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ACIT, Circle-14 (1) , New Delhi Versus Paramount Communication Ltd.

2016 (6) TMI 43 - ITAT DELHI

Reopening of assessment - whether the notice is barred by limitation? - Held that:- The undisputed fact is that the notice u/s. 148 was issued beyond the period of four years from the end of the Assessment Year in all the three cases. On the perusal of reasons recorded which are extracted hereinafter, we find that there is no whisper or an allegation that the assessee failed to make a full and true disclosure of all material fact necessary for assessment in its return of income.

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.No.-41/DEL/2015 - Dated:- 26-4-2016 - SHRI J. S. REDDY, ACCOUNTANT MEMBER AND SMT SUCHITRA KAMBLE, JUDICIAL MEMBER For The Appellant : Sh. Raman Kant Garg, SR. DR For The Respondent : Sh. Amit Goel and Sh. Saurabh Goel, CAs ORDER PER BENCH Theses appeals and cross objections are filed against the orders dated 14/1/2011 passed by CIT (A) XVII, New Delhi. 2. The grounds of appeals and Cross Objections are as follows:- I.T.A .No.-1812/DEL/2011 (A.Y. 2003-04) 1. That the Ld. CIT(A) has erred in law .....

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and the assessment order passed on the foundation of such notice is liable to the quashed. I.T.A .No.-1813/DEL/2011 (A.Y. 2004-05) 1. That the Ld. CIT(A) has erred in law as well as on facts and circumstances of the case in deleting the addition of ₹ 6,50,17,462/- made by the A.O on account of bogus purchases made by the assessee from M/s Kashish Impex Pvt. Ltd C.O .No.-40/DEL/2015 (A.Y. 2004-05) 1. On the facts and circumstances of case and in law, the commissioner of Income Tax (Appeal) .....

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Kashish Impex Pvt. Ltd. C.O .No.-41/DEL/2015 (A.Y. 2005-06) 1. On the facts and circumstances of case and in law, the commissioner of Income Tax (Appeal) erred in not holding that notice u/s 148 issued in this case is illegal, void, without jurisdiction and bared by limitation and accordingly the said notice and the assessment order passed on the foundation of such notice is liable to the quashed. 8. The original assessment order u/s 143(3) of the Income-tax Act 1961 was completed in this case .....

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tax Act was issued on 12/2/2009. In response to the said notice the assessee company submitted that it has already filed its return of income on 20/11/2003 and assessment was complete du/s 143(3) and further submitted that the same may be treated as return filed in response to notice issued u/s 148. Notice u/s 143(2) was issued on 22/9/2009 and in response to that, the assessee requested the Assessing Officer to provide copy of reasons recorded for reopening of assessment u/s 148. Accordingly, t .....

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de to the income of the assessee. The assessee filed appeal before the CIT (A). The CIT (A) partly allowed the appeals of the assessee. 9. The Ld. AR submitted that Ground No. 1 is common for all the assessment years in the revenue s appeals. In respect of assessee s appeal Ground No. 1 is common in all appeals. The assessee has made five fold arguments. 10. The first contention of the Ld. AR was that the notice is barred by limitation as the last date of issue of Section 148 notice was 31/3/200 .....

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g Officer who recorded the reasons for re-opening should issue the notice under Section 148 and whereas the reasons for reopening were recorded by one person and the notice u/s. 148 was given by a different person. He relied on the judgment of Hon ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. v. CIT (Delhi) 2009 308 ITR 38 for this preposition. The third contention of the Ld. AR is that Section 151 was not complied in all three assessment years as sanction for the re-open .....

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fer order of the case from one Ward to another Circle. The AR s contention was that the reopening could have been done by Assessing Officer of the ward and not by ACIT Circle 14(1) as he could not have assumed jurisdiction. without proper orders. The last and the fifth contention of the AR is that the reasons recorded cannot be construed as proper reasons as per Section 148 of the Act. 11. The Ld. DR while addressing all the contentions submitted that Section does not cast an obligation on the s .....

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ged as the CIT recorded I agree, yes . These words were suggest, application of mind by the CIT. He justified the reasons for re-opening of the assessment proceedings. He submitted that re-opening of assessment made by ACIT or ITO is in respect of their technical jurisdiction and is matter of administrative conveyance for which the Tribunal cannot interfere. 12. The Ld. DR further submitted that the reasons to believe is properly given by the Assessing Officer while re-opening the assessment. 13 .....

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ce u/s. 148 are extracted for ready reference: A.Y. 2003-04 Return declaring loss of ₹ 1,99,75,520/- was filed by assessee on 22.11.2003. Assessment u/s. 143(3) was completed on 24.03.2006 at a total loss of ₹ 1,24,75,520/-. Information was received from DRI. Regional Unit Jaipur and passed on this office that Central Excise Commissioner, Jaipur 1 detected bogus purchase made by assessee company from M/s. Kashish Impex Pvt. Ltd. and the information received for the period 17.9.02 to .....

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that Central Excise Commissioner, Jaipur 1 detected bogus purchase made by assessee company from M/s. Kashish Impex P Ltd and the information received for the period 17.9.02 to 20.05.05 and the amount of purchases (bogus) for the period under consideration amounted to ₹ 6.20 Crores In view of the above, I have reason to believe that income to the tune of ₹ 6.20 Crores has escaped taxation. Put up for approval and sanction for issue of notice u/s. 148 of Income Tax Act, 1961. A.Y. 200 .....

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ation amounted to ₹ 74.08 lakh In view of the above, I have reason to believe that income to the tune of ₹ 74.08 lakh has escaped taxation. The Hon ble Delhi High Court in case of Haryana Acrylic Manufacturing Co. v. CIT (Delhi) 2009 308 ITR 38 held as under: 20. In the reasons supplied to the petitioner, there is no whisper, what to speak of any allegation, that the petitioner had failed to disclose fully and truly all material facts necessary for assessment and that because of this .....

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bar would operate and no action under s. 147 could be taken. The reasons supplied to the petitioner does not contain any such allegation. Consequently, one of the conditions precedent for removing the bar against taking action after the said four year period remains unfulfilled. The notice dt. 29th March, 2004 under s. 148 based on the recorded reasons as supplied to the petitioner as well as the consequent order dt. 2nd March, 2005 are without jurisdiction as no action under s. 147 could be ta .....

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