Case Number: ITA 5436/DEL/2019
Appellant: Sudhir Kumar, Meerut
Respondent: ITO Ward-2(5), Meerut
Assessment Year: 2010-11
Case Filed on: 2019-06-18
Order Type: Final Tribunal Order
Date of Order: 2022-09-29
Pronounced on: 2022-09-29
Court: IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH : SMC : NEW DELHI
Before: SHRI C.M. GARG, JUDICIAL MEMBER
Overview:
This appeal filed by the assessee, Sudhir Kumar, is directed against the order dated 06.05.2019 of the CIT(A), Meerut, relating to the Assessment Year 2010-11. The primary contention of the appellant was the invalidity of the reassessment proceedings initiated by the Income Tax Officer (ITO) under section 148 of the Income-Tax Act, 1961.
Proceedings:
When the case was called for hearing, neither the assessee nor his authorized representative appeared, nor was any adjournment application filed. From the perusal of the appeal records, it was noted that the notice issued to the assessee was returned by the Postal Authorities with a remark ‘lene se inkar,’ indicating refusal to accept the notice. Consequently, the case proceeded ex parte, considering the argument of the Senior Departmental Representative (DR).
Key Grounds of Appeal:
Decision:
The tribunal reviewed the relevant assessment records, including the order sheets from the date of recording of reasons (27.03.2017) to 07.07.2017. It was found that these order sheets, including those related to the issuance of notices under sections 148 and 142(1) of the Act, were handwritten and lacked the signature of the Assessing Officer (AO).
The tribunal cited the case of Shri Pinnamaraju Venkatapathi Raju vs. JCIT (ITAT Vishakapatnam) and observed that non-compliance with statutory requirements, such as recording reasons for issuing notices and the absence of signatures, invalidated the reassessment proceedings.
In light of these findings, the tribunal held that the AO neither complied with the statutory requirements for issuing notice under section 148 of the Act nor adhered to the law laid down by the Hon’ble Supreme Court regarding reassessment proceedings. Consequently, the tribunal ruled that the AO did not have valid jurisdiction to initiate reassessment proceedings and to issue the notice under section 148 to the assessee.
Conclusion:
As a result, the notice issued under section 148 of the Act, the reassessment proceedings, and the impugned reassessment order were declared bad in law and were quashed. The tribunal allowed the appeal filed by the assessee, Sudhir Kumar, and annulled the reassessment order made under section 147 read with section 143(3) of the Income-Tax Act.
Order Pronouncement:
The decision was pronounced in the open court on 29.09.2022.
Signatories:
SD/-
(C.M. GARG)
JUDICIAL MEMBER
Dated: 29th September, 2022
Copy forwarded to:
Asstt. Registrar, ITAT, New Delhi
Invalid Reassessment: Sudhir Kumar vs. ITO Ward-2(5), Meerut – ITA 5436/DEL/2019
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