September 2023

There is no need for the AO to issue reopening notice before the expiry of time available to file return under section 139(4) and that too before the end of the assessment year itself. Reopening of an assessment cannot be resorted to as an alternative for not selecting a case for scrutiny.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain, Advocate

Reading Time 4 mins

26. Uttarakhand Poorv Sainik Kalyan Nigam Ltd vs. ITO
ITA No. 3129/Delhi/2018
A.Y. : 2014–15
Date of Order : 23rd June, 2023
Sections : 139(4), 147

There is no need for the AO to issue reopening notice before the expiry of time available to file return under section 139(4) and that too before the end of the assessment year itself. Reopening of an assessment cannot be resorted to as an alternative for not selecting a case for scrutiny.

FACTS

For the assessment year 2014–15, the assessee filed its return of income belatedly under section 139(4), on 6th October, 2015, declaring total income to be Rs. Nil after claiming exemption of Rs. 5,11,44,966 under section 10(26BB) of the Act. This return of income was not selected for scrutiny by the AO.

The AO, in fact, prior to the date of filing of return of income by the assessee issued a notice under section 148 of the Act on 22nd January, 2015, i.e., before end of the assessment year itself and before expiry of time available to assessee to file belated return.

Aggrieved, the assessee preferred an appeal to CIT(A) where interalia it raised this issue of reopening notice, being issued before the end of the assessment year itself. The CIT(A) decided this ground against the assessee.<

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