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2023 (6) TMI 570 - ITAT KOLKATAValidity of Income Escaping assessment u/s 147 - notice u/s 143(2) was not issued - ITR not filled on online portal - since the assessee filed the return manually, it was not possible for the revenue authorities to replicate the return on the system and the same was communicated to the assessee vide letter - HELD THAT:- The requirement of notice u/s 143(2) comes into effect only when the assessee has filed the return in compliance to the notice u/s 148 and to carry out the scrutiny proceedings AO should issue notice u/s 143(2) since it is a statutory requirement. In the instant case, the assessee has not filed the return as required under the Income-tax Act on the online portal and the manual return filed by the assessee is no return in terms of the Income Tax Rules, 1962, the ld. Assessing Officer was not required to issue any notice u/s 143(2) of the Act. Thus, Ground No. 1 raised by the assessee is dismissed. Proceedings initiated u/s 147 without application of mind and simply accepting the information without any further enquiry - No merit in this ground of the assessee because once the reasons were issued to the assessee sufficient opportunity was provided to establish the source of credits in the bank account stated in the information received from the Investigation unit - no mechanism for the income tax authorities to examine the fact that the alleged two bank accounts have been disclosed in the regular books of accounts and the credits appearing therein have not be taken into the books for the purpose of calculating the income, thus reopening proceedings were initiated with proper application of mind. Assessee was not provided reasonable opportunity of being heard - Assessee has not filed the financial statement of the sole proprietorship concerns as to whether they have been disclosed in the return of income. No details have been filed about the nature of business being carried out in these two proprietorship concerns and what is the profit being offered in the regular income tax return of such type of receipts. All through the proceedings before the lower authorities and before us, no specific details have been filed except copy of bank statement which does not indicate communication relevant for arriving at the income of the assessee. Thus restore the issue of merits to the ld. CIT(A), before whom, the assessee shall file all the supporting documents to establish that the alleged credits in the two bank accounts are business receipts, all the other entries in the bank account other than credits are also to be explained as to whether they are for purchasing the goods - Appeal of the assessee is partly allowed for statistical purposes.
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