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TMI Blog2023 (10) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... burden u/s 68 was duly discharged by the appellant. 2. Because the CIT(A) has erred on law and facts in confirming assessment order which was passed in pursuance of assessment proceedings initiated u/s 147/148 of the Act by recording reasons by DCIT. Circle 8(1), New Delhi, who had no jurisdiction over the appellant as per law and thus the entire assessment proceedings initiated u/s 147/148 of the Act is beyond jurisdiction, illegal and against the authority of law and thus liable to be quashed. 3. Because the CIT(A) has erred on law and facts in confirming the assessment order which was passed in pursuance of assessment proceedings initiated u/s 147/148 of the Act, beyond four years, without fulfillment the mandatory jurisdictional conditions as per law, and in particular, relying on the borrowed satisfaction without any Independent inquiry, without any independent application of mind, based on some investigation wing report, without any tangible material to link the fact of the transaction of the appellant and thus the entire assessment proceedings initiated u/s 147/148 of the Act is without jurisdiction in terms of Sec 147, illegal and against the authority of law and thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e going into the merits of the addition made u/s 68 of the Act in the sum of Rs. 1 Crore. 4. We have heard the rival submissions and perused the material available on record. The assessee filed its original return of income electronically on 15/10/2010 declaring total income of Rs. 5,03,571/-. The case was sought to be re-opened by issuance of notice u/s 148 of the Act dated 30/03/2017 after recording the reasons for reopening thereon. For the sake of convenience, the reasons recorded by the Ld. A.O. as enclosed in page 8-9 of the PB are reproduced hereunder: "1. Background The assessee company M/S. Edge Infrabuild Pvt. Ltd. has filed its return of income for A.Y. 2010-11, as per information available on ITD system of this Circle. 2. Information received 2.1. This office has received information from ADIT (Inv.) Unit 6(3), New Delhi in the above mentioned case which is as under: "Sh Himanshu verma was engaged in the activities of providing accommodation entries to various beneficiaries group. He did this by Incorporation of numerous corporate and non- corporate entities where directors/ partners/ proprietors were his employees and closed associates. Modus operandi o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apparent that the assessee company has credited bogus entries to the tune of Rs 1,00,00,000/- from M/s Jaguar Softech Pvt. Ltd. and M's Shubb Propbuild Pvt. Ltd. which was not disclosed in return of income. Since the assessee company was accounted a bogus entry of Rs. 1,00,00,000/- as per details given above and information in the possession of this office, therefore, I have reason to believe that at least an income of Rs 1,00,00,000 has escaped assessment as defined by section 147 of the Act for Assessment Year 2010-11 The income chargeable to tax has escaped assessment for this year by the reasons of the failure on the part of the assessee to disclose fully and truly all material facts. Therefore it is a fir case for the issuance of notice u/s 148 of the Act for the financial year 2009-10 relevant to assessment 2010-11. The necessary sanction in this regard is being obtained separately from Pr. Commissioner of Income Tax, Delhi-03, New Delhi before the issue of notice u/s 148." 5. The reassessment was completed u/s 143(3) r.w.s.147 of the Act on 26/12/2017 at a sum of Rs. 1 Crore in respect of amounts received by the assessee company from two entities belonging to Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same to the total income. 6. This action of the Ld. AO was upheld by the Ld. CIT(A). 7. At the outset, we find that the Ld. AR made a preliminary objection that notice u/s 143(2) of the Act was not issued to the assessee in the reassessment proceedings. Hence, he pleaded that the entire reassessment proceedings without the issuance of mandatory notice u/s 143(2) of the Act, had to be quashed as void abinitio. When this was confronted to Ld. DR, the Ld. DR vehemently relied upon para 4.6 of the order of the Ld. CIT(A) which read as under: "4.6. The AR of the appellant has also objected that the impugned reassessment order has been passed without assuming jurisdiction as per law and without serving the mandatory notices u/s 143(2) of the Income Tax Act, 1961 In this regard, It is seen from the order of the AO that in para 2 on page 1, it is clearly mentioned that notices u/s 143(2) was issued the assessee. It is further seen from the order of AO that the AR of the appellant has duly attended the reassessment proceedings and the order has been passed u/s 147/143(3). The assessee never objected to the proceedings before the completion of re-assessment proceedings, as provided fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were correct. We, therefore, see no reason to take a different view in the matter." 8. Respectfully following the same, we hold that non- issuance of notices u/s 143(2) of the Act is jurisdictional defect not curable u/s 292BB of the Act. Ld. DR before us sought time to check the assessment records in this regard and provide written submission thereon. The matter was taken as heard on 25/04/2023 but no such written submission was filed by the Ld. DR till the date of passing of this order. Accordingly, we confirm the observation of the Ld. CIT(A) that no notice u/s 143(2) of the Act was ever issued in the instant case. Respectfully following the observations of the Hon'ble Supreme Court, the entire reassessment proceedings are to be declared as void abinitio. 9. Since, the relief is granted to the assessee by quashing the entire reassessment proceedings on this ground, the other grounds raised by the assessee on reopening and the grounds raised by the assessee on merits need not be gone into, as adjudication of the same would be merely academic in nature and hence no opinion is given by us with regard to those grounds and they are left upon. Accordingly, the grounds raised by th ..... 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