2024 (5) TMI 592 - AT - Income Tax

ITAT Pune overturns NFAC order, finds reopening of 2012-13 tax assessment unsustainable; appeal allowed.

The ITAT Pune allowed the assessee's appeal against the NFAC's order under section 147 of the Income Tax Act, 1961, for AY 2012-13. The tribunal found the ... Validity of reopening of assessment u/s 147 - Cash deposits in bank account - HELD THAT:- DR fails to dispute the clinching fact that the impugned re-assessment dated 26.12.2019 had assessed the assessee’s alleged customer advance(s) in tuition activity(ies) of Rs. 63,52,600/- after deducting 35% thereof as the corresponding expenditure; resulting in the impugned addition of Rs. 41,29,190/- as well as interest of Rs. 1,76,082/- received from fixed deposits with M/s. Baramati Sahakari Bank Ltd.; respectively. That being the case, there is no addition made regarding the foregoing sole reason of reopening. Faced with this situation, Jet Airways (I) Ltd. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] that the impugned reopening/re-assessment itself is not sustainable in law once the AO had not added the foregoing sum. Issues involved: Appeal against assessment u/s 147 of the Income Tax Act, 1961 for AY 2012-13.Summary:The appellate tribunal ITAT Pune heard the appeal of the assessee against the National Faceless Appeal Centre's order u/s 147 of the Income Tax Act, 1961. The assessee did not appear, leading to an ex-parte proceeding. The Assessing Officer initiated proceedings against the assessee for depositing cash in a bank in Pune. The re-assessment added alleged customer advances and interest received from fixed deposits. However, since no addition was made for the reason of reopening, the tribunal held the reopening itself as unsustainable in law, citing relevant case law. The appeal was allowed, rendering other merit-based arguments academic.In conclusion, the tribunal allowed the assessee's appeal against the assessment for the relevant assessment year.