Avishkar Nirman Private Limited Vs ITO (ITAT Kolkata)
ITAT Kolkata allowed the appeal of Avishkar Nirman Private Ltd & quashed the reassessment proceedings for AY 2013-14 holding that the notice u/s 148 was issued beyond four years from the end of the relevant AY without alleging or establishing any failure on the part of the Assessee to disclose fully & truly all material facts.
The original assessment was completed u/s 143(3) & the reopening was triggered solely on the basis of information received from the Investigation Wing relating to alleged accommodation entries. The Tribunal observed that the AO had merely reproduced the investigation input without any independent application of mind & without recording the mandatory jurisdictional condition of assessee’s failure as required by the proviso to section 147. Relying on the Supreme Court judgment in CEAT Ltd, the Tribunal held the reopening to be invalid in law. Consequently, the notice u/s 148 & the assessment framed pursuant thereto were quashed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 16.09.2025 for the assessment year 2013-2014.
2. It was submitted by the Ld.AR that the assessee is challenging the reopening of the assessment. It was submission that the original assessment u/s.143(3) of the Act came to be completed in the case of the assessee on 28/01/2016. It was submission that notice u/s.148 of the Act had been issued to the assessee on 19/03/2020. It was he submission that this was beyond the period of 4 years from the end of the relevant assessment year. It was submission that the in view of provision of Section 147 of the Act, the AO must record the failure on the part of the assessee to disclose truly and fully all material facts as required for the assessment.
