2018 (5) TMI 1691

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....143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 27/01/2014 relevant to Assessment Year (AY) 2006-07. 2. The Revenue has raised following grounds of appeal: "i) The ld CIT(A) has erred in law and on facts in quashing the order reopening of the assessment u/s 147 of the Act. ii) The ld. CIT(A) has further erred in not deciding the grounds on merits." 3. The interconnected issue raised by the Revenue is that Ld. CIT(A) erred in holding the proceedings initiated u/s 147 of the Act as invalid as well as without deciding the issue on merit. 4. Briefly stated facts are that the assessee in the present case is a Limited Company and engaged in the manufacturing business of ceramic....

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....issued impugned notice to the petitioner subject to suppressed sale transaction to income. In our opinion, impugned notice is inherently illegal and invalid and, therefore, it cannot be sustained for the aforesaid reasons. We are inclined to accept this petition and accordingly the petition succeeds and not hereby allowed. The impugned notice dated 20.03.2014 issued by the respondent is hereby quashed and set-aside. Rule is made absolute. No order as to costs." 7. The assessee further submitted that the facts of the case in hand are exactly identical as of the case pertaining to the assessment year 2007-08. Therefore, he prayed to the ld. CIT(A) to quash the assessment order framed u/s 147 of the Act. 8. The Ld. CIT(A) after consideri....

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....rved as under: "Having perused the assessment order made by the AO, the order made by the Commissioner of Incometax( Appeals) and the Income-tax Appellate Tribunal, we are satisfied that the Tribunal was justified n rejecting the application under section 256(1). It cannot be mater of an argument that the amount of sales by itself cannot represent the income of the assessee who has not disclosed the sales. The sales only represented the price received by the seller of the goods for the acquisition of which it has already incurred the cost. It is the realization of excess over the cost of incurred that only forms part of the profit included in the consideration of sales. Therefore, unless there is a finding to the effect that invest....

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.... I have carefully considered the reasons recorded for reopening by the A.O. in A.Y. 2006-07 and A.Y. 2007-08. It is found that the A.O. has recorded exactly same reasons and satisfaction based on the same facts as recorded in A.Y. 2007-08. Since the facts and circumstances are exactly identical and similar therefore respectfully following the decision of the Hon'ble Gujarat High Court in the case of the appellant in A.Y. 2007-08, the reopening in A.Y. 2006-07 is also quashed. The ground of appeal is allowed. 9. Since the appellant gets relief on the re-opening of the assessment, therefore, other grounds of appeals have not been adjudicated. 10. In the result the appeal is allowed" Being aggrieved by the order of Ld.....