GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (3) TMI 419 - ITAT DELHI

2016 (3) TMI 419 - ITAT DELHI - TMI - Reopening of assessment - sufficiency or correctness of the material - Held that:- When no assessment u/s 143(3) of the Act was completed, there was no information available on the file of the Assessing Officer for verification whether any credit was introduced by those two creditors either by way of investment or loan or in any other forms. The AO while recording reasons verified that the information belonged to the assessee and it belonged to the relevant .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cords were available with the AO before issue of notice u/s 148 of the Act, whereas in the case of assessee, the return was processed u/s 143(1) of the Act only and no scrutiny assessment was completed before issue of notice u/s 148 of the Act, thus, the ratio of the said decision is not applicable of the fact of the case of the assessee.

We also agree with the contention of ld Sr DR that sufficiency or correctness of the material cannot be considered at the stage of issuing notice u .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l, C.A For the Respondent : Smt. Anima Barnwal, Sr. DR ORDER Per O. P. Kant, A. M. These two appeals of the assessee are directed against the two separate orders of the Ld. CIT(A)-XI, New Delhi, dated 25/01/2011 and 14/06/2013 . The first appeal is against sustainence of findings made in the assessment order u/s 143(3) / 147 the Act and the second Appeal is against sustainence of the penalty levied u/s 271(1)(c) of the Act. Both the appeals pertain to the same assessment year, and thus heard tog .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

barred by limitation and the impugned assessment order is liable to quashed as unsustainable, both on facts and in law. 2. The Respondent has not replied to the objection specifically raised by the assessee during the course of proceeding therefore impugned order passed ought to have been set aside by Ld. CIT(A) and failure to do so has vitiated the impugned order. 3. On the facts and in the circumstances of the case, the order of Reassessment having been passed in violation of natural justice .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er may be vacated and demand may be deleted. 5. Ld. CIT(A) erred in upholding the illegal additions of ₹ 1,00,000/- u/s 68 by treating unexplained income by the Respondent as justified ignoring the fact that the amount was received on account of sale of shares and also ignoring the records, documents and explanation already filed before the ITO which were not properly verified and accepted by him. Hence, the order may be vacated and demand may be deleted. 6. Ld. CIT(A) has also erred in up .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assessee filed its original return of income on 31.10.2002 declaring an income of ₹ 2,170/- and the case was processed u/s 143(1) of the Act. Subsequently, on receipt of information from the Director of Income Tax (Investigation), New Delhi that the assessee was a beneficiary of accommodation entries / bogus transaction from two parties namely M/s Arpit Sales Corporation & M/s. Harish Kumar & Sons (HUF), the Assessing Officer (AO) re-opened the case of the assessee by way of issuin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessing Officer collected copies of bank statement of those two parties from the banks and found that cash was deposited in their bank accounts just before issue of cheques to the assessee and in absence of any explanation from the assessee in this respect , he held that the assessee obtained cheques in lieu of the cash amount paid to those parties and, accordingly he made an addition of ₹ 2,00,000/- for unexplained cash credit received in the name of M/s Harish Kumar & Sons (HUF) and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Aggrieved, the assessee is before the Tribunal. 5. In ground No. 1, the assessee has raised issue of jurisdiction u/s 147 to 151 of the Act and in grounds No. 2 and 3, the assessee has raised issue of not dealing his objections and violation of natural justice by the CIT(A). 6. Before us the ld. AR of the assessee submitted that the Assessing Officer recorded the reasons in mechanical manner without application of mind and thus reopening of the assessment was bad in law and beyond jurisdiction. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Hon ble Supreme High Court in the case of Raymond Woollen Mills 236 ITR 34. 7. 1 We have heard the rival submission and perused the material on record. The ld. CIT(A) has dealt various legal issues raised in respect of the jurisdiction as under : 3.0 Justification for re-opening assessment :- The first issue to be considered is whether the AO could lawfully assume jurisdiction to reopen the assessment u/s 147 of the Act. Since the initial assessment was made u/s 143(1) of the Act, the proviso to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessment. It is further well-settled that for the purposes for deciding whether the jurisdiction has been properly assumed or not, what is necessary is that there should be some material for prima-facie formation of the belief that there has been escapement of income on account of omission or failure on the part of the assessee to disclose fully or truly all the material facts necessary for the assessment. The belief, which was formed by the AO assuming the jurisdiction, must be held bona fide a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

