Case Law Details
Ramchandra Dashrath Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that reopening of assessment under section 147 of the Income Tax Act without iota of evidence or any cogent reasons is unsustainable and liable to be quashed.
Facts- The assessee is a partnership firm engaged as fruit merchant and commission agent for fruits in the APMC market. The assessee is also engaged in trading activities which were not reflected in the financial statement and in the income tax records.
Return declaring total income of ₹21,578/- was filed on 12.012.2002. Notices u/s 143(2) and 142(1) were issued and served on the assessee. Subsequently, questionnaire was sent to the assessee on 04.10.2 014. Search action was carried out u/s 132 of the Act in the name of Ramchandra Dashrath & Co. of 2002-03 wherein it was discovered that the assessee-firm i.e M/s Ramchandra Dashrath & Co. is also operating from the same premises as that of the search person. The original assessment order was passed u/s 143(3) on 22.09.2005 determining the total income of ₹1,62,60,859/- by the ACIT, Central Circle-36, Mumbai who was not the Assessing Officer of the assessee’s firm.
Being aggrieved by the said assessment order, the assessee-firm filed an appeal before CIT(A). CIT(A) vide order dated 19.05.2008 annulled the said assessment order as the same was passed by ACIT, Central Circle-36, Mumbai who did not have jurisdiction. The Assessing Officer gave effect to the order of the Ld. CIT(A) on 02.07.2008. Thereafter, notice u/s 148 dated 25.03.2009 issued by Dy. CIT-22(3), Mumbai who was the Assessing Officer of the assessee.
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