TMI Blog2022 (8) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has raised following ground of appeal:- 1. That on the facts and circumstances of the case the learned A.O. CIT(A) erred in-: a) Initiating the provisions of Sec. 147 of the Income Tax Act, 1961. b) Applying the Provisions of Sec. 147 without referring to any tangible material. c) Issuing notice U/s 148 without obtaining sanction for same as envisaged in Sec. 151 of the Income Tax Act, 1961. d) Equated the cash deposits in Bank as income of the Assessee without showing application of mind. e) Disposing the objections, filed by Assessee, without passing speaking order and in contravention to law. f) Making addition under the Head Business Income' while accepting t explanation of the Assessee for deposit of cash in Bank, thereby invalidating the assessment. g) Adding the notional income of Rs.3,28,888/- u/s Sec. 44AD of the Act eve l though the Assessee has not done any business during year under consideration. h) Making addition on Presumption and conjectures. I. That without prejudice to what stated in Point 1 above, the Satisfaction and Sanction obtained from senior officer was mechanical and incomplete, rendering t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... validity of the re-opening of the assessment by finding on fact by Ld.CIT(A) is as under:- 5.1. To verify the contention of the appellant, the assessment record were called for from the AO and the same was examined. It is seen from the records that the initial notice dated 30.01.2018 was issued by ACIT Circle 41(1), New Delhi. However, there was no response to the said notice/letter. Subsequently, it was observed by the said officer, that as per the latest ITR of the appellant i.e. for AY 2016-17, the jurisdiction was with the ITO Ward-41(3). Therefore, the records available in the office of ACIT Circle 41(1) were transferred to ITO Ward 41(3) on 13.03.2018. The ITO Ward 41(3), thereafter observed that the assessee had not filed any return of income for AY 2011-12 although he had deposited in cash Rs. 53,89,200/- in three saving bank accounts and another Rs. 3,00,000/- in a banking company and had earned 5,88,170/- as interest on FDR with one of the banks. The notice was issued accordingly u/s 148 on 26.03.2018 after following the due procedure. Therefore, the contention of the appellant that notice under section 148 was issued by non-jurisdictional officer is not correct; an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the contention of the appellant with respect to the initiation of provisions of section 147, without referring to tangible material, and issue of notice u/s 148 without obtaining sanction of CIT, are found to be baseless and without any merit. 5.2.1. It is already stated above, that the records had been transferred from ACIT Circle 41(1) to ITO Ward 41(3). The records consisted of information from 26AS, AIR information and CIB compulsory code transaction details along with return for AY 2015-16. Further, the jurisdictional AO processed all information available with him and recorded his reason to believe and sent the same to PCIT Delhi-14, New Delhi who was the competent authority to sanction the reopening of the case. The sanction was accorded under her signature on 26.03.2018 and notice u/s 148 was issued on 28.03.2018. Therefore, the contention made by the appellant vide ground No. 1(c) is merely an allegation which is found to be untrue and misguiding. Therefore, ground No. 1(c) is dismissed. 5.2.2. In ground No. 2, the appellant has stated that the satisfaction and sanction obtained was mechanical and incomplete. However, it is seen from the records that P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder where point wise reply has been given to the assessee. 5.3.1. In the case of GKN Driveshafts (India) Ltd. v. ITO 125 Taxman 963 Hon'ble Supreme Court has held that when a notice under section 148 is issued, the proper course of action for the notice is to file return and if he so desires, to seek reasons for issuing notice. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the notice is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order. 5.3.2. In view of this decision, the AO is required to dispose off the objections raised by the appellant through a speaking order which the AO has done in the instant case. In light of the discussions made in the para above, the contention of the appellant that the objections have been disposed off through a non-speaking order, has no merit and therefore it is dismissed. 5.3.3. The following decisions of Hon'ble Courts clearly mentioned that sufficiency of reasons in initiation of reassessment proceedings is not necessary: - In the case of S. Narayanappa vs. CIT 63 ITR 219 Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proceedings is not to be preceded by any judicial or quasi-judicial enquiry. Reasons which may weigh with the Assessing Officer may be the result of his own investigation and may come from any source that he considers reliable. Formation of his belief is not a judicial decision but is an administrative decision. Nevertheless, he is required to act fairly and judiciously. 5.3.5. Further in the case of Raymond Woollen Mills Ltd. Vs. ITO others 236 ITR 34 Hon'ble Supreme Court has held that in determining whether commencement of reassessment proceedings was valid it has only to be seen whether there was prima facie some material on the basis of which the department could reopen the case. The sufficiency or correctness of the material is not a thing to be considered at this stage. This was reiterated in Kartikey International vs. CIT (All) 329 ITR 539. 9. I have heard the contentions of Ld. Authorized representatives of the parties and perused the material available on record and gone through the orders of the authorities below. The assessee has not brought any material to rebut the finding of the Ld.CIT(A). In the absence of the rebuttal by the assessee and bringing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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