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2019 (7) TMI 292

..... e Appellant to fully and truly disclose material facts etc.- HELD THAT:- We find that assessee has filed the Objection letter dated 15.4.2013 before the AO stating therein “There is no escapement under assessment completed. The initiation of proceedings u/s. 147 are unwarranted.” which shows that the AO has not decided the objection neither by a separate order nor in the final assessment order dated 21.3.2014, which is very essential to decide the same before completing the assessment and against the spirit of the direction of the Hon’ble Supreme Court of India laid down in the decision of the GKN Driveshafts (India) Ltd. vs. ITO a [2002 (11) TMI 7 - SUPREME COURT] and also Ld. CIT(A) has not taken into consideration the o .....

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..... That on the facts and circumstances of the case and in law, the Ld. AO had grossly erred by not disposing off the objections raised by the Appellant to the reasons served by the Ld. AO for reopening the assessment and grossly violated the direction of the Hon ble Supreme Court laid down in the decision of GKN Driveshafts (India) Ltd. vs. ITO and others (2003) 259 ITR 19 (SC). 4.1. That having regard to the facts and circumstances of the case and in law, Hon'ble CIT(A) has not taken into consideration the objection filed by the Appellant against the 'reasons to believe' stated by the Ld. AO; 5. That on the facts and circumstances of the case and in law, the addition made under Section 37 of the Act amounting to ₹ 4,53,200/ .....

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..... hich had received commission from various companies including the assessee company as mentioned in its ledger account, was providing bogus entries to these companies, as no work was actually executed on payment of commission by these companies. It was also mentioned by him that the money received from these companies was received by cheque and was refunded after deducting the commission. based on this information, the AO issued notice u/s. 148 of the Income Tax Act, 1961 (in short Act ) on 30.3.2013 and on due consideration of the assessee s reply in this regard made an addition of ₹ 4,53,200/- towards payment made to M/s Tuticorin Tremix Pvt. Ltd. by holding it as bogus. Aggrieved with the assessment order, assessee appealed before t .....

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..... . We find that assessee has filed the Objection letter dated 15.4.2013 before the Assessing Officer stating therein There is no escapement under assessment completed. The initiation of proceedings u/s. 147 are unwarranted. which shows that the Assessing Officer has not decided the objection neither by a separate order nor in the final assessment order dated 21.3.2014, which is very essential to decide the same before completing the assessment and against the spirit of the direction of the Hon ble Supreme Court of India laid down in the decision of the GKN Driveshafts (India) Ltd. vs. ITO and others (2003) 259 ITR 19 (SC) and also Ld. CIT(A) has not taken into consideration the objection filed by the assessee against the reasons to believe s .....

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..... e assessment years, viz., 1992-93 1993-94, 1994-95, 1997-98 and 1998- 99, are now the subject-matter of these appeals. We see no justifiable reason to interfere with the order under challenge. 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 a 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. Ir. the instant case, as the reasons have been disclosed in these proceedings, the Assessing .....

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