The ITAT in its recent order (ITAT Delhi Bench ‘A’ in ITA No. 7072/Del/2019 dated 18.02.2022) has set aside the reassessment proceedings initiated by the Assessing Officer (AO) against the Assessee, Manujendra Shah for Assessment Year 2012-13.
The reassessment of income of the assessee for assessment year 2012-13 was conducted by the Assessing Officer (hereinafter referred to as “AO”) under section 147 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) read with section 148 of the Act. The said order of reassessment has been challenged by the assessee on the grounds that the reasons recorded by the AO for conducting the reassessment are defective and that the AO had not applied his mind while recording the reasons for reopening the assessment.
The learned Authorized Representative of Assessee stated that similar issue was decided by Hon’ble Delhi High Court in appeal filed by Assessee itself for immediately preceding assessment year i.e. AY 2011-12. The reasons for re-opening assessment for AY 2012-13 are materially same as considered by High Court for AY 2011-12 and similarly material information regarding valuation of land as on 01.04.1981 was not collected by Assessing Officer while dealing re-assessment proceedings for AY 2011-12 for ascertaining cost of acquisition of said property.
The reasons recorded by the AO for Re-assessment for AY 2012-13 are similar to the reasons recorded and held to be defective by the Delhi High Court in the assessee’s own case for AY 2011-12. Therefore, for the reasons applicable for AY 2011-12 and held to be defective by the High Court, the grounds of objection of the assessee for assessment year under appeal are also held to be valid.
Thus, the ITAT also found that the AO’s assumption of jurisdiction under the said sections was clearly invalid. Accordingly, the Re-assessment made by Assessee’s tax department also got struck off and accordingly, the Assessee’s appeal got allowed.
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