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ITO, Ward 33 (3) , New Delhi Versus Rajeev Boobna

2015 (12) TMI 188 - ITAT DELHI

Validity of assessment completed u/s 144 without - valid service of notice u/s 142(1) questioned - addition on account of cash deposited in bank - Held that:- The notice u/s. 142(1) dated 05.11.2007 was issued by ITO ward 41(4), New Delhi to the assessee through speed post to direct the assessee to furnish his return of income for A.Y. 2005-06. The said notice was not received back undelivered. The second show cause notice under Section 142(1) dated 07.12.2007 was issued and the same was also no .....

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uld have been allowed by the Ld. CIT(A) after giving opportunity to the Assessing Officer under Rule 46A(3) of the Income Tax Rules, 1962. Though the AR submitted that there was more than 8 months given to the Assessing Officer to send his remand report, in the interest of justice it will be proper to give time to look into the specific books of accounts including inter alia cash book of the assessee and fresh opportunity should have been given to the Assessing Officer while coming to the conclu .....

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venue against order dated 01.03.2011 passed by CIT(A)-XXVII, New Delhi for the Assessment Year 2005-06. 2. The Grounds of appeal are as follows:- 1. On the facts and circumstances of the case, the Ld. CIT(A) had erred in deleting the addition made to the extent of ₹ 37,10,343/- out of ₹ 38,64,940/- on account of cash deposited in bank. 2. On the facts and circumstances of the case, the Ld. CIT(A) had erred in deleting the addition by ignoring and overlooking the facts as mentioned in .....

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A.O was unserved and assessment completed u/s 144 without valid service of notice u/s 142(1) of the I.T Act 1961 hence the assessment is bad in law and void ab initio which is liable to be quashed. 3. The facts of the case are the assessee is engaged in the business of sale/purchase of mobile phones. The assessee filed his return of income for the assessment year 2005-06 on 31/10/2005 declaring income of ₹ 93,749/-. The assessee in his return showed his address as 8/23, 3rd Floor, West Pa .....

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r, G-7 Regent Mall, Hardhiyan Singh Road, Karol Bagh, New Delhi 11005. The assessee stated to have not received the notice u/s 142(1) dated 5/11/2007 and show cause notice dated 7/12/2007. The Assessing Officer assessed the income of the assessee u/s 144 of the Income Tax Act 1961 vide assessment order dated 31/12/2007 and added undisclosed investment/expenditure of the assessee at ₹ 38,64,940/- being cash deposited with UTI Bank, Vasant Kunj, New Delhi. The assessee went in appeal before .....

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IT(A) allowed the appeal of the assessee. 4. Before the appellate proceedings, assessee made an application for admission of additional evidence under Rule 46A of the Income Tax Rule 1962. The Assessing Officer vide its letter dated 12/7/2010 submitted that the case of the abovementioned assessee has already been transferred to Ward 31(4), New Delhi vide office letter dated 23/8/2010 issued to A.O Ward 31(4), New Delhi. The Ld. CIT(A) asked Assessing Officer s comments on the matter. The report .....

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d. CIT(A) admitted the additional evidence filed by the assessee under Rule 46A (1)(c) of the Income Tax Rules, 1962. 5. The Ld. CIT(A) further held that Assessing Officer failed to adduce any cogent evidence of service of notice issued u/s 142 of the Income Tax Act 1961 to the assessee before framing assessment u/s 142 of the Income Tax Act, 1961. Hence, the Ld. CIT(A) quashed assessment order u/s 144. As relates to treating aggregate sum of ₹ 38,64,94/- deposited into the bank account as .....

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granted relief of quashing of assessment order u/s 144 of the Income Tax Act, 1961, the additional evidence of the assessee was allowed by the Ld. CIT(A). 6. The DR submitted that as per the remand report which was annexed at Page No. 37 to 43 of the paper book, the notices were addressed to the assessee at Karol Bagh and assessee did not deny that the address was that of the assessee. The information received from the office of Chief Commissioner of Income Tax, Delhi to the Office of the Additi .....

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notice u/s 142 (1) dated 5/11/2007 was issued to the assessee vide speed post to direct the assessee to furnish his return of income for A. Y 2005- 06. The same notice was neither received back undelivered nor complied with. Nobody attended nor any written submission was filed on that date. Another show cause notice u/s 142(1) dated 7/12/2007 was issued to the assessee expressly conveyed to him that he had made cash deposits amounting to ₹ 38,64,940/-. The DR submitted that the notices we .....

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