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TMI Blog2025 (2) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment u/s 147 of the Act, overlooking the fact that the conditions precedent for assumption of jurisdiction under section 147 were not fulfilled and therefore, the assessment framed u/s 147/ 144 of the Act is void ab initio, ultra virus and nullity in the eyes of law. 03. The facts in brief are that the assessee filed the return of income on 23.09.2009 declaring total income at Rs. 998/-. Thereafter, the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act 31.3.2016. There was no compliance to the said notice as the assessee did not filed any return of income in compliance. During the course of assessment proceedings, u/s 147 of the Act for A.Y. 2008-09, the ld. AO noted that the assessee has fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escaped assessment within the meaning of section 147 of the Act. Thereafter the ld. AO issued a show cause notice to the assessee as to why the money received of Rs. 24,55,000/- should not be treated as unexplained cash credit and added to the income of the assessee u/s 68 of the Act which was replied by the assessee by submitting that the amount was received from M/s Hopewell Merchants Pvt. Ltd. during normal course of business through bank. The ld. AO finally after rejecting the reply of the assessee and relying on the report of the investigation wing concluded that the explanation of the assessee was not tenable and accordingly added Rs. 24,55,000/- to the income of the assessee as unexplained cash credit u/s 68 of the Act. 04. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was not clear. The ld. DR therefore, submitted that the case was validly re-opened by the ld. Assessing Officer. 06. After hearing the rival contentions and perusing the materials available on record, we find that the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act. The assessee did not comply with the said notice by filing the return of income. We have perused the reasons recorded for reopening of assessment u/s 148(2) of the Act, the copy of which is available at page no. 66 of the paper book, which revealed that the ld. AO after extracting the report of the investigation, simply recorded in three lines that I have reason to believe that assessee's income chargeable to tax has escaped asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Flat No. 4A & SA, Kolkata-700 089. During the course of Search & Seizure operation, statements of various persons viz. Sri Gopal Ranjan Saha Roy, an employee of Sri Santosh Kumar Shah, Sri Barün Nahar Roy, former director of Edward Supply Private Limited, Sri Vinod Kumar Shah, a relative of Shri Santosh Kumar Shah and Shri Santosh Kumar Shah were recorded. All the above named persons have deposed on oath that the companies controlled/run by Shri Santosn Kumar Shah were engaged in providing accommodation entries in the form of share capital, loans etc. Shri Santosh Kumar Shah himself admitted that he was engaged in providing entry of bogus share application/loans. During the course of Search & seizure operation, a total number of 40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed." Sd/- (joyanta Mridha) DCIT, Circle-4(2), Kolkata" 07. It is apparent from the above that there is no satisfaction or independent application of mind by the ld. AO to the information received. Moreover, the reasons are vague, scanty and ambiguous. Therefore, we are inclined to quash the reopening of assessment. Consequently, the appeal of the assessee is allowed. 08. Since, we have allowed the appeal of the assessee on legal issue i.e. reopening of assessment being invalid and nullity in the eyes of law, the other grounds raised by the assessee on legal issue as well as on merits are not being adjudicated at this stage and are left open if the need arises for the same at a later stage. 02/KOL/2024 for A.Y. 2010-11 09. The issues ..... X X X X Extracts X X X X X X X X Extracts X X X X
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