9911796707
TMI Blog2017 (3) TMI 1052X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the binding decisions of the high court relied upon by the appellant while upholding the validity of such proceedings. 3. That reassessment proceedings initiated u/s 148 are void ab-initio since the reasons recorded are vague without reference to any material on record. There is no nexus or live link between the information/material and the formation of belief that there is escapement of income for the year under consideration and thus contrary to the settled legal position. The CIT(A) grossly erred in law in ignoring the binding decisions of the high court relied upon by the appellant while upholding the validity of such proceedings. 4. The CIT(A) erroneously decided the above legal issue on the basis of the information which was not available with the AO on the date when the reasons were recorded. 5. That reassessment proceedings initiated u/s 148 are void ab-initio since approval u/s 151 is not in accordance with law. 6. That assessment framed u/s 147 are bad in law since assessment is made without supplying the copy of reasons recorded despite repeated requests and therefore liable to be quashed. (Such reasons have been supplied only on application after the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the information a search & survey action was conducted by Unit-VI(2), New Delhi in the case of Shri Surendra Kumar Jain and Shri Virendra Jain on 14.09.2010. Various incriminating documents were seized and impounded." 5. The AO also extracted the report of Investigation Wing, New Delhi in para 3.2 of the assessment order dated 24.03.2014, for the cost of repetition, the same is not reproduced herein. The AO provided the reasons recorded vide letter dated 25.07.2013. The AO completed the assessment by making the addition of Rs. 20,00,000/- u/s 68 of the Act. The said amount was held to be introduced as share capital/share application money and share premium from undisclosed sources. 6. Being aggrieved the assessee carried the matter to the ld. CIT(A) and challenged the validity of the reassessment. However, the ld. CIT(A) did not find merit in the submissions of the assessee by observing in paras 9 to 15 of the impugned order as under: "9. Ground Nos. 1 to 4. Taking up the first issue raised by the appellant is regarding the validity of the reassessment proceedings u/s 147/148. I have considered the facts of the case, observations of the AO and submissions of the appellant. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not conclusively. Reliance is also placed on the Judgment of the Hon'ble Supreme Court in the case of PHOOL CHAND BAJRANG LAL AND ANOTHER VS. ITO & ANOTHER 203 ITR 456 (SC) the head note for which reads as below: "Sufficiency of reasons for reopening assessments is not for the court to judge. Section: 147(a) -failure to disclose truly and-fully material facts - cash loans -originally accepted as genuine subsequent information from A.O. of a company that its M.D. has confessed - he or his company has not advanced any loan to any person during the relevant period - subsequent information is 'definite, specified and reliable. Sufficiency of reasons for formation of belief is not for the court to judge. Reassessment notices are valid. [Applied/followed in- 208 ITR 196 (RAJ) : 208 ITR 266 (DEL): 209 ITR 01 (BOM) :209 ITR 135(BOM): Assam Forest Products (P) Ltd. Vs. CIT : 211 ITR 447 (SC): 214 ITR 669 (RAJ) : 221 ITR 538 (SC) :226 ITR 352 (GUH): 237 1TR 549 (BOM):248 ITR 493 (P&H) :ITO VS Selected Dalurband Coal Co. Pvt. Ltd. 217 ITR 597 (SC) :253 ITR 83 (DEL) 257 ITR 481 (Guj)] It has been held in a number of judicial pronouncements that what is necessary to re-open an asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order was never received by the company." 13. To verify this contention of the appellant the assessment records were called for and it is observed that a notices u/s 143(2) and letter enclosing the copy of reasons recorded dated 25.07.2013 are placed in the assessment folder. The dispatch No. for these are 1837 and 1838, the same that have been mentioned by the AO in the assessment order. Moreover, a perusal of the order sheet shows that on 07.03.2014 the AO has issued another notice u/s 143(2) and 142(1) and alongwith these a copy of the reasons recorded has once again been given to the appellant. Moreover, the Ld. Counsel for the appellant has replied to these notices on 12.03.2014 and thus, if the notices u/s 143(2) and 142(1) have been received by the appellant, since he has complied to the same on 12.03.2014, thus it can be safely presumed that the reasons recorded by the AQ have also been received by him alongwith these notices. Thus from the above it is evident that a copy of the reasons recorded for reopening the case have been given by the AO to the appellant before the completion of the assessment proceedings. Even the affidavit of the appellant is silent on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee reiterated the submissions made before the authorities below and also furnished the factual aspects which are reproduced verbatim as under: Facts Remarks 1. Notice u/s 148 dated 25.3.13 at page 20 of paper book It is addressed to New Delhi address which is the regd. office of the appellant co. It was sent to New Delhi address. 2. Copy of reasons recorded u/s 148 which was never supplied to the appellant in the course of assessment proceedings, (page 57 of paper book) It also shows the address of regd. office of appellant co 3. The appellant had always been filing returns at New Delhi and never filed any return at Faridabad The appellant vide letter dated 23.4.13 submitted before the AO the copy of the return filed at New Delhi. The AO also acknowledges the same in para 1 of his order. Instead of transferring the case to the AO at New Delhi, he chose to continue to assume the jurisdiction. (Copy of ITR at page 19) 4. The appellant, through its counsel, vide letter dated 14.5.13 sought the copy of reasons recorded u/s 148 It was never supplied and the AO kept silent till 6.3.14 when the appellant again requested for copy of reasons recorded, (copy of letter at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceiving the accommodation entry in order to effect payment of legitimate tax. Therefore, the addition made by the AO and sustained by the ld. CIT(A) was justified. 11. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is noticed that the AO in para 3 of the assessment order dated 24.03.2014 categorically stated that a detailed information regarding accommodation entry provided by Sh. Surender Kumar Jain to various beneficiaries companies was received from the office of Director of Income Tax (Inv.-II), New Delhi vide letter dated 15.03.2013. In the instant case, the AO issued the notice dated 25.03.2013 only after receiving the aforesaid information. Therefore, the reopening was done on the basis of Investigation Wing. The ld. CIT(A) also pointed out in para 5 of the impugned order that the information was received by the AO from Director of Income Tax (Inv.-II), New Delhi vide letter dated 15.03.2013. Therefore, it is clear that the AO issued the notice u/s 148 of the Act for reopening the assessment u/s 147 of the Act on the basis of information received from the Investigation Wing. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
