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2015 (9) TMI 1294 - ITAT DELHI

2015 (9) TMI 1294 - ITAT DELHI - TMI - Revision u/s 263 - whether the CIT in exercise of his powers vested under Section 263 can revise that reassessment order with the intention of bringing into the tax some other items which do not form part of the reasons recorded at the time of issuing notice under Section 148? - Held that:- The identical issue had come up before the Hon’ble Jurisdictional High Court in the case of CIT Vs. Software Consultants, [2012 (2) TMI 18 - DELHI HIGH COURT] wherein th .....

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the Act in order to bring to tax other items of additions.

Respectfully following the ratio laid down in the above case, we hold that in the present case also the Commissioner of Income Tax is not justified in exercising the power under Section 263 of the Act. - Decided in favour of assessee. - ITA No. 1838/Del/2015, S.A. No. 380/Del/2015 - Dated:- 4-9-2015 - SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For The Appellant : Sh. C.S. Anand, Adv. For The .....

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peal: 1) That the Id. Pr. CIT, Delhi-D7, New Delhi has wrongly assumed jurisdiction to initiate proceedings u/s 263. 2) That the order passed u/s 263 by the Id. Pr. CIT, Delhi-D7, New Delhi, is bad on various factual & legal grounds. The observations of the Id. Pr. CIT, Delhi-07, New Delhi are either factually incorrect or legally untenable. 3) That the Id. Pr. CIT, Delhi-D7, New Delhi had erred in initiating proceedings u/s 263 on the basis of incorrect facts. The observations of the Id. Pr .....

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file of the Id. A.O., with the remarks "the matter is referred to the file of the Assessing Officer for examining the facts, verification of claim of the assessee in the light of position of law enunciated above and to pass an appropriate order after giving due opportunities to the assessee". The observations of the Id. Pr. CIT, Delhi-07, New Delhi are either factually incorrect or legally untenable. 2. Briefly stated facts of the case are that the appellant is a company. The return o .....

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h. Aseem Kumar Gupta and his group. As per the said information, the appellant was another beneficiary of accommodation entry to the extent of ₹ 4 lakhs received vide cheque no. 797383 drawn on ABN Amro Bank on 3rd February, 2006 issued by M/s Moderate Credit Corporation Ltd. The reasons recorded for reopening the assessment are as follows: Reasons for re-opening the case in the case of M/s Pure Plast Ltd., A.Y.-2006-07 Information has been received that a survey operation u/s 133A was con .....

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t cash from the beneficiaries. The case was deposited in the bank accounts and cheques were then issued to the beneficiaries. In order to disguise his transactions as genuine, Shri Aseem Kumar Gupta has been following 'layering' of accounts, whereby cash was introduced in various bank accounts in the names of proprietary concerns of his employees and beneficiaries were issued cheques from one of his intermediary company after routing the funds among several intermediaries. The above name .....

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e that the assessee's income amounting to ₹ 4,00,000/- which was chargeable to tax, has escaped from the assessment for Asstt. Year 2006-07. I am also satisfied that it was on account of failure on the part of the assessee to disclose truly and fully all the material facts necessary for the assessment for above assessment year, that the income chargeable to tax to the tune of ₹ 4,00,000/- has escaped assessment with the meaning of section 147 of the Income Tax Act, 1961. Since, f .....

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under Section 143(3) r.w.s. 147 of the Act at a total income of ₹ 1,01,300/- without making any addition on item for which reasons were recorded for re-opening assessment. Subsequently, the ld. CIT(A) had issued a show cause notice dt. 6th January, 2015 under Section 263 of the Act calling upon the appellant to show cause as to why the assessment order passed cannot be set aside as the Assessing Officer had failed to examine the genuineness of the share application money received of ͅ .....

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d an order under Section 263 of the Act, dt. 12 March, 2015, setting aside the matter to the file of the Assessing Officer for fresh examination of the issue of receipt of share application money. Being aggrieved, the appellant is before us with the present appeal. 3. The ld. Counsel for the appellant made a vehement argument that the issue of receipt of share application money was examined by the Assessing Officer and after considering the details filed by the assessee such as the confirmation .....

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ention to the questionnaire dt. 2nd July, 2012 issued by the Assessing Officer during the course of reassessment proceedings wherein vide query nos. 18 to 20, following questions were raised: 18. Please furnish a chart of opening balance of share application money received during the year paid back during the year and closing balance. 19. Details of Share Application money introduced during the year with names/addresses/proofs of identity/Ward-Circle/PAN no./confirmations of subscribers. Give a .....

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e ld. CIT-DR placed reliance on the order of CIT passed under Section 263 of the Act. 6. We heard the rival submission and perused the material on record. In this appeal, we were called upon to adjudicate whether the CIT had validly exercised his power of revision vested under the provisions of Section 263 of the Act or not. From the reasons recorded for issuing of notice under Section 148 of the Act, it is clear that the notice was issued to assess the amount of ₹ 4 lakhs received from M/ .....

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vise that reassessment order with the intention of bringing into the tax some other items which do not form part of the reasons recorded at the time of issuing notice under Section 148. The identical issue had come up before the Hon ble Jurisdictional High Court in the case of CIT Vs. Software Consultants, [2012] 21 taxmann.com 155 (Del): 341 ITR 240, wherein the Hon ble Jurisdictional High Court after considering the ratio laid down by the Hon ble High Court in the case of Ranbaxy Laboratory Lt .....

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