2012 (6) TMI 869 - AT - Income Tax

Tribunal directs reassessment, emphasizes fair review, grants assessee hearing, treats appeals as allowed.

Shri Dilip Shah Versus ACIT, Central Circle 11 Mumbai

The Tribunal set aside the CIT(A)'s order and directed reconsideration of the matter regarding the correctness of additions made in the original ... Additions u/s 153A/153B - In the light of the order passed u/s 263 dated 29.03.2011, the original assessments made under section 153A and 153B stand cancelled - Held that:- Having regard to the peculiar circumstances of the case we are of the view that the order dated 30.03.2011 passed by the CIT(A)-37, Mumbai deserves to be set aside. As declared in the open court, we set aside the impugned order of the CIT(A) and direct him to reconsider the matter both on technical aspect as well as on merits of the additions so as to protect the interests of the assessee. Issues:- Appeal against common order passed by CIT(A)-37, Mumbai- Assessments made under section 153A r.w.s. 143(3) of the Act- Cancellation of original assessments under section 153A and 153B by Revisional authority- Dismissal of appeals by CIT(A) as superfluous/not maintainable- Challenge of fresh assessment orders before CIT(A)- Legal course of action to consider correctness of additions made in original assessment orders- Setting aside the order passed by CIT(A) and directing reconsideration of the matterAnalysis:1. The appeals were directed against a common order passed by CIT(A)-37, Mumbai, related to assessments made under section 153A r.w.s. 143(3) of the Act. The assessee filed returns of income following a search by the Department, leading to assessments for various years. The income declared by the assessee and the income assessed by the Assessing Officer (AO) for each year were presented in a tabular format.2. The original assessments made under section 153A and 153B were cancelled by the Revisional authority under section 263 of the Act. Consequently, the CIT(A) concluded that the appeals against these assessments were superfluous and not maintainable. The assessee then appealed to the appellate Tribunal challenging this decision.3. The assessee argued that if the revision proceedings were quashed, the original assessment orders would stand restored, leading to the confirmation of the additional income assessed. It was contended that denying the right to file further appeals would be unjust, and the only legal recourse was to have the matter reconsidered by the CIT(A) to assess the correctness of the additions made in the original assessment orders.4. The Tribunal, after considering the submissions, set aside the order passed by the CIT(A) and directed a reconsideration of the matter on technical aspects and merits of the additions to safeguard the interests of the assessee. The assessee was granted a reasonable opportunity to be heard in this regard. The appeals filed by the assessee were treated as allowed for statistical purposes.5. In conclusion, the Tribunal's decision emphasized the importance of a thorough review of the assessments to protect the rights of the assessee, highlighting the need for a fair consideration of the additions made in the original assessment orders. The order was pronounced in open court on 27th June 2012.