Case Number: ITA 1467/DEL/2020
Appellant: Manish Mittal, Narnaul
Respondent: ITO Ward-1, Narnaul
Assessment Year: 2013-14
Result: 2013-14
Case Filed On: 2020-08-05
Order Type: Final Tribunal Order
Date of Order: 2022-08-08
Pronounced On: 2022-08-08
Manish Mittal, residing in Narnaul, filed an appeal against the order of the CIT(A), Rohtak dated 04.02.2020, contesting the disallowance of expenses for the assessment year 2013-14. The primary issue was related to the deposits in his savings bank account and the purchase of immovable property, which led to the initiation of reassessment proceedings.
The case was heard by the Delhi Bench ‘E’ of the Income Tax Appellate Tribunal (ITAT), New Delhi, comprising Shri N. K. Billaiya, Accountant Member, and Shri Yogesh Kumar US, Judicial Member.
ITA No. 1467/Del/2020: This appeal by Manish Mittal was against the order of the CIT(A), Rohtak dated 04.02.2020, pertaining to A.Y. 2013-14 regarding the disallowance of expenses claimed by the appellant.
The appellant’s counsel vehemently argued that the entire assessment was devoid of any addition relating to the reasons which prompted the AO to reopen the assessment. It was argued that such an assessment order is bad in law and deserved to be quashed. The counsel relied on the decisions of the Hon’ble Bombay High Court in the case of Jet Airways India Limited 331 ITR 236 and Ranbaxy Laboratories Limited 336 ITR 136 (Del).
The Tribunal noted that the reasons for reopening the assessment were the cash deposits in the savings bank account amounting to Rs. 53.73 lakhs and the purchase of immovable property amounting to Rs. 27.63 lakhs. However, the assessment was completed by making additions on account of disallowance of the claim of expenditure, which were unrelated to the reasons for reopening the assessment.
The Tribunal held that the AO was not justified in making the impugned additions/disallowances when the reasons for the initiation of reassessment proceedings ceased to survive. The Tribunal found that the decision of the Hon’ble Bombay High Court in the case of Jet Airways (supra) and the Hon’ble Jurisdictional High Court of Delhi in the case of Ranbaxy Laboratories (supra) squarely applied to the facts of the case.
In light of the above findings, the Tribunal quashed the assessment order and allowed the appeal. The Tribunal directed the AO to delete the impugned additions and disallowances made during the reassessment proceedings.
Order pronounced in the open court on 08/08/2022.
SD/- SD/-
(YOGESH KUMAR US) (N. K. BILLIAIYA)
Judicial Member Accountant Member
Date: 08/08/2022
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Assistant Registrar, ITAT, New Delhi
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