9911796707
TMI Blog2024 (9) TMI 1446X X X X Extracts X X X X X X X X Extracts X X X X ..... he grounds of reopening and the addition made u/s. 69A of the Act towards unexplained investment/credit amounting to Rs. 99,99,911.50/-. 3. Briefly stated the assessee is a non resident individual and has not filed his return of income for the year under consideration. Based on the information received through Directorate of Income Tax (System), the assessee's case was reopened as 'high risk non filers' case under Risk Management System (RMS) in accordance with the risk management strategy formulated by the CBDT. 4. The ld. Assessing Officer ('A.O.' for short) issued a reassessment notice u/s. 148A of the Act dated 27.03.2022 for the reason that the assessee has entered into four transactions to the tune of Rs. 1,42,03,454/- which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he final assessment order, the assessee is in appeal before us, challenging the impugned assessment order. 6. The learned Authorised Representative (ld. AR for short) for the assessee contended that the Hon'ble DRP in its order has rightly mentioned that the reasons for reopening the assessee's case is based on erroneous facts which does not pertain to the assessee. The ld. AR further stated that the assessee has been denying the same throughout the assessment proceeding which did not pay heed to by the ld. A.O. The ld. AR further stated that the Hon'ble DRP has erred in rejecting the original draft assessment order passed by the ld. A.O. which was on irrelevant facts and in replacing the same by the directions of the panel, pursuant to wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the justification rendered by the ld. AR on the reason for failure on the part of the assessee to furnish the same before the lower authorities. It is observed that the ld. A.O. has reopened the assessee's case for the reason that the assessee has entered into the following financial transaction during the impugned year: Information Code Information Description source count Amount Description Amount (Rs.) TDS-195 TDS Statement - Payment made non residents (Section 195) Axis Bank Ltd. 1 Amount paid or credited 13900 STT-02 Sale of equity share (settled by the actual delivery or transfer) in a recognized stock exchange NSE 1 Value of taxable securities transactions (Code 02) 123710 STT-01 Purchase of equ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Hon'ble High Court of Calcutta in the case of Excel Commodity Derivative (P) Ltd. (supra), wherein it was held that the term 'information' stated in Explanation 1 of section 148 cannot be taken at ease for the purpose of reopening an assessment and the Revenue cannot be given an unbridled power to reopen the assessment based on such information. Further, it held that the ld. A.O. has lightly used the said information and had issued notice and further proceeded to make addition on a fresh ground after duly considering the assessee's submission. The relevant extract of the said decision is cited herein under for ease of reference: 5. Further, we take note of the Circular issued by the Central Board of Direct Taxes (CBDT) dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore initiating proceedings under section 148/147 of the Act. Thus, in the preceding paragraph we have pointed out the factual position in the case on hand and it appears that proper verification was not done on the information which was available with the assessing officer at the time of issuance of notice under section 148A(b) of the Act which has led to an erroneous order dated 7th April, 2022 being passed. 7. In Divya Capital One (P.) Ltd. v. Asstt. CIT [2022] 139 taxmann.com 461/445 ITR 436 (Delhi), the Court had considered the new re-assessment claim and held as follows: "7. This Court is of the view that the new re-assessment scheme (vide amended sections 147 to 151 of the Act) was introduced by the Finance Act, 2021 with the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the information has been lightly used which resulted in issuance of notice. As pointed out earlier, the assessee had submitted the explanation to the notice along with documents in support of their claim. The assessing officer has given up the said allegation which formed the basis of the notice and proceeded on a fresh ground for alleging that the transaction with some other company was an accommodation entry. Therefore, on that score also the order dated 7th April, 2022 is liable to be set aside in its entirety without giving any opportunity to reopen the matter on a different issue. 9. For the above reasons, the appeal filed by the assessee (APOT/132/2022) is allowed and the order dated 7th April, 2022 under section 148A of the Act i ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
