TMI Blog2015 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... M This is an appeal filed by the Assessee is directed against the Order of the Ld. CIT(A)-XXIV, New Delhi dated 28.9.2012 for the asstt. year 2007-08. 2. The following grounds have been raised in the Appeal. Validity of Reopening u/s. 148 1. That on the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in not quashing the reopening action of the AO being made in contravention of jurisdictional conditions stipulated u/s. 147 to section 151 of the Act. 2. That on the facts and in the circumstances of the case and in law, form RTI reply dated 17.6.2014, it is admitted by AO that reasons were not communicated to appellant before conclusion of assessment proceedings which goes to the root of the matter and vitiates the entire proceedings. 3. That on the facts and in the circumstances of the case and in law, from reasons stated in RTI reply dated 17.6.2014, it is manifest that same do not amount to reasonable belief and there is total lack of application of mind and tangible material. 4. That on the facts and in the circumstances of the case and in law, appellant has not been provided the opportunity to rebut and confute the reopening and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the money was collected and kept in the locker one week before the search at his residence on 07.07.2005. The assessee further stated that his source of income was from running a Dhaba in Maya Enclave. He further stated that he earned approximately ₹ 3 to 4 lacs from the passport work which he did for nine years. He stated that he was filing his return of income showing business in the name of M/s. Dhawan Enterprises, which did not exist. The locker was opened on 8.6.2006 in the presence of the assessee, his wife Smt. Anju Dhawan, Sh. Rajiv Wahi, Inspector, CBI and Dy. Manager, Accounts in SBI Subhash Nagar, New Delhi Sh. Ravi Chopra. This information was passed on to the AO, who issued notice u/s. 148 for AY 2007-08 on 2.6.2009, since the assessment proceedings for that year had already been completed by that time. Thereafter, notice u/s. 143(2) dated 08.07.2009 was served on the assessee. In response, the assessee filed a copy of return which had already been filed for A.Y. 2007-08 declaring a total income of ₹ 1,24,916/-. With regards to cash of ₹ 7,49,000/-, the AO issued a query letter to the assessee, who replied that out of this amount ₹ 2,50,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR relied upon the order passed by the Ld. CIT(A) on the issue in dispute. 8. I have heard both the parties and perused the records. I find that the AO has recorded the reasons for belief that income has escaped assessment as under. The same is attached with the Paper Book filed by the assessee. Reasons for the belief that income has escaped assessment: 1. An information has been received from CBI, New Delhi vide letter No. 3/6(a)2004 SCU/V/SCR.II/3015 dated 20.7.2007 that Shri Kamal Dhawan has kept the cash of ₹ 749,000/- and jewellery of 800 grams in locker No. 33, SBI, Subhash Nagar, New Delhi. 2. On the basis of above information and perusal of asstt. records, it is found that assessee has not shown any cash in hand nor in the books of accounts even he has not shown any jewellery in the books of accounts. 3. On the basis of information as per para 1 above, I have reason to believe that assesee has not disclosed true and correct particulars of his income and income has escaped assessment is likely to exceed more than ₹ 100,000. Notice u/s. 148 is required to be issued to assessee for asstt. year 2007-08. Sd/- (S.P. Sachdeva) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons are asked for, the AO is bound to furnish the reasons within a reasonable time. Thus the sine qua non for issuance of a notice under section 148 of the I.T. Act is recording of the reasons by the AO. In our view recording of the reasons and furnishing copy thereof to the Assessee when asked is not an empty formality. If the reasons recorded and a copy thereof required to be furnished to the assessee on demand the assessee would be entitled to show that the reasons recorded were factually incorrect. Furthermore, the power of the AO to proceed with the Assessment proceedings would be limited by the reasons recorded by him. He would be assessing or reassessing the income of the assessee only on the reasons recorded by him and cannot travel beyond the reasons and continue the proceedings of assessment on different reasons. 9.2 In the background of the aforesaid discussions and precedent relied upon, I am of the considered view that only effective ground in this appeal is reassessment proceedings u/s. 148 of the I.T. Act, the Assessee has reiterated that reassessment proceedings are illegal and without jurisdiction in the absence of any tangible evidence or material in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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