Appellant: Agroha Fincap Ltd., New Delhi
Respondent: ITO, Ward-1(4), New Delhi
Assessment Year: 2009-10
Case Number: ITA 2859/DEL/2022
Date of Filing: 2022-12-07
Order Type: Final Tribunal Order
Date of Order: 2023-07-07
Pronounced On: 2023-07-07
Agroha Fincap Ltd., a company based in New Delhi, filed its return of income for the assessment year 2009-10. The Income Tax Department initiated reassessment proceedings under Section 147/148 of the Income Tax Act, 1961, leading to the issuance of a notice to the company. Agroha Fincap Ltd. challenged the reassessment proceedings and subsequent additions made by the Assessing Officer (AO).
The primary issues under dispute were:
Agroha Fincap Ltd. raised several grounds in its appeal, challenging the reassessment proceedings and the additions made by the AO:
The Income Tax Appellate Tribunal (ITAT) bench, consisting of Shri C.M. Garg (Judicial Member), heard the case on 01.05.2023 and pronounced the order on 07.07.2023.
The tribunal found that the approval for reopening the assessment under Section 151 was given in a mechanical manner without proper application of mind, as observed in similar cases, including the assessee’s own case for AY 2010-11. Therefore, the reassessment proceedings were held to be bad in law and were quashed.
Since the reassessment proceedings were quashed, the subsequent additions made by the AO were also rendered invalid. The tribunal noted that the AO had not provided the assessee with copies of the material used against them or allowed cross-examination of relevant persons, making the additions unsustainable.
The ITAT allowed the appeal partly, quashing the reassessment proceedings and the subsequent additions. The tribunal ruled in favor of Agroha Fincap Ltd., stating that the approval for reopening the assessment was not given with due application of mind.
Order Pronounced in Open Court on 07.07.2023
Signatories:
C. M. GARG, JUDICIAL MEMBER
Assistant Registrar, ITAT, New Delhi
Agroha Fincap Ltd. vs. ITO, Ward-1(4), New Delhi – ITA 2859/DEL/2022 (Why the case was filed)
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