The High Court of Delhi dismissed appeals against ITAT orders. Rejecting reliance on CIT Vs. PVS Beedis, the Court held arguments untenable in light of CIT Vs. Kelvinator of India Ltd and Section 147 amendments, finding no question of law arose.
Appeals by the Revenue were dismissed with no question of law arising.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
$~26 & 27
O R D E R % 09.02.2018
The Revenue is aggrieved by two decisions of the ITAT which held that the opening of the assessment was unwarranted.
The assessee had filed the books for the relevant assessment year (AY-2007-2008) and closing stock in respect of work declared to be in progress; the assessments were completed. The assessment notice was issued entirely based upon the audit objection which pointed out that the evaluation of stock was based on mere reappraisal
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of the same record without any tangible material or information.
The CIT and ITAT both upheld the re-assessment notice but delayed the assessment, after examining it on merits.
The ITAT affirmed the CIT’s opinion but held that the re-assessment was unwarranted and relied upon the judgment of the Supreme Court in CIT Vs. PVS Beedis Pvt. Ltd. 1998 (9) SCC 272.
This Court is of the opinion that these arguments are untenable in view of the subsequent decision of the Supreme Court in CIT Vs. Kelvinator of India Ltd , 320 ITR 561 (SC) with regard to the permissible framework within which the Revenue Authority can issue re-assessment notice.
Nevertheless, the Court has also considered all the relevant previous decisions especially in the light of the amendments to Section 147 which has also inserted Explanation 1.
For these reasons, this Court is of the opinion that no question of law arises. The appeal is dismissed.
S. RAVINDRA BHAT, J
A. K. CHAWLA, J
FEBRUARY 09, 2018/P
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2 issues framed by the court
Whether the issuance of a re-assessment notice based on audit objections regarding stock evaluation was unwarranted under Section 147.
Whether the Supreme Court in CIT Vs. Kelvinator of India Ltd overrules the principles laid down in CIT Vs. PVS Beedis Pvt. Ltd.
Colour shows how this judgement treated each authority
CIT Vs. PVS Beedis Pvt. Ltd.Distinguished¶10
1998 (9) SCC 272 · Who else cites this
CIT Vs. Kelvinator of India LtdApplied¶11
320 ITR 561 (SC)
1 provisions across 1 enactments
Principal Commissioner of Income Tax Delhi-08
M/S S. CHAND & CO. LTD.
S. Ravindra Bhat
A. K. Chawla
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
