The Commissioner Of Income Tax – 20, Mumbai v. M/S.kmg Jewellery

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.1284 OF 2011 The Commissioner of Income Tax – 20, Mumbai ..Appellant. Versus M/s.KMG Jewellery..Respondent. Mr.D.K. Kamwal for the appellant.Mr.B.V. Jhaveri for the respondent. CORAM : J.P. Devadhar &A.R. Joshi, JJ. DATE : 1[st] December 2011 P.C. : 1.This appeal is filed by the Revenue against the order of the Income Tax Appellate Tribunal dated 31[st] March 2011 in Income Tax Appeal No.275/Mum/08 relating to assessment year 2001-02. 2.In the present case, assessment for assessment year 2001-02 was sought to be re-opened by issuing a notice dated 29[th] March 2006 which is within four years from the end of the relevant assessment year. 3.The Income Tax Appellate Tribunal in para-12 of its order has held that the re-assessment was void-ab-initio by relying upon the judgment of this Court in the case of Hindustan Lever Limited V/s. R.B. Wadkar reported in 268 ITR 332. The decision of this Court in the case of Hindustan Lever Limited (supra) related to re-opening of the assessment beyond the period of four years from the end of relevant assessment year, whereas, in the present case the re-opening of the assessment is within four years from the end of the relevant assessment year and, therefore, the Income Tax Appellate Tribunal was not justified in holding that the re-assessmet order was void-ab-initio by relying upon the decision of this Court in the case of Hindustan Lever Limited (supra). 4.In this view of the matter, the order of the Income Tax Appellate Tribunal dated 31[st] March 2011 in Income Tax Appeal No.275/Mum/08 relating to assessment year 2001-02 is quashed and set aside and the matter is restored to the file of the Income Tax Appellate Tribunal for fresh decision in accordance with law. 5.The appeal is disposed off accordingly with no order as to costs. (A.R. Joshi, J.) (J.P. Devadhar, J.)