9911796707
TMI Blog2016 (7) TMI 946X X X X Extracts X X X X X X X X Extracts X X X X ..... to appreciate that the provisions of Section 147 of the Ct were not applicable and the reassessment proceedings were void, illegal and invalid; 3. That the Commissioner of Income-tax (Appeals)- erred in holding that the initiation of the reassessment proceedings u/s 148 of the Ct was valid. He failed to appreciate that the Assessing Officer had no jurisdiction, competence and/or authority to initiate the reassessment proceedings; 4. That the Commissioner of Income-tax (Appeals)- failed to appreciate that there was no new/fresh information/material in the possession of the Assessing Officer justifying that the income liable to tax has escaped assessment; 5. That the Commissioner of Income-tax (Appeals) failed to appreciate that was no reason justifying the reopening of the assessment. 6. That the Commissioner of Income-tax (Appeals) failed to appreciate that there was no failure to disclose fully and truly all the material facts. 7. That the Commissioner (Appeals) failed to appreciated that it was a case of change of opinion; 8. That the Commissioner (Appeals) failed to appreciate that said notice u/s 148 of the Act was illegal being issued without the requisite a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate reference therein to the case of the Assessee and make its submissions in regard to validity of reassessment proceedings initiated in its case. The Assessees also specifically requested the Assessing Officer to make available a copy of proposal put-up for approval of reopening the assessment and copy of approval of joint commissioner of income tax. It was not apparent from the reasons that necessary approval had been sought. Copy of reason is given in the paper book on pages 13 to 15. Copy of letter dated 21.05.2008 of the assessee company is on pages 16 to 17. 6. Pursuant to the request made to the Assessing Officer vide letter dated 21 05 2009 for submitting the copies of documents, the Assessing Officer provided the copes of the some of the documents to the representative of the company on 10.07.2009. Copies of some of the documents, however, were nor provided in spite of repeated request by the representative of the assesse company to the assessing officer. The Assessing Officer without providing copy of remaining documents, issued notices under section 142(1) and 143(2) of the Act dated 01.09.2009 requiring the presence of the Assessee in connection with assessment procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Bansal were recorded in 2003 whereas the notice has been issued to the Assessee Company on 30.03.2009. Accordingly, it can be said that the Assessing Officer was not confident about the correctness of the allegation of the escapement of income in the case of the Assessee on the basis of the available material and therefore, the notice had not been issued earlier. Same had been issued only on 30.03.2009 as the limitation of time was expiring on 31.03.2009. Copy proposal put up to the Jt. Commissioner of Income Tax for approval for reopening of Assessment and his approval have not been provided to the Assessee Company and therefore, it appears that notice has been issued without approval of JCIT and/or it is not known to the Assessee whether approval had been granted by the JCIT after considering the facts of the case of the Assessee. In conclusion, reopening of assessment in the case of the Assessee Company was not legally valid. Therefore, the Assessing Officer was requested to drop the proceedings. Reference in the aforesaid letter was also specifically made by the Assessee Company to the decision of supreme court in the case of GKN Drive-shaft India Limited Vs. CIT, 259 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital Limited in the books of the Assessee Company along with the copies of bills and contract notes regarding the share trading transactions were submitted to the Assessing officer. A copy of the aforesaid letter along with copies of ledgers accounts and copies of bills and contract notes are given in the paper book on pages 81-163. 11. The Assessing Officer had not appreciated the nature of transactions and genuineness thereof. He, has mentioned in the assessment order, noted on 25 11 2009 That Shri Trilok Chand Bansal had stated in the statement recorded before Addl. DIT (Inv) that entries were provided against cash payments. The representative of the Assessee Company specifically requested hirn during the course of hearing to make available Shri Trilok Chand Bansal and also Shri Mahesh Garg for cress examination by the Assessee Company in case the Assessing Officer is relying upon their statements in regard to the entries under reference. It was also submitted that in their statements there is no specific reference to the effect that the entries between M/s S.J. Capital Limited were not relating to genuine transactions. The Assessing Officer however had not taken note of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13.0,0.2006 to the Assessing Officer. It is also submitted that investigations had commenced on the basis of survey in the case of M/s Gurcharan Jewellers. In paras 2 to 4 Modus Operandi adopted by the entry providers has been discussed. Para 5 of the reasons recorded by the Assessing Officer states that investigation carried out by DIT, Investigation. New Delhi has assailed genuineness of transactions, whether shown by beneficiaries as inflow of share capital or receipt of gifts or consideration for sale - purchase. It has also dealt with a body blow to the credit worthiness of the persons providing the credit entries. Para -6 refers to four credit entries stated to be in bank account of the Assessee. There is no reference, however, of any document / information on the basis of which the information has been received by the Assessing Officer in respect of entries. Further there is reference to the statements and affidavit of Shri Mahesh Garg, Shri Vinod Garg, Shri Trilok Chand Bansal and Shri Deepak Kumar Chang:a given before Addl. DIT, Investigation. Unit I, New Delhi, In all the paragraphs mentioned above there is no specific reference to any document or information on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
