Maharana Pratap Polytechnic Society Vs DCIT (Exemption) (ITAT Lucknow)
The assessee appealed against the order of the CIT(A)/NFAC for AY 2016-17 confirming the validity of reassessment under Section 148, refusing to condone delay before the CIT(A), and sustaining an addition of ₹2,82,95,535 under Section 69A. The Tribunal condoned the delay in filing the appeal before it under Section 253(5) and admitted the appeal.
The original assessment under Section 143(3) dated 27.11.2018 accepted the returned income without any addition. Subsequently, reassessment under Sections 147 read with 144 resulted in an addition of ₹2,82,95,535 under Section 69A, treating cash deposits in the bank account as unexplained money. The assessee explained that the deposits represented fees paid directly by students into the bank account of the charitable society running a government-aided college. The Assessing Officer rejected the explanation for want of corroborative evidence.
The ITAT examined the reassessment order and found that the issue of cash deposits had already been scrutinized during the original assessment proceedings. The Assessing Officer had recorded that information regarding the cash deposits had been called for, the assessee had furnished explanations and supporting documents, and the assessment under Section 143(3) was thereafter completed accepting the returned income. The Tribunal held that reopening under Section 147 on the same facts amounted to a review and change of opinion, which is beyond the scope of reassessment proceedings. Accordingly, it held the initiation of reassessment to be invalid and annulled the assessment order dated 28.03.2022.
