TMI Blog2024 (1) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... apore. Assessee has obtained form 15CB and filed form 15CA with regard to the said remittances to its J.P Morgan Bank account in Singapore. From the above it is apparent that the assessee has only repatriated the amounts invested in the earlier years and hence, no taxability arises during the year. In the case of the assessee company, neither has any income accrued or arisen or is deemed to accrue or arise under that for the assessment year 2017-18 nor any claim has been under any DTAA. It is apparent that the Assessing Office has not examined the relevant records before them wherein the interest earned has been duly offered to tax. Hence it can be concluded that there was no escapement of income during the year and hence, the notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration. 2.1. That on the facts and the circumstances of the case and in law, the learned AO has erred in treating the amount of Rs 203,56,82,630 as unexplained investments. 2.2. That on the facts and the circumstances of the case and in law, the learned AO has erred in not appreciating the fact that the Appellant has not earned any income nor has made any investments in non-convertible debentures ( NCD's ) during the year under consideration and hence, no income whatsoever was chargeable to tax for the year. 2.3. That on the facts and the circumstances of the case and in law, the learned AO has erred in not meaningfully considering the submissions made by the Appellant explaining the source of investments made by it in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.1. That on the facts and in the circumstances of the case and in law, the Ld. AO erred in levying interest under section 234A of Rs 67,62,02,864 and 234B of Rs 1,10,07,95,360 of the Act. 4. Ground 4 - Initiation of Penalty 4.1. That on the facts and the circumstances of the case and in law, the learned AO has erred in initiating penalty proceedings under section 270A r.w.s 274 of the Act mechanically and without recording any satisfaction for its initiation. 4.2. That on the facts and the circumstances of the case and in law, the learned AO has erred in not appreciating the facts of the case that there is clear ignorance of factual submissions by the learned AO and there is no misrepresentation and suppression of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling IT for the year. The assessee was requested to make compliance by 20.03.2021. However, no reply has been received from the assessee till date. Further ITS details from ITBA, 360 Degree data, E-filing portal and 26A data from CPC TDS has been verified and found that no IT has been filed by the assesse whereas transactions amounting to Rs. 2,03,56,82,630/- has been carried out during the year under consideration. 5. Thus, the above facts indicate that the assessee has failed to file return of income for the year under consideration as per the provisions of Section 139 while prime facie the assessee was having taxable income during the year. Provisions of Sec 139 of the Income Tax Act, 1961 are reproduced below: 139. (1) Every ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xman 316 (SC), Hon'ble Supreme Court has held that: All that is required for the Revenue to assume valid jurisdiction u/s 148 is the existence of cogent material that would lead a person of normal prudence, acting reasonably, to an honest belief as to the escapement of income from assessment. It is also pertinent to mention that on similar lines, in the case of CIT v. Nova Promoters Finlease (P) Ltd (ITA NO. 342 of 2011), the Hon ble Delhi High Court, which is the jurisdictional High Court, has held as below: We are aware of the legal position that at the stage of issuing the notice under Section 148 the merits of the matter are not relevant and the Assessing Officer at that stage is required to form only a prima facie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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