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TMI Blog2018 (4) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... w have erred by passing the order and upholding the order without disposing the, objection of assessee against the notice U/s 148 of IT Act. 3. That on the fact and circumstances of the case and in law and in view of the matter, The learned authority below have erred by upholding the order by when the reason recorded U/s 147 of IT Act by the one officer and the notice U/s 148 of IT Act was issued by another officer different dates." 2. The following additional grounds have also been taken: "5.1 That in any view, the proceedings initiated u/s 147 of IT Act by issue of notice u/s 148 of IT Act and the assessment framed u/s 143(3) of the IT Act is wrong, illegal and bad in law. That the reasons recorded are vague, merely a suspicion, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons and those persons have shown such money as gift in their accounts. The details of the cheques issued from these account holders on their given addresses to the bank were returned back unserved. The cases of those beneficiaries were identified. There is information that the kingpin of these money laundering is one Shri Subhash Khurshiramani who had opened 100 of such account in fictitious and non exiting names deposited cash and issued cheques for hundis and gifts. The beneficiaries had obtained gift or hundis by paying, accounted cash to Shri Subhash Khushiramani who deposited them into his numerous fictitious bank accounts and then issued cheques for hundis or for gift. 2. In the above background, returns of various assessee filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction are as under: 5. Here no gift deed has been filed by the assessee. From the perusal of above capital account, it is noticed that the assessee has not disclosed the identity of the donor, his address, name of the bank, details of the cheque/draft or other mode of receipt of alleged gift or whether the donor had money in his account at the time when alleged gift was given. Thus, the basis requirement for a sum; to be accepted as a gift has not been disclosed in the return of income. It is a credit of money simplicitor in the capital account without paying taxes thereon. This is alternatively as availability of money in the hands of the assessee or in his bank account, which is not explained by the assessee with primary evidence. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. In 'GKN Driveshafts' (supra), the Hon'ble Supreme Court, in this regard, has observed as follows: "However, we clarify that when a notice under section 148 of the Income Tax Act is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. In the instant case, as the reasons have been disclosed in these proceedings, the Assessing Officer has to dispose of the objections, if filed, by passing a speaking order, before proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in 'GKN Driveshafts' (supra) would entail nullifying the proceedings. As such, the CIT(A) is incorrect on this score also. 11. In 'KSS Petron Private Ltd. vs. ACIT', order dated 03.10.2016 in ITA No. 224 of 2014, the Hon'ble Bombay High Court has held as under: "We note that once the impugned order finds the Assessment Order is without jurisdiction as the law laid down by the Apex Court in GKN Driveshafts (supra) has not been followed, then there is no reason to restore the issue to the Assessing Officer to pass a further/fresh order. If this is permitted, it would give a licence to the Assessing Officer to pass orders on re-opening notice, without jurisdiction (without compliance of the law in accordance with the procedure), yet the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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