9911796707
TMI Blog2021 (6) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings 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 12.01.2015 had furnished various details like bank particulars, bank statements, purchase and sales ledgers, etc. The AO after considering the details furnished by the writ applicant, framed the assessment under Section 143(3) of the Act, determined the total income at Rs. 7,42,900/-, making addition of Rs. 75,000/-. 3. Thereafter, the AO issued impugned notice under Section 148 of the Act for reopening of the assessment for the year 2012-13. In response to the notice, the writ applicant filed his return of income and asked to provide reasons recorded for the reassessment. The revenue vide its communication dated 23.11.2019 furnished the reasons recorded, which reads as under:- Reasons for reopening :- "2. Brief details of information collected/received by the AO:- Information in this case has been received from ADIT ( Inv.)Unit-3, Surat, Vide letter dated 15.03.2019 from which it is revealed that assessee having bank account bearing no. 561011016425 wherein total credit en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has not disclosed true and full facts related to this transaction before the Department. Therefore, I have reason to believe that the income of Rs. 135,76,68,454/-chargeable to tax has escaped assessment for the A.Y. 2012-13 by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment for A.Y.2012-13 and therefore it is a fit case to reopen u/s 147 of the Act. 7.Seventh paragraph will include escapement of income chargeable to tax in relation to any assets (including financial interest in any entity) located outside India: Not applicable. 8. Escapement of Income: In view of the above facts, it is established that the assessee has not disclosed the correct and full material facts for the year under consideration and hence, | have reason to believe that credit entries of Rs. 135,76,68,454/- chargeable to tax has escaped assessment because of non disclosure of true and correct material fact necessary for assessment for A.Y.2012-13. Therefore I have reason to believe that this is a fit case for invoking the provisions of section 147 of the Income tax Act. 9. Applicability of the provisions of section 147/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue(s) under consideration were not filed during the course of assessment proceeding and the same may be embedded in audited P&L A/c., balance sheet and books of account in such a manner that it would require due diligence by the AO to extract these information. For aforestated reasons, it is not a case of change of opinion by the AO. In this case, more than four years have lapsed from the end of assessment year under consideration. Hence, necessary sanction to issue notice u/s. 148 is being obtained from Pr. CIT-2, Surat as per the provisions of section 151 of the Act." 4. The writ applicant raised various objections vide communication dated 05.09.2019, both on the ground of jurisdiction as well as on merits and requested the respondent to drop the reassessment proceedings. Same came to be rejected by the respondent vide order dated 15.11.2019, holding that the assessment is valid and within jurisdiction. 5. Being aggrieved by the impugned notice as well as the order disposing of the objections, the writ applicant came up with present writ application. 6. We have heard the learned Senior Advocate Mr. Sunit Shah, assisted by Mr. Omkar Dave, the learned advocate appearing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and truly all material facts, the assumption of jurisdiction by the AO under Section 147 of the Act is invalid. 11. On the other 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 submitted that the principle of change of opinion would not be applicable in the present case as the information received after framing of the assessment order which clearly shows that the assessee failed to disclose the material, which is incorrect and was not available at the time of previous assessment proceedings. &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f notice under Section 148 of the Act, though not part of the statutory requirement, as prescribed under the Act, however, same is guided by the directions issued by the Apex Court. The specific objections raised by the writ applicant, produced on record at page-44 to 55 to this writ application, have not been properly dealt with by the AO. The lapse is in clear violation of the decision of the Apex Court. We are of the view that the AO has passed the order mechanically and without application of his mind. In other words not in a meaningful manner. 15. In view of the above, this writ application succeeds in part. The order disposing of the objections filed by the assessee dated 15.11.2019 at Annexure - A, page-18 to 35 to this petition is hereby set aside and the matter is remitted to the AO. The AO shall take into consideration the objections raised by the assessee and pass a fresh speaking order in accordance with law. 16. Let this exercise be undertaken within a period of six weeks from the date of the receipt of this order. We may clarify that we have otherwise not expressed any opinion on the merits of the case and we should otherwise also not do so as we are remitting the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
