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TMI Blog2012 (12) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the notice u/s 148 had been issued on the basis of the order u/s 263 passed by the CJT for another year, and such order u/s 263 had been cancelled by the Hon'ble ITAT, ignoring the fact that on the date of issue of notice u/s 148 there was sufficient material on record, including the said order u/s 263, for the A.O. to form a reasonable belief that income chargeable to tax had escaped assessment by virtue of excess deduction allowed u/s 80fA." "2. Without prejudice to the above, the learned CIT(A) erred in quashing the assessment for the reasons stated in her order, ignoring the fact that the order passed by the CIT u/s 263 related to a different assessment year." 4 . Similar grounds of appeal have been raised by the assessee in their Cross Objections and the grounds raised in assessment year 1999-2000 reads as under: 1. Preliminary objections (a) The respondent has been stated incorrectly as there is no firm with the name mentioned in the Form of Appeal, filed by the Ld. Income Tax Officer, Parwanoo, HP (hereafter the ITO) and therefore, the appeal filed by the Ld. ITO is not maintainable. (b) The main ground of appeal is based 'on the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of valid jurisdiction under section 147 of the Act. (b) That the notice issued under section 148 of the Act (1) was not issued in accordance with law, and (2) was not addressed to 'the member of the firm', as required by section 282(2)(a) of the Act, And therefore the assessment made is bad in law, null and void ab-intio and deserves to be annulled. 6. That the Ld. ITO erred in framing the assessment under section 144 of the Act, particularly without proper service of the notice. 7. That the impugned assessment, having been completed on the dictates, directions, and instructions of Higher Authorities, relying upon the findings of the Hon'ble CIT for the assessment year 2001-02 in proceedings u/s 263 of the Act, without independent application of mind, is bad in law, null and void ab-intio and deserves to be annulled. 8. Deduction u/s 80IA (a) That the Id ITO erred in holding that the deduction, under section 80IA of the Act, is not admissible to the assessee, (b) That the Id ITO erred in disallowing deduction claimed at Rs. 32,43,963 under section 801A of the Act and thereby erred in making addition of Rs. 32,43,963, (c) That the Id ITO erred in holding that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the assessee claims it or not. 12. Short term capital gains (a) That the Ld ITO erred in assessing Rs. 20,27,735 as short term capital gains arising on alleged transfer of land and building, (b) That the Ld ITO erred in computing the capital gains on the basis of revalued value of the assets without appreciating that by mere revaluation and book entry no income / capital gains arises, (c) That the Ld ITO erred in applying the provisions of section 45 of the Act, It is, therefore, most humbly prayed that your honour may kindly be pleased to delete the addition of Rs. 20,27,735 being short term capital gains. Unsecured loans (a) That the Ld ITO erred in adding Rs. 5,00,000 being unexplained unsecured loans, under section 68 of the Act, (b) That the Ld ITO failed to appreciate the scope of section 147 of the Act and erred in making addition on the issue other than the issues for which proceedings were initiated u/s 147 of the Act, And it is, therefore, humbly prayed that your honour may kindly be pleased to delete the addition of Rs. 5,00,000. 14. Interest u/s 234 A and 234B That the Ld ITO erred in levying interest under section 234A and 234B of the Act and failed to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the assessee against the initiation of re-assessment proceedings under section 147/148 of the Act and service of notice under section 143(2) of the Act relating to assessment year 1998-99 has been decided by the Chandigarh Bench of the Tribunal vide order dated 24.5.2012 and the appeals involving similar issues as raised in the Cross Objections filed by the assessee, have been remitted back to the file of the CIT (Appeals). 7. In respect of the grounds of appeal raised by the Revenue in its appeals the learned D.R. for the Revenue further pointed out that no assessment was made in the present case and only there was processing of returns, consequent there to reasons were recorded for reopening of assessment and notice was issued under section 148 of the Act. However, in respect of the proceedings relating to assessment year 2001-02, the original assessment was completed under section 143(3) of the Act and the order passed under section 263 of the Act was quashed by the Tribunal as adequate enquiries were made by the Assessing Officer during the course of assessment proceedings. The learned D.R. for the Revenue drew our attention to the reasons recorded for re-opening of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t relating to assessment year 2001-02 has been cancelled by the Tribunal. 11. The facts relating to the issue are that the assessment relating to assessment year 2001-02 was completed under section 143(3) of the Act. There after the Commissioner of Income Tax passed the order of revision under section 263 of the Act dated 18.1.2005. The said order passed under section 263 of the Act was challenged by the assessee before the Tribunal and in ITA No. 433/Chd /2005 relating to assessment year 2001-02, vide order dated 13.8.2007, the Tribunal held that in view of the enquiries made by the Assessing Officer during the assessment proceedings, the initiation of proceedings under section 263 of the Act was without fulfillment of prerequisites of section 263 of the Act and the same were held to be invalLd. 12. The Assessing Officer had recorded reasons for reopening the assessment relating to assessment years 1998- 99 to 2000-01 and 2002- 03. The said reasons relating to assessment year 2000-01 are annexed at pages 5 to 7 of the Paper Book filed by the Revenue and relating to assessment year 1999- 2000 at pages 9 to 11 of the Paper Book. The perusal of the said reasons recorded for reopen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is first year of challenging the claim of deduction under section 80IA of the Act. The assessee in the said appeal has raised objection against both the issue of notice under section 148 of the Act and non issue of notice under section 143(2) of the Act. Similar issues have been raised by the assessee in the captioned appeals slated before us. In view of the similar issues being raised by the assessee in assessment yea r 1998-99 and also in the appeals relating to assessment years 1999-2000, 2000-01 and 2002-03 and following the principles of natural justice we deem it fit to restore the present issues back to the file of the CIT (Appeals) to decide the same de - novo in accordance with law after affording reasonable opportunity of hearing to the assessee. The assessee is directed to appear before the CIT (Appeals) for speedy disposal of the appeals. The appeals filed by the Revenue relating to assessment years 1999- 2000, 2000-01 and 2002-03 and Cross Objections filed by the assessee against the said appeals filed by the Revenue are allowed for statistical purposes. 14. In the result, all the three appeals of the Revenue and the Cross Objections filed by assessee are allowed fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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