Commissioner of Income Tax vs D.D. Gears Ltd.

CM Nos. 11043/2008 & 12306/2008 (for condonation of delay)

The delay in filing the appeals is condoned.

These applications stand disposed of.

IT A Nos. 940/2008 & J 039/2008

These appeals relate to the assessment year 1996-97 and 1997-98 and arise out of the common order dated 10-8-2007 passed by the Income Tax Appellate Tribunal in ITA Nos. 4562 and 4563/Delhi/2004 in respect of assessment years 1996-97 and 1997-98, respectively. Since identical issues are raised in these appeals, they are being disposed of by this common order.

The original assessments were completed on 30-3-1999 and 29-3-2000 u/s 143(3) of the Income Tax Act, 1961 in respect of the assessment years 1996-97 and 1997-98, respectively. A search was conducted on 29-8-1996 u/s 132 of the said Act and the audit report was also received by the Assessing Officer u/s 142(2A). Thereafter, notices u/s 143(2) of the said Act were issued on 24-3-2003 and reassessment order was framed which was apparently based on the search and the special audit report.

It is also pertinent to note that two block assessments had been completed one on 29-4-1998 and another on 26-3-2003, after the first block assessment was set aside by the Tribunal. The materials gathered during the search were available with the Assessing Officer when the assessments were taken up. It is also relevant to note that the special audit report had been sent to the Assessing Officer under cover of the letter dated 20-4-1998 and was obviously available with the Assessing Officer at the time the original assessments were completed on 30-3-1999 and 29-3 -2000.

It is on the basis of these facts that the Tribunal came to the conclusion that no new material or fact or evidence had come into the possession of the Assessing Officer subsequent to the completion of the original assessments and that it was on the basis of the same materials which were available with the Assessing Officer that the proceedings u/s 147/148 of the said Act were sought to be initiated by the Assessing Officer. According to the Tribunal, this constituted a mere change of opinion on the basis of the same materials and, therefore, was not permissible in view of the decision of this Court in the case of Jindal Photo Films Ltd. Vs. The Deputy Commissioner of Income Tax,

We agree with the conclusions arrived at by the Tribunal. No interference is called for and in any event no substantial question of law arises for our consideration. The appeals are dismissed.