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TMI Blog2021 (5) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... reinafter referred to as 'the Act' for short), in respect of Assessment Year 2012-13 by the Assessing Officer, on the ground that same is illegal, without jurisdiction, as prescribed under the Act. 2. Briefly stated the facts of the case are that the writ applicant being a Private Limited Company filed his return of income on 29.09.2012, declaring the total income at Rs. 1,97,814/-. On 25.03.2015, the assessment was framed under Section 143(3) of the Act. During the assessment proceedings various details were called for by the AO including the details pertaining to the bank entries and various transactions made during the year under consideration. The writ applicant vide letter dated 01.08.2014 and dated NIL (page-52 to 56) had furnished v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein frequent high value RTGS and transfer credits followed by transfer and RTGS debits are observed. Instances of outward remittances are also observed. The total turnover of the account in span of 7 months is over Rs. 79.44 Crores. As declared by the customer, company is in trading of diamonds and the transactions pertains to business. Transfer transaction are seen between account of M/s Rashmi Diamond Pvt Ltd and assessee company's bank account. Instances of outward remittances are observed in the account of M/s Divya Jyoti Diamonds Pvt Ltd (A/c No.:018010200032081). The origin of funds and rationale behind routing such huge and multiple transactions is not very clear. It seems that account was opened for rotation of funds. Based on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I.T. Act. 5. In this case a return of income was filed for the year under consideration and regular assessment u/s.143(3) of the was made on 25.03.2015. Since, 4 years from the end of the relevant year has expired in this case, the requirement to initiate proceedings u/s. 147 are reason to believe that income for the year under consideration has escaped assessment because of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the assessment year under consideration. As the credit entries in the bank account of the assessee more than Rs. 51.96 Crore than the sales shown by the assessee during the year under consideration which is its unexplained credit entries and the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons recorded and order disposing the objections raised by the writ applicant, it was contended that the AO had mechanically disposed of the preliminary objections. Relying on the decision of GKN Driveshafts (India) Ltd, (2003) 259 ITR 19, it was submitted that the AO should have dealt with each objection and should have assigned cogent reasons for its conclusion, by passing a speaking order. In this context, it was submitted that in the case on hand, although various objections were raised against the impugned notice, yet the AO failed to take note of the objections and mechanically disposed of the same without assigning the reasons on the issues. Therefore, it was submitted that the impugned notice as well as the order disposing the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r hand, learned Senior Standing Counsel Mrs. Kalpana Raval appearing for the revenue, reiterating the stand adopted by the revenue in affidavit in reply as well as in the order of disposing of the objections, submitted that the action taken by the AO is just, legal and proper and does not warrant any interference. It was further submitted that the AO has assigned cogent and sound reasons while disposing the preliminary objections filed by the writ applicant. It was further submitted that the impugned notice has been rightly issued by invoking Section 147 of the Act as writ applicant failed to disclose the truly and fully material facts with regard to credit entries as referred by the AO in the reasons recorded for the reassessment. It was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down the procedure as to the manner of dealing with the objections raised against the notice under Section 148 of the Act. The Supreme Court has held that when a notice under Section 148 of the 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 notice. It was further held that the AO is bound to furnish reasons within a reasonable time and upon receipt of reasons, the noticee is entitled to file an objection to issuance of notice and AO is bound to dispose of the same by speaking order. In the case of SABH Infrastructure Ltd (supra), the Delhi High Court, has held that the exercise of considering the assessee's objections to the reopening of the assessment is n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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