×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
Both these appeals pr ferred by the assessee is against the separate orders of the Ld. CIT(A)-21, Kolkata dated 28.02.2018 for AY 2005-06 and 2006-07.
2. First we take up the appeal of the revenue for AY 2005-06. The revenue has raised the following grounds of appeal:
“1. That on the facts and in the circumstances of the case, Ld. CIT(A) has erred in holding that the notice issued u/s. 148 of the I. T. Act, 1961 on 19.08.2013 for AY 2005-06 was barred by limitation without appreciating the fact that assessee had bank deposits in a foreign country and in that case, sixteen years from the end of the relevant assessment year is the time limit for reopening assessment as per section 149(1)(c) of the I. T. Act.
2.That the Ld. CIT(A) has erred in law by saying that as per the Finance Act, 2012 as enacted by the Parliament, Section 149(1)(c) was made effective prospectively from 01.07.2012 and thereby also has erred in law by observing that there was nothing expressly provided by the amending Act, which indicate Legislative mind to make the provision applicable to those proceedings which had become barred by limitation on 0-1.07.2012.
3.that the Ld. CIT(A) has erred in law in holding that the provision u/s. 149(1)(c) are retro-active in operation inasmuch as they are applicable for AY 2006-07 onwards and in such sense, the assessment order passed u/s. 147 on 19.01.2015 for AY 2005-06 was void ab initio.”
3. The sole issue involved in the grounds of appeal of Revenue is against the action of the Ld. CIT(A) in holding that the proceedings u/s. 147 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) become time barred prior to 01.07.2012 could not be revived by the amendment in section 149(1)(c) of the Act. Therefore, according to him the assessment reopened by the AO on 19.08.2013 was barred by limitation and accordingly, the Ld. CIT(A) cancelled the order u/s. 147/143(3) of the act dated 19.01.2015 since it is ‘ab initio’ void.
1. I have carefully considered the submissions of the Ld. AR and perused the relevant provisions of the Act. The facts of the case are in narrow compass. The appellant in the present case is legal heir of late LalitMohanka who had filed return of income from AY 2005-06 during his lifetime. A search u/s. 132 was conducted on 22.09.2011 at the business and residential premises of Late LalitMohanka and M/s. Electro Zavod India Pvt Ltd on the premise that the Department was in possession of information that a bank account in the name of Shri LalitMohanka was opened by him with HSBC Private Banking, Geneva, Switzerland. In the course of search and subsequent proceedings conducted by the Authorized Officer, Smt. Mohanka, Legal Heir of her husband admitted the existence of such an account. It also appears that subsequent to search Mrs. Mohanka based on the information provided by the tax department had requested the said Bank to provide her with Statement of the said Bank A/c and the copy thereof on being supplied by the Bank was provided to the tax department.
Subsequent to search, proceedings under Chapter XIV of the Act were initiated by the Ld. AO for the AY 2006-07 and onwards. On receipt of the relevant bank statements, the Ld. AO noted that the said bank account was opened and the deposits in the said bank account were first made by Shri Mohanka in FY 2004-05 being previous year relevant to the AY 2005-06. Since the said assessment year did not come within the ambit of provisions of Section 153C,