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2015 (7) TMI 979 - ITAT AHMEDABAD

2015 (7) TMI 979 - ITAT AHMEDABAD - TMI - Reopening of assessment - Addition on account of negative cash balance as on 31.03.2002 - Unexplained receipts - CIT(A) deleted the addition - Held that:- The impugned order of reassessment passed by the AO without disposing off the objections raised by the assessee against the issuance of notice u/s 148 by a separate order is liable to be quashed. See ACIT, Cen.Cir.-2, Baroda vs. M/s Sagar Developers [2015 (7) TMI 718 - ITAT AHMEDABAD] and General Motor .....

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der :- 1. The ld. CIT(A) erred in law and on facts in deleting the addition of ₹ 39,94,398/- which was made on account of negative cash balance as on 31.03.2002. 2. The ld. CIT(A) further erred in law and on facts in deleting the addition of ₹ 7,38,000/- which was made on account of unexplained receipts. 3. The first ground relates to deletion of addition of ₹ 39,94,398/- which was made on account of negative cash balance. In this case, the assessee has not furnished any eviden .....

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data of 65 companies (as per software s language), i.e. entities (files), books of account for different period was found. Among these 65 entities, the assessee was the one of whom books of account in the name of (company as per tally software) Parshwa Corporation was maintained. During the course of search as well as post search enquiries, the key person of the group Shri Rameshbhai B. Shah categorically stated that these accounts were being maintained for various business transactions/accounts .....

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me. Accordingly, the Assessing Officer issued notice under section 148 on 31.3.2009 and subsequently questionnaires were issued calling for details/information vide notice u/s 142(1) on 15.09.2009, 12-10- 2009 and on 05-11-2009. In response to the notices, the assessee made its submissions along with objections on 16.10.2009, on 26.10.2009 and on 16.11.2009 before the Assessing Officer. The Assessing Officer considered the submissions/objections but rejected the same. The Assessing Officer has d .....

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fore the first appellate authority, who after considering the submissions of assessee deleted the impugned additions. The Revenue being aggrieved with the order of first appellate authority has preferred this appeal before the Tribunal. The ld. DR supported the order of Assessing Officer whereas the ld. AR relied on the order of first appellate authority and raised various legal submissions to support the order of Assessing Officer. On other hand, ld. AR supported the order of CIT(A). 4. After c .....

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ng as under :- 7. We have heard the rival submissions and perused the orders of the lower authorities and material available on record. In the instant case, the respondent assessee in terms of Rule -27 of the Income-tax Appellate Tribunal Rules, 1963 supported the order of CIT(A) on the ground that the impugned assessment order was bad in law as the reassessment was made without disposing off the objections raised by the assessee against the initiation of reassessment proceedings by a separate o .....

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issuance of notice u/s 148 of the Act were not disposed off by the AO by passing a speaking order thereon and allowing reasonable time to the assessee after communicating the fate of the objections before processing with the reassessment. The Hon ble Gujarat High Court in the case of General Motors India P. Ltd. vs. DCIT (supra) has held as under :- From the aforesaid discussion, we are of the considered opinion that the writ petition under article 226 of the Constitution of India is maintainab .....

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om assessment and in the absence of reasons having direct link with the formation of the belief, the writ court under article 226 can quash the notice issued under section 148 of the Act. The writ petition filed by the petitioner is maintainable. The AO is mandated to decide the objection to the notice under section 148 and supply or communicate it to the assessee. The assessee gets an opportunity to challenge the order in a writ petition. Thereafter, the AO may pass the reassessment order. We h .....

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