Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 1405 - ITAT DELHIReopening of assessment u/s 147 - Investigation Wing had found out that there were certain persons, who had, on exchange of cash, received accommodation entries in the form of cheques from various persons, who admitted before the investigation Wing that such entries were bogus - HELD THAT:- in the case of assessee, no scrutiny assessment u/s 143(3) had taken place, therefore, whether such credits shown in the balance sheet were in the nature of income or not, could not have been found out, merely on perusal of the return of income - reason to believe of the AO that income had escaped assessment was on cogent grounds in view of the specific details of transaction provided by the Investigation Wing. Issue of notice u/s 148, which is the statutory procedure for enabling the Ld. AO to verify whether such information was correct or not, was rightly issued by the AO. However, merely because notice u/s 148 was issued does not mean that the information from the Investigation Wing was a gospel truth, and if on verification, the AO finds that no income can be held to have escaped in the hands of the assessee, no addition in respect of such information can be made to the appellant's income. Therefore, Ld. CIT(A) has rightly held that the issue of notice u/s 148 was good in law and the AO has followed the guidelines prescribed by the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. [2002 (11) TMI 7 - SUPREME COURT] by making note of satisfaction on cogent grounds before issuing the notice u/s 148. Notice u/s 148 and subsequent notices, issued by the AO could never have been served upon the assessee - As it is evident that the notice u/s 148 and subsequent notices, issued by the AO could never have been served upon the assessee as the same was issued at a wrong address, due to the mistake attributable to the Assessing Officer, in making due diligence of issuing the notice at the correct address given in the return of income itself. The latest address of the assessee was also available with the AO as return of income for assessment year 2010-11 and 11-12 also show the latest address at H.No.500, Gali No. 3, Chander Lok, Mandoli Road, Shahdra. Best judgment assessment - AO in the remand report has repeated the facts of the case and rather strengthened the arguments of the assessee that notice was issued at the wrong address at 55, Royal Palace, 1st Floor, Vikas Marg, Delhi, which was the address in earlier years much before the assessee had filed the return of income for the current year on 18.10.2004. Under the circumstances, as the notice u/s 148 which is foundation of the reassessment proceeding, was not served upon the assessee, the whole proceedings are held as void-abinitio. Under the circumstances, the action of the AO of making Best Judgment assessment u/s 144, in respect of which evidently no material was gathered by the AO, is not sustainable. Decided against revenue.
|