The Delhi Bench of Income Tax Appellate Tribunal (ITAT) while quashing the reassessment held that AO deemed to have applied his mind if facts are on record.
The assessee, Sahyog Infrastructure Pvt. Ltd originally filed its return of income 9 and the assessment under Section 143(3) of the Income Tax Act, 1961 (the Act) was made by the Assessing Officer. The case of the assessee was reopened under Section 148 of the Act vide notice on the basis of survey operation carried out on business premises of assessee along with the search operation on Ramprastha Builders, Assessee is contractor of that company, wherein during survey certain documents were impounded. Survey was conducted on 30/7/2009.
Accordingly notice under Section 148 of the Act was issued. The assessee requested the original return filed to be treated as return in response to this notice. Assessee filed its objection which was disposed of by the Assessing Officer by passing a separate order. Thereafter the Assessing Officer passed an assessment order under section 147 read with Section 143(3) of the Act on 26th of March, 2014 wherein he made an addition on several counts and assessed the total income of the assessee at Rs. 6,31,70,580/-.
The coram of Judicial Member Amit Shukla and Accountant Member Prashant Maharishi held that there is absence of any tangible material coming into his possession of the AO after passing of the original assessment order. It is imperative to re-open the case of the assessee that there has to be fresh tangible material in the possession of the Assessing Officer which was not available during the course of original assessment order. Otherwise the Assessing Officer does not have power to re-open the case of the assessee on the same material, when the original assessment was made under Section 143(3) of the Act on the same set of documents.
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