2018 (1) TMI 1516 - HC - Income Tax

Court affirms Tribunal decision, finding addition beyond Income Tax Act scope. Assessee favored, appeal dismissed.

The Court upheld the Tribunal's decision, citing a previous case law and stating that the addition made was beyond the scope of the mentioned Income Tax ... Reopening of assessment - ITAT justification in treating the proceedings initiated u/S.147 r/w Sec.148 as ab-initio void - HELD THAT:- Tribunal while considering the matter has rightly relied upon the decision of this Court in CIT v. Ram Singh [2008 (5) TMI 200 - RAJASTHAN HIGH COURT]. The addition which was made was beyond the scope of Section 147 r/w Section 148 of the Income Tax Act. Therefore, the view taken by the Tribunal is required to be affirmed. Issue is answered in favour of the assessee and against the department. Issues:Challenge to Tribunal's decision based on ITAT ruling on IT Act sections validity.Analysis:The appellant challenged the Tribunal's decision, which favored the assessee based on a previous Court ruling. The Court framed a substantial question of law regarding the validity of proceedings under Section 147 r/w Section 148 of the Income Tax Act. The Court upheld the Tribunal's decision, citing a previous case law (CIT v. Ram Singh [2008] 306 ITR 343 (Raj.)), stating that the addition made was beyond the scope of the mentioned sections. Consequently, the Court affirmed the Tribunal's view in favor of the assessee and against the department. The appeal was dismissed accordingly.