st there was no reverse claim by the appellant. The reasons were provided to the appellant and thereafter repeated adjournments were allowed to the appellant. This shows that the recorded reason was duly communicated to the appellant. Neither it was contested nor it was adduced as ground that recorded reason was not supplied to the appellant, rather it was the appellant who repeatedly failed to produce the Director of the investing companies before the AO and to establish the identity, creditwor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed the attention of the AO. 3.4 The AO had material for forming the belief that the appellant has nto disclosed ₹ 3,00,000/- from HKSH & ASC. The fact that the AO could prima-facie form such a belief would also be evident from the material available on record. Further it has already been stated that the order u/s 143(1) of the Act was conspicuously silent regarding the said issue as there is no such scope in 143(1). From the above facts, it cannot be said that the AO had no material fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

escaped assessment and such decision of the AO cannot be faulted. Accordingly, the contention that there was no material for formation of the belief as postulated u/s 147 to re-open the assessment cannot be sustained. The initiation of proceeding of relevant assessment is accordingly upheld. 3.5 In the assessments for the relevant year, the appellant has never disclosed the amount and offered the same for taxation. The recorded reason however is that the appellant has introduced unaccounted mon .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s not sustainable. Further there is no bar in the Act or any of the cases so far reported tha the AO cannot receive information from DIT (Inv.). The only thing is to be seen that it should be his satisfaction and that of nobody else. The satisfaction was also duly recorded by the AO. 7.2 The fact that no assessment u/s 143(3) of the Act was completed in the case of the assessee before issue of notice u/s 148 of the Act is not disputed by the parties. In our view, when no assessment u/s 143(3) of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r he recorded satisfaction that he had reason to believe that there was a escapement of income in the case , therefore, in the circumstances it cannot be said that AO has not applied his mind. In the case of ITO vs. Comero Leasing & Financing Pvt. Ltd. (Supra) cited by the ld. AR, the assessment was completed and the records were available with the AO before issue of notice u/s 148 of the Act, whereas in the case of assessee, the return was processed u/s 143(1) of the Act only and no scrutin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s passed a well reasoned order on the issue in dispute and there is no infirmity in his findings. Thus, we uphold the finding of the Ld. CIT(A) in impugned order that notice issued by the AO under section 148 of the Act was in accordance to law , and accordingly, we dismiss grounds No. 1,2 & 3 of the appeal. 9. In grounds No. 4 to 5, the assessee has raised the issue of addition of ₹ 3,00,000/- as unexplained cash credit u/s 68 of the Act by the AO and upheld by the ld. CIT(A). 10. Bef .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. Whereas on the other hand, the ld. Sr DR relying on the orders of the lower authorities, submitted that the assessee not only failed to produce the required evidences before the ld. AO but also could not produce before the ld. CIT as well as and thus, the addition sustained by the CIT(A) should be upheld. 11. We have heard the rival submission and perused the material available on record. We find that the CIT(A) in para 5.16 of his order has observed as under :- ………&hellip .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

whether there is any time left for initiation of proceeding in case of such creditor/share applicant. In any case the initiation if any, of proceeding in case of such creditor/share applicant is nothing to do with the invoking of provision u/s 68 in case of the appellant. All the prerequisites for invoking the provision is clearly available in the instant case and to that extent the action of the AO is quite justified. In such type of cases, every case has to be decided on the facts of the part .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

12-7-2017 UTGST Rate

12-7-2017 UTGST Rate

12-7-2017 IGST Rate

More Notifications


Latest Circulars:

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

13-7-2017 Central Excise

13-7-2017 Customs

7-7-2017 Income Tax

7-7-2017 Goods and Services Tax

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version