TMI Blog2015 (2) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... the investigation report in the opinion of the Court, undoubtedly constituted such tangible material outside the record, which were received by the AO after the assessment was processed under Section 143 (1). - Decided against assessee. Absence of notice under Section 143 (2) - Held that:- In the present case, there is no doubt at all that the assessee cooperated and appeared both in the assessment as well as reassessment proceedings. Therefore, it had deemed notice of the re-assessment proceedings. Its contentions were taken into account. In such circumstances, issuance of notice is a mere empty formality. Thus, the non-issuance of notice, in the opinion of the Court, shall not vitiate the assessment proceedings after due service of not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 143 (1). Upon an enquiry and investigation report, the AO issued notice under Section 148, doubting a transaction based upon the transfer of shares and purchase by two subsequent transferees i.e. Raghubir Singh and Simranjeet Kaur. The assessment was completed with the addition of that amount to the assessee s final income. The matter was carried in appeal unsuccessfully to the CIT (A), and later, to the ITAT as well. The assessee was unable to persuade both the authorities to accept its submissions that the reassessment proceedings were without jurisdiction. On the merits as well, the ITAT confirmed the view of the Assessing Officer and the CIT (A) that the amount had to be added to the assessee s income and brought to tax. 4. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me figures as one of the beneficiaries of alleged bogus transactions, which had cropped up during the investigation carried out by the Directorate of Investigation, Jhandewalan. The entries relating to the transactions and the sums of money were also included in tabular statement as part of the note. CIT v. M/s Kelvinator of India Ltd, (2010) 320 ITR 561 (SC) states that the reassessment can be resorted to if there is tangible material justifying such move. The receipt of the investigation report in the opinion of the Court, undoubtedly constituted such tangible material outside the record, which were received by the AO after the assessment was processed under Section 143 (1). In the circumstances, the first ground urged is insubstantial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee cooperated and appeared both in the assessment as well as reassessment proceedings. Therefore, it had deemed notice of the re-assessment proceedings. Its contentions were taken into account. In such circumstances, issuance of notice is a mere empty formality. Thus, the non-issuance of notice, in the opinion of the Court, shall not vitiate the assessment proceedings after due service of notice under Section 147. This argument was not urged in the first instance at all either before the AO or before the CIT (A). 8. So far as the last ground, i.e., the merits as to the addition of ₹ 4,84,000/- goes, the basis for introducing Section 68 is understood in CIT v. Lovely Exports, 216 CTR 195 to say that the assessee not on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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