9911796707
TMI Blog2020 (12) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... n' of AO or of the superior authority who accorded approval in a mechanical manner, in as much as, that same is merely on the basis of AIR information to conduct roving enquiries and hence subsequent proceedings are void-ab-initio and consequent order illegal. 2. Because, without prejudice to above and as an alternative learned commissioner of income tax erred, in sustaining the addition of Rs. 18.59 lakhs made u/s 68 of the Act, being the amount deposited in the bank ignoring the fact that provisions of s. 68 are not applicable to assessee and addition is against the said provision of law. 3. Because, learned commissioner of income tax also erred, in sustaining the said addition despite admitting that statement relied for the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 148 of the Act. The objections filed by the assessee against the reasons recorded were also addressed by the Assessing Officer. The assessment under section 147 read with section 143(3) of the Act was completed on 31/03/2014, after making addition of Rs. 20 lakh. The Ld. CIT(A) vide impugned order upheld the addition to the extent of Rs. 18.59 lakhs. Aggrieved, the assessee is in appeal before the Tribunal raising the grounds as reproduced above. 3. Before us, the Learned Counsel of the assessee submitted orally that ground No. 1 of the appeal may be admitted as additional ground raised by the assessee. According to him this ground being legal in nature and no investigation of the fresh facts is required, it is admissible in view of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity of meeting an additional point raised before it. Moreover, even though Rule 11 requires an appellant to seek the leave of the Tribunal, it does not confine the Tribunal to a consideration of the grounds set forth in the memorandum of appeal or even the grounds taken by the leave of the Tribunal. In other words the Tribunal can decide the appeal on a ground neither taken in the memorandum of appeal nor by its leave. The only requirement is that the Tribunal cannot rest its decision on any other ground unless the party who may be affected has had sufficient opportunity of being heard on that ground." 5. The learned DR was given sufficient opportunity of being herd on the issue being affected party. 6. The ground raised being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter dated 16/01/2012 issued to the assessee asking to explain source of deposits was without any authority of law. 7. The Learned DR, on the other hand, submitted that the Assessing Officer has validly initiated the proceeding under section 148 of the Act. 8. We have heard rival submission of the parties on the issue in dispute and perused the relevant material on record. In the case validity of the notice issued has been challenged on the grounds of reasons to believe not in accordance with law. To adjudicate the issue, the 'reasons to believe' recorded by the Assessing Officer are reproduced as under: 3. The reasons for, action u/s. 148 of the I.T. Act is given as under- "In this case, as per AIR information available with the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eable to tax has escaped assessment. In other words, notice of reopening which is issued barely for making fishing inquiry, would not satisfy this requirement. 8. With this background, we may revert to the reasons recorded by the Assessing Officer. Information from the Value Added Tax Department of Mumbai was placed for his consideration. This information contained list of allegedly bogus purchases made by various beneficiaries from Hawala dealers. Assessee was one of them. As per this information, he had made purchases worth Rs. 3.21 crores (rounded off) from such Hawala dealers during the financial year 201011. According to the Assessing Officer, this information 'needed deep verification'. 9. If on the basis of information made ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sits and, therefore, he wanted to investigate further to find out the actual source of the cash deposits. At the stage of issue of notice, the Assessing Officer was not sure whether income had escaped to tax or not. No notice under section 148 of the Act can be issued merely on such suspicion. There has to be a reasonable material before the Assessing Officer on the basis of which a reasonable person can make requisite belief. In the instant case, there is lack of reasonable material to form a reasonable belief that income has escaped tax. Under the circumstances, the action of the Assessing Officer of reopening assessment in exercise of the power under section 148 of the Act cannot be sustained. Accordingly, we quash the re-assessment proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
