PR COMMISSIONER OF INCOME TAX Vs. KULTAJ KATARIA

JUDGEMENT

(1.) The appellant-revenue has filed the instant appeal under Section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 19.04.2017, Annexure A.IV, passed by the Income Tax Appellate Tribunal, Delhi Bench, 'C', New Delhi (in short, "the Tribunal") in I.T.A. No.2079/DEL/2016 for the assessment year 2007-08, claiming following substantial question of law:-

(2.) A few facts relevant for the decision of the controversy involved, as narrated in the appeal, may be noticed. The respondentassessee is an individual deriving income from hiring of cabs under the name of M/s Genesis Wheels on rent, Gurgaon. The respondent-assessee filed his return of income declaring income of Rs. 4,09,530/- on 31.10.2007 for the assessment year 2007-08. Original assessment was completed under Section 143(3) on 23.12.2009 at a total income of Rs. 6,29,578/-. Subsequently, proceedings under Section 147 of the Act were initiated and notice under Section 148 of the Act was duly served on 18.03.2013. Re-assessment was completed under Sections 143(3)/147 of the Act on 28.03.2014 at a total income of Rs. 83,94,554/- by making the addition of Rs. 70,13,987/- on account of disallowance under Section 40(a)(ia) of the Act and addition of Rs. 7,50,989/- on account of difference of gross receipt as per profit and loss account and income tax return. Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax Appeals, [CIT(A)]. Vide order dated 01.02.2016, the appeal was dismissed by the CIT(A). Not satisfied with the order, the respondentassessee filed an appeal before the Tribunal. Vide order dated 19.04.2017, Annexure IV, the Tribunal allowed the appeal filed by the respondent-assessee and quashed the order dated 28.03.2014 passed by the Assessing Officer, holding that after expiry of four years from the end of the relevant assessment year, no action under Section 147 of the Act could be taken unless escapement of income was due to failure on the part of the assessee to make a return under Section 139 or in response to the notice issued under Sections 147/148 or disclose fully and truly all material facts necessary for his assessment. It was, thus, concluded that invoking of jurisdiction under Section 147 of the Act by the Assessing Officer was impermissible and could not be sustained. Consequently, order dated 28.03.2014 passed by the Assessing Officer was quashed. Hence, the instant appeal by the appellant-revenue.

(3.) We have heard learned counsel for the appellant-revenue.