TMI Blog2018 (12) TMI 1874X X X X Extracts X X X X X X X X Extracts X X X X ..... h is supported by the affidavit of the assessee. 3. We have heard the ld AR as well as the ld DR on the condonation of delay and carefully perused the contents of the affidavit wherein the cause of delay has been explained. It has been stated in the affidavit that the impugned order of the ld. CIT(A) was received by the assessee on 18/1/2018, however, in the mean time, the brother of the assessee expired on 11/3/2018 and also the assessee suffered from serious ailments of spondylitis for which the assessee was undergoing treatment at Jaipur and Delhi from 27/3/2018 onwards. The assessee has produced death certificate of his brother as well as medical record of the assessee showing that the assessee was undergoing treatment during the relevant period from the month of March to April 2018. Considering all these facts and circumstances of the case, we satisfy that the assessee has explained the reasonable cause for not filing the appeal within the period of limitation. Accordingly, we condone the delay of 99 days in filing the present appeal. 4. In this appeal, the assessee has raised following grounds of appeal: 1. Under the facts and circumstances of the case, the reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons that the assessee has not filed any return of income, however, it is because of the reason that the information received by the assessee might have not contained PAN of the assessee and therefore, the Assessing Officer could not verify the fact of filing of return of income. He has relied upon the orders of the authorities below. 7. We have considered the rival submissions as well as the relevant material on record. The Assessing Officer has reopened the assessment by recording the reasons as under: Reason for issuance of Notice U/s 148 Read with section 147 In this case the assessee has not filed the return of Income for A.Y.2011-12. As per information available on record the assessee has deposited a sum of ₹ 15,20,500/- in the Saving Bank account held with State Bank of Patiala during the F.Y.2010-11. Since the assessee has not filed the return of Income for A.Y.2031-12. Therefore, I have the reason to believe that income of ₹ 15,20,500/- chargeable to tax has escaped assessment for the A.Y.2011-12 and thus it is a fit case to initiate proceeding within the meaning of section 147 of Income Tax Act,1951. Notice u/s 148 of Income Tax Act,1961 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h ITO Ward 6(1) Jaipur vide acknowledgment no. 2611000925 on 21.05.2008. It is relevant to note that the return of income so filed manually is with ITO Ward 6(1) who is the same officer who has subsequently issued the notice u/s 148 of the Act and therefore, Revenue cannot take the plea that return was filed wrongly by the assessee with another officer not having jurisdiction over the assessee. The related contention of the Revenue that the return so filed manually not uploaded in the IT system therefore cannot be accepted more so in the context of reassessment proceedings and where there is fault on the part of the assessee in filing his return of income. 14. Interestingly, during the course of reassessment proceedings, the ITO in his reassessment order stated clearly in Para 5 that in the return of income filed under the head Business, you have declared income of ₹ 175,510 on gross receipts of ₹ 21,93,870 u/s 44AD. It is relevant to note the said return of income was not filed in pursuance to issuance of notice u/s 148 but the same was the return of income which was originally filed by the assessee u/s 139 of the Act. It is therefore clear that the whole foundati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the information and material received from other source, AO is required to consider the material on record in the case of the assessee and thereafter is required to form an independent opinion that the income has escaped assessment. Without forming such an opinion, solely and mechanically, relying upon the information received from other source, there could not be any reassessment for verification. 17. Similar proposition has been laid down by the Hon'ble Delhi High Court in case of CIT-Central-1 vs. Indo Arab Air Services (supra) wherein it was held as under: 20. Keeping the above legal position in view when the cases on hand are examined, it is seen that as far as Indo Arab is concerned white the AO set out the information received from the ED, he failed to examine if that information provided the vitaI link to form the 'reason to believe' that income of the Assessee had escaped assessment for the A Y in question. While the AO has referred to the fact that the ED gave information regarding cash deposits being found in the books of the Assessee, the AO did not state that he examined the returns filed by the Assessee for the said AY and detected that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tradiction on part of the AO to hold that assessee has not filed his return when the records so filed before us shows, and a fact which remain undisputed, that the return of income has been filed even though manually and which has been duly acknowledged. In the instant case, the AO has thus failed to examine the AIR information so received which would have provided the nexus or the vital link to form a prima facie opinion that income of the assessee had escaped assessment for the impugned assessment year. In absence of necessary nexus between the tangible material and formation of belief, the reassessment proceedings cannot be sustained in the instant case. 19. In light of above discussions, we are of the view that the jurisdictional required as provided in section 147 read with the proviso has not been fulfilled in the instant case. In the result, the reassessment proceedings are hereby quashed and set-aside. In the result, ground no. 1 of the assessee's appeal is allowed. Accordingly, in the facts and circumstances of the case, where the Assessing Officer has reopened the assessment mechanically without application of mind and as well as following the decision of this ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
