TMI Blog2015 (7) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... nds in view of the specific details of transaction provided by the Investigation Wing. Issue of notice u/s 148, which is the statutory procedure for enabling the Ld. AO to verify whether such information was correct or not, was rightly issued by the AO. However, merely because notice u/s 148 was issued does not mean that the information from the Investigation Wing was a gospel truth, and if on verification, the AO finds that no income can be held to have escaped in the hands of the assessee, no addition in respect of such information can be made to the appellant's income. Therefore, Ld. CIT(A) has rightly held that the issue of notice u/s 148 was good in law and the AO has followed the guidelines prescribed by the Hon'ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntly no material was gathered by the AO, is not sustainable. Decided against revenue. - ITA No. 3608/Del/2014 - - - Dated:- 8-7-2015 - SHRI H.S. SIDHU, JUDICIAL MEMBER Department by : Sh. Robin Rawal, Sr. DR Assessee by None present PER H.S. SIDHU, JM:- O R D E R This appeal by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-XV, New Delhi dated 26.3.2014 pertaining to assessment year 2004-05. 2. The grounds of appeal read as under:- i) That the Ld. Commissioner of Income Tax (A) has erred on facts and in law in admitting additional evidence as the assessee did not have any sufficient cause that prevented him to file requisite details before the AO. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat letters were issued with the statutory notices on 13.6.2011, 8.7.2011, 8.9.2011, 19.10.2011, 18.11.2011 and 30.11.2011. Finally, a final show cause notice dated 7.11.2012 was issued and a notice u/s. 142(1) was affixed on the premises of assessee company at the same address. No evidence in support of identity, genuineness and creditworthiness of the person who has given credit to the assessee has been given to the AO and AO held that Rs. 12 lacs is unexplained cash credit made u/s. 68 of the I.T. Act in the case of assessee vide assessment order dated 22.2.2011 u/s. 144/147 of the I.T. Act. 4. Aggrieved with the aforesaid order dated 22.12.2011, assessee appealed before the Ld. CIT(A), who vide impugned order dated 26.3.2014 has stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place, therefore, whether such credits shown in the balance sheet were in the nature of income or not, could not have been found out, merely on perusal of the return of income. In view of this, I hold that the reason to believe of the AO that income had escaped assessment was on cogent grounds in view of the specific details of transaction provided by the Investigation Wing. Under the circumstances, issue of notice u/s 148, which is the statutory procedure for enabling the Ld. AO to verify whether such information was correct or not, was rightly issued by the AO. However, merely because notice u/s 148 was issued does not mean that the information from the Investigation Wing was a gospel truth, and if on verification, the AO finds that no in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010-11, which was available with the AO at the time of issuing notice u/s 148 on 25.03.2011. The same address is shown in the return of income for AY 2012-13 also. In both these returns the names and address of the Directors have been clearly given. Under the circumstances, it is evident that the notice u/s 148 which ought to have been issued on or before the expiry of 6 years from the end of Assessment year was issued before 31.3.2011. However, though the notice was issued on 25.03.2011, the same was issued at a wrong address and therefore, evidently could not be served upon the assessee, in any prudence. On careful perusal of the records of the assessee, I find that the AO had issued notice at 55, Royal Palace, 1st Floor, Vikas Marg, Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyal Palace, 1st Floor, Vikas Marg, Delhi, which was the address in earlier years much before the assessee had filed the return of income for the current year on 18.10.2004. Under the circumstances, as the notice u/s 148 which is foundation of the reassessment proceeding, was not served upon the assessee, the whole proceedings are held as void-abinitio. Under the circumstances, the action of the AO of making Best Judgment assessment u/s 144, in respect of which evidently no material was gathered by the AO, is not sustainable. In view of this, the additions made by the AO are not sustainable, hence, the same was rightly deleted by the ld. CIT(A). In view of the above, I do not find any infirmity in the order of the Ld. CIT(A), hence, I uphol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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