2025 (10) TMI 315 - SCH - Income Tax

Validity of reopening of assessment: non-production of records upheld CIT and Tribunal findings, appeal dismissed.

Validity of reopening of assessment was tested against the recorded reasons to believe and the original assessment order; production of those records was ... Validity of reopening of assessment - Directions to place on record copy of the reasons to believe and the original order u/s 143(3) - Revenue on instructions states that the original file is not traceable and hence, an adjournment slip has been moved - High Court concluded that Revenue is not interested in pursuing the appeal and the appeal was, accordingly, dismissed by the impugned order - again this Court issued a limited notice on the question whether on mere non-filing of relevant document, High Court ought to have drawn adverse inference on Revenue’s appeal. HELD THAT:- Having regard to the reasons recorded in detail by the CIT and the Tribunal, the direction to produce the records was to test the correctness of the findings returned by the CIT and the Tribunal. When records could not be produced it could not be demonstrated that findings returned by CIT and the Tribunal were perverse qua the objections. High Court had no option but to dismiss the appeal though it could have desisted from observing that Revenue is not interested in pursuing the appeal. In any view of the matter the fact remains that in absence of relevant materials, the findings returned by CIT, affirmed by the Tribunal, were not liable to be interfered with. Consequently, we do not find merit in this appeal. The same is, accordingly, dismissed. Leave granted. Appeal challenges a High Court order dismissing Revenue's appeal against the Tribunal, which had affirmed the CIT(A)'s setting aside of the Assessing Officer's reopening of assessment. Assessee's objections-non-furnishing of 'reasons-recorded' for reopening, absence of 'suppression of information', revised return after Finance Act, 2008 (inclusion of deferred tax for Section 115JB), non-disposal of objections to reopening, and that reopening amounted to mere change of opinion-were upheld by the CIT and Tribunal. The High Court directed production of the 'reasons to believe' and the original order under Section 143(3) to test those findings; Revenue failed to produce the records despite opportunities, asserting they were not traceable. The Court held that without the relevant materials 'it could not be demonstrated that findings returned by CIT and the Tribunal were perverse qua the objections,' and therefore the High Court rightly dismissed the appeal (though it could have avoided suggesting Revenue was not interested). Appeal dismissed.