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TMI Blog2017 (3) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... mind by Assessing Officer in forming the belief for reopening of assessment u/s. 147 of the Act. 4. That the original assessment was completed u/s. 143(3) and the notice issued u/s 148 is beyond four years. Hence, the same is illegal, bad in law, without jurisdiction and bared by time as there is no failure on part of Assessee to produce relevant facts fully and truly. 5. That on the facts and circumstances of the case, there is no allegation as to any failure on the part of Assessee to produce material facts truly and as such notice issued after four years from the end of relevant assessment year is illegal, bad in law and without jurisdiction. 6. That the notice u/s 148 is issued only on the basis of report received from Directorate of Income Tax (Inv.) without any independent application of mind. The reasons have been recorded are in routine and casual manner. 7. That the notice u/s 148 has been issued for verification and examination which is not permitted by law therefore the notice issued u/ s 148 is illegal and bad in law. 8. Without prejudice, no approval has been obtained from the component authority as required u/s 151. Hence the notice issued is illegal, bad in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y beneficiaries. Accordingly, the notice u/s.148 of the I.T. Act, 1961 was issued on 21.3.2013 after obtaining approval u/s.151(2) by the Addl. CIT, Range-5, New Delhi who has given her approval vide her letter dated 21.3.2013. In response to the same, nobody attended nor any return was filed. Notice u/s. 142(1) dated 25.11.2013 was issued fixing the date of hearing on 4.12.2013. And again in response to the further notice dated 17.12.2013 the AR of the assessee attended the proceedings and filed a letter dated 17.12.2013 requesting therein that the return filed u/s. 139 may be treated as filed in response of notice issued u/s. 148 of the I.T. Act, 1961 and also submitted copy of assessment order dated 24.12.2008 passed u/s. 143(3) of the I.T. Act for the assessment year 2006-07. Thereafter, the AO completed the assessment u/s. 147/143(3) of the I.T. Act, 1961 vide his order dated 28.2.2014 at Rs. 49,00,080/- and made the addition of Rs. 48,04,000/- u/s.68 being bogus accommodation entries and Rs. 96,080/- u/s 69C being expenditure incurred to arrange accommodation entry. 3. Against the above order dated 28.2.2014, assessee filed an appeal before the Ld. CIT(A), who vide impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VI(2)/Information Sharing/2012-2013/256 dated 12.03.2013 wherein it was suggested that notice u/s 148 was required to be issued to bring the tax the undisclosed income regarding the accommodation entries obtained by beneficiaries. Accordingly, the notice u/s.148 of the I.T. Act, 1961 was issued on 21.3.2013 after obtaining approval u/s.151(2) by the Addl. CIT, Range-5, New Delhi who has given her approval vide her letter dated 21.3.2013. In response to the same, nobody attended nor any return was filed. Notice u/s. 142(1) dated 25.11.2013 was issued fixing the date of hearing on 4.12.2013. And again in response to the further notice dated 17.12.2013 the AR of the assessee attended the proceedings and filed a letter dated 17.12.2013 requesting therein that the return filed u/s. 139 may be treated as filed in response of notice issued u/s. 148 of the I.T. Act, 1961 and also submitted copy of assessment order dated 24.12.2008 passed u/s. 143(3) of the I.T. Act for the assessment year 2006-07. Thereafter, the AO completed the assessment u/s. 147/143(3) of the I.T. Act, 1961 vide his order dated 28.2.2014 at Rs. 49,00,080/- and made the addition of Rs. 48,04,000/- u/s.68 being bogus acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the I.T. Act and not u/s. 151(2) of the I.T. Act, because according to section 151(2) in the cases other than the case fallen under sub-section (1) of Section 151, no notice shall be issued u/s. 148 by the AO, who is below the rank of JCIT, unless the JCIT is satisfied on the reasons recorded by such AO, that is a fit case for the issuance of such notices. Keeping in view of the facts and circumstances explained above, I am of the view that the case is fallen u/s. 151(1) of the I.T. Act. In the present case, the case of the assessee has been reopened the assessment after the expiry of 4 years and in the present case of assessee the approval/satisfaction should be from the Chief Commissioner or Commissioner only. However, the case of the assessee has been reopened and notice u/s. 148 has been issued with the approval of the Addl. CIT, therefore, the notice u/s. 148 is bad in law and is quashed. My aforesaid view is fortified by the Hon'ble Delhi High Court decision in the case of CIT vs. SPL's Sidharth Limited Division Bench 345 ITR 223 wherein it has been observed and held as under:- "6. It is relevant to point out that sub-section (1) and sub-section (2) of section 151 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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