Dream Infrastructure Vs ITO (ITAT Rajkot)
AY 2013-14 Reasons Used for AY 2011-12; Wrong-Year Reasons = Wrong Jurisdiction: Only Right Year, Right Reasons – ITAT Quashes Reopening for AY 2011-12
Assessee’s case was reopened u/s 147 based on information about alleged cash payment of Rs.8,00,000 to Shri Jawahar Mori found in loose sheets seized during survey. AO issued notice u/s 148 on 26.03.2018 & completed reassessment u/s 143(3) r.w.s.147 on 27.12.2018 treating the amount as income from undisclosed sources. CIT(A) upheld reopening & sustained addition relying on alleged inconsistencies in Assessee’s records & absence of corroborative evidence such as TDS certificates & signed confirmations.
Before Tribunal, Assessee raised a jurisdictional objection: reasons recorded by AO clearly pertain to AY 2013-14, not AY 2011-12. Tribunal examined reasons (including the annexure titled “WHERE NO REGULAR ASSESSMENT WAS MADE U/s 143(1)/147 FOR AY 2013–14”) & held that reopening for AY 2011-12 based on reasons belonging to an entirely different year is legally invalid. Tribunal observed that only the correct assessment year’s income can be tested for escapement & wrong-year reasons cannot confer jurisdiction. Since reopening itself was void, entire reassessment was quashed. Issues on merits became academic. Appeal allowed.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
