The Income Tax Appellate Tribunal (ITAT) Delhi Bench “F” delivered its judgment on the appeal filed by Rajesh Gulati against the order passed by the Commissioner of Income Tax (Appeals)-XXXIV, New Delhi. The case was heard by Shri Chandra Mohan Garg, Judicial Member, and Shri Pradip Kumar Kedia, Accountant Member.
The appeal was filed challenging the order passed by the CIT(A)-XXXIV, New Delhi, which arose from the assessment order dated 13.12.2017 passed by the Assessing Officer (AO) under Section 147/148 of the Income Tax Act, 1961, for the Assessment Year 2010-11.
During the hearing, the appellant’s representative, Shri Vipin Jain, CA, contended that the AO assumed jurisdiction based on the incorrect premise that the appellant had not filed his return of income. The representative presented evidence of the return e-filed for Assessment Year 2011-12 to rebut this claim.
The Tribunal noted that the reasons recorded for initiating proceedings under Section 147/148 were based on the incorrect assumption that the appellant had not filed his return of income. The Tribunal referenced similar cases where jurisdiction was assumed without a proper foundation, citing judgments that ruled such actions as unsustainable in law.
The Tribunal agreed with the appellant’s plea, finding that the assumption of jurisdiction was based on a non-existent premise. The Tribunal quashed the reassessment notice and order, declaring them illegal and without authority of law. Consequently, the Tribunal did not find it necessary to delve into the merits of the additions or disallowances in question.
The appeal filed by Rajesh Gulati was allowed, and the reassessment notice and order were quashed. The Tribunal emphasized the importance of correct assumptions and foundations for initiating proceedings under Section 147/148.
Order pronounced in open court on 22nd September, 2022.
sd/- (Chandra Mohan Garg) JUDICIAL MEMBER
sd/- (Pradip Kumar Kedia) ACCOUNTANT MEMBER
Dated: 22/09/2022
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