DCIT Vs JCT Limited (ITAT Delhi)
Beyond Jurisdiction & Beyond Four Years: Delhi ITAT Dismisses Revenue Appeals—Forum Wrongly Chosen for AY 1999-00 & Reopening on Carbon Credit Loss Quashed for AY 2013-14
Delhi ITAT, Delhi Bench ‘E’, in DCIT Vs JCT Limited (ITA Nos.2145 & 2146/Del/2025; AYs 1999-00 & 2013-14; order dated 19-12-2025), dismissed both Revenue appeals, though on distinct legal grounds.
For AY 1999-00, the Tribunal held that the appeal itself was not maintainable before ITAT Delhi, since the consequential assessment order pursuant to Tribunal directions had been passed by the AO at Kolkata. Relying on the Supreme Court decision in PCIT Vs ABC Papers Ltd. (447 ITR 1), it ruled that the jurisdictional ITAT alone—ITAT Kolkata—could entertain the appeal. Accordingly, the Revenue appeal was dismissed in limine, with liberty to approach the correct forum.
For AY 2013-14, the Tribunal upheld the order of the Ld. CIT(A) quashing the reassessment u/s 147. It noted that the original assessment had been completed u/s 143(3) and the reopening was initiated 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 and truly all material facts. The assessee had consistently offered income from sale of Carbon Emission Reduction Credits as business income in earlier and subsequent years, which had been accepted by the Department. The reopening was triggered merely because the assessee incurred a loss in the impugned year, reflecting a pure change of opinion without any fresh tangible material, contrary to the law laid down in CIT Vs Kelvinator of India Ltd.
The Tribunal further concurred that there was no whisper of new material in the reasons recorded, and reopening amounted to an impermissible review of concluded assessment. Finding no infirmity in the CIT(A)’s reasoning, the Tribunal dismissed the Revenue appeal, reaffirming that reassessment beyond four years cannot survive on a mere change in stance.
FULL TEXT OF THE ORDER OF ITAT DELHI
These two appeals are filed by the revenue against different orders of the Ld. CIT(A)-29, New Delhi dated 10.12.2024 and 12.12.2024 for the A.Y. 1999-2000 and 2013-14 respectively, arising out of the assessment orders passed u/s. 254 / 251 /143(3) of the Act for A.Y.1999-2000 and u/s. 144B r.w. 147 of the Act for the A.Y.2013-14.
