessment. Failure to do so, in their view, rendered the entire proceeding illegal and liable to be quashed.
The Tribunal, in its analysis, noted that the AO had indeed mentioned the objections raised by the appellant in the assessment order itself. Therefore, the AO had taken note of these objections before proceeding with the reassessment. Consequently, the Tribunal did not find sufficient grounds to quash the reassessment solely on the basis of objections not being independently addressed.
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