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TMI Blog2021 (1) TMI 670X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of Rs. 50,00,000/- made by the Assessing Officer is illegal as the Assessing Officer and ld. CIT (A) did not consider judicially the evidences proceedings. 2. That the reassessment Order passed u/s. 147/143(3) of the Act is illegal and void. The Learned CIT(A) erred in upholding the reassessment Order in spite of the fact that the learned Assessing Officer erred in issuing another notice u/s. 148 of the Act, dated 31st March 2016, whereas the proceedings were pending in pursuance of notice u/s. 148 dated 29.03.2016 issued by the Assessing Officer, as stated in the Assessment Order, page no. 2. No reassessment order was passed in pursuance of notice issued u/s. 148 of the Act, dated 31.03.2016, which was duly complied by the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isdictional ground, otherwise, also the learned Assessing Officer erred in treating the share application money received to the tune of Rs. 50,00,000/- from various corporate shareholders as escaped income without considering the evidences furnished by the appellant, as quasi judicial Officer." 3. The assessee has also raised additional grounds of appeal: "1. The proceedings u/s-147 of the Act initiated by the learned A.O. is illegal as the same has been initiated mechanically simply following communication from Investigation Wing, without independently applying his mind on the facts, and consequently, the Assessment Order is totally illegal and hence liable to be quashed. 2. That the assessment u/s. 147 of the Act is illegal, unlawful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example, as a result of a judicial decision given while the appeal is pending before the Tribunal, it is found that a non-taxable item is taxed or a permissible deduction is denied, we do not see any reason why the assessee should be prevented from raising that question before the tribunal for the first time, so long as the relevant facts are on record in respect of that item. We do not see any reason to restrict the power of the Tribunal under Section 254 only to decide the grounds which arise from the order of the Commissioner of Income-tax (Appeals). Both the assessee as well as the Department have a right to file an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply to appeals before the Tribunal also. 7. The view that the Tribunal is confined only to issues arising out of the appeal before the Commissioner of Income-tax (Appeals) takes too narrow a view of the powers of the Appellate Tribunal [vide, e.g., C.I.T., v. Anand Prasad (Delhi), C.I.T. v. Karamchand Premchand P. Ltd. and C.I.T. v. Cellulose Products of India Ltd. Undoubtedly, the Tribunal will have the discretion to allow or not allow a new ground to be raised. But where the Tribunal is only required to consider a question of law arising from the facts which are on record in the assessment proceedings we fail to see why such a question should not be allowed to be raised when it is necessary to consider that question in order to correctl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been filed in response to the notice issued. The assessment has been completed on 21.12.2016 making an addition of Rs. 50,00,000/- purportedly received the accommodation entry in the guise of share capital. 10. Before us, the ld. AR argued that the assessee has not been provided the copy of the reasons recorded and hence the assessment is nullity based on the ratio of Hon'ble Supreme Court in the case of GKN Driveshafts Pvt. Ltd. 259 ITR 18. 11. The ld. DR argued that the reasons have been duly supplied to the assessee. 12. This being a factual matter, we have obtained the assessment records and gone through the contents. 13. First, we have gone through the assessment order to examine whether the reasons recorded have been issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO on 28.04.2016. Further, the assessee has also sought the reasons recorded vide letter dated 23.11.2016. We also find that vide letter dated 04.11.2016, the AO has asked to furnish the explanation regarding the receipt of share premium but has not supplied the reasons asked hitherto. We have also gone through the letter dated 29.11.2016 wherein the objections of the assessee have been removed by the AO but the supply of reasons has not been mentioned there to. We have gone through the order sheets in assessment folder and could not find any noting pertaining to furnishing of reasons recorded to the assessee. We have also verified the records of the revenue and find that the letters filed by the assessee requesting for supply of reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X
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