TMI Blog2023 (1) TMI 1217X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer shall provide adequate opportunity of being heard to the assessees. The assessees are at liberty to file necessary evidences in support of their claims. Grounds raised by the assessee are allowed for statistical purpose. - I.T.A No.1673/Del/2022 And I.T.A No.1674/Del/2022 - - - Dated:- 24-1-2023 - Shri Challa Nagendra Prasad, Judicial Member For the Assessee : Shri Neeraj Jain, CA For the Revenue : Shri Om Prakash, Sr. DR ORDER These two appeals are filed by the different assessees of same group against different orders of the Ld. CIT(Appeals)-30, New Delhi dated 26.05.2022 for the AY 2010-11. The assessee Deep Karan Dalal in ITA No. 1673/Del/2022 raised the following grounds of appeal: - 1. That the order of learned Commissioner of Income Tax (Appeals) is bad in law as well as on the facts and in the circumstances of the case. 2. That the Ld. CIT(Appeals) in the facts and circumstances of the case has erred in not appreciating that the order passed by the Ld. AO was illegal and without jurisdiction. 3. That the Ld. CIT(Appeals), in the facts and circumstances of the case, has erred in not appreciating that the order passed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case was transferred to ITO, Ward - 3(3), Chandigarh on 27.09.2017. 4. Notices u/s 142(1) of the Act were issued on 10.10.2017, 01.11.2017 and show cause notice was issued on 08.12.2017. 5. A search and seizure proceedings were initiated on the appellant's residential and business premises on 14.09.2017 and concluded on 30.10.2017. 6. The appellant could not avail the opportunity of being heard that was provided to the appellant as a result of search proceedings conducted against the appellant and his entire group. 7. As a result of search, the appellant was held up in the investigation process being conducted by the Investigation Wing at Delhi whereas the proceedings u/s 148 were being conducted in Chandigarh. Hence, for reasons beyond control, the appellant could not avail the opportunity of being heard and present his case before the Id. AO. which resulted in an ex-parte order u/s 144/147 was passed on 20.12.2017. 8. The ex-parte order was bad in law for the following reasons: a. The re-opening of the assessment has been made on the ground that the assessee has failed to explain the sources of investment made for share capital/share premium ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee as per the provisions of Section 153A of the Act. In the course of reassessment proceedings the Assessing Officer has issued several notices and questionnaires requiring the assessee to explain the source of investments made by Assessees in Angad Sons Pvt. Ltd. and Angad Sons Realcon Pvt. Ltd. towards share capital/share premium during the AY 2010-11. The assessees failed to comply with the notices in all stages. The assessee never replied nor responded to any of the notices of the Assessing Officer. The Assessing Officer based on the information available with him and the records, came to know that the assessees have made investment of Rs.39 lakhs each in two Companies namely Angad Sons Pvt. Ltd. and Angad Sons Realcon Pvt. Ltd. and these investments have been treated as unexplained investments by the Assessing Officer in the absence of any response from the assessees. Before the Ld. CIT(A) the assessee contended that there is a petition pending before the Settlement Commission in the case of Angad Sons Realcon Pvt. Ltd. for AY 2010-11 and the outcome of the decision of the Settlement Commission will have bearing on the appeals of the assessee. The contention of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant as a result of search proceedings conducted against the appellant and his entire group. 7. As a result of search, the appellant was held up in the investigation process being conducted by the Investigation Wing at Delhi whereas the proceedings u/s 148 were being conducted in Chandigarh. Hence, for reasons beyond control, the appellant could not avail the opportunity of being heard and present his case before the Id. AO. which resulted in an ex-parte order u/s 144/147 was passed on 20.12.2017. 8. The ex-parte order was bad in law for the following reasons: a. The re-opening of the assessment has been made on the ground that the assessee has failed to explain the sources of investment made for share capital/share premium paid during the year amounting to Rs. 39,00,000/- in M/s. Angad Sons (P) Limited and M/s. Angad Sons Realcon Pvt. Ltd. It is submitted that the reasons recorded for re-opening were factually incorrect for the reason that the appellant had not made any investment in M/s. Angad Sons (P) Limited rather there was no such company in the records of the ROC and in so far as investment in M/s. Angad Sons Realcon Pvt. Ltd. is conce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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