9911796707
TMI Blog2025 (3) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... me -tax Act, 1961 (hereinafter called the "Act") by the National Faceless Appeal Centre (NFAC), Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Learned Income-Tax Officer, Ward -15(3)(3), Mumbai in resorting to the reassessment proceedings and accordingly the notice issued under section 148 of the Act as being bad in law. 2. That the order dated 03.01.2023 passed u/s 250 of the "Act" by the National Faceless Appeal Centre (NFAC), Delhi is against law and facts on the file in as much as he was not justified to uphold the action of the Learned ITO, Ward - 15(3)(3), Mumbai in adding back a sum of Rs. 80, 00, 00, 000/- received by the Appellant Company from M/s Sur Buildcon Pvt Ltd (no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on received from the office of the ADIT (Inv.), Unit-3(4), New Delhi, the AO came to know about the following alleged facts:- "During the AY 2012-13, a company named Jawahar Credit and Holdings Private Limited issued shares at premium of of Rs. 190/- per share having face value of Rs. 10/- each. It has been noticed that the company has not done any business activity. On perusal of bank statement of share subscribers it was revealed that those subscribers that the assessee, M/s Savroli Finvest Limited has received a sum of Rs. 55, 00, 000/ - were group companies of M/s Bhushan Steel and family members of Shri Brij Bhushan Singhal. It was also observed that the subscriber companies had no creditworthiness. When the bank account statement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany to disclose fully and truly, all material facts necessary for its assessment for the year under consideration, we fail to understand what are those material facts which were not disclosed fully and truly. During the course of original assessment proceedings, the assessee had filed detailed reply to the queries raised by the AO vide reply dated 13/11/2014 which is placed in paper book from pages 152 to 153 and at point no. 6, the assessee has furnished details of increase in share capital along with the confirmation bank statements and ITRs in respect of those parties from whom share application money has been received during the year. 7.1. Page 154 is the confirmation of M/s. Sur Buildcon Private Limited confirming the application a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment order dated 23/03/2015 framed u/s 143(3) of the Act of M/s. Tremendous Mining & Minerals Pvt. Ltd., for AY 2012-13 is placed at pages 147 of the paper book, by which the returned income of the assessee was accepted as such. Moreover, these are group companies of the assesee. 11. Thus, the assessee has furnished clinching evidences before the AO during the course of the original assessment proceedings to prove the transactions. Therefore, by no stretch of imagination it can be said that the assessee failed to disclose truly and fully all material necessary for its assessment for the year under consideration. 12. Since the reopening is of more than four years from the end of the relevant assessment year, first proviso to Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso." [emphasis supplied]" 13. On similar situation, the Hon'ble High Court of Bombay in the case of TAO Publishing (P.) Ltd. vs. DCIT [2015] 370 ITR 135 (Bombay) has interalia held as under:- "10. As stated above, the reasons supplied to the Petitioner do not disclose that there was any failure on the part of the Petitioner to provide all the material facts. That being the position, this ground could not have been taken up against the Petitioner at the time of disposing of the objections. Once this was not the basis for issuance of notice for Reassessment, it cannot be held against the Petitioner that the Petitioner had failed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns which had been disclosed to the assessee that there was any failure on his part to fully and truly disclosed material facts necessary for assessment for relevant assessment year. Hence, the jurisdictional condition for reopening the assessment beyond a period of four years had not been fulfilled. Even during the course of hearing, it had not been the submission of the revenue that there was any suppression of material facts on the part of the assessee. Therefore, the impugned notice was to be set aside." 15. In another case of First Source Solutions Ltd. vs. ACIT in [2021] 438 ITR 139 (Bombay), the Hon'ble Jurisdictional High Court, held as under:- "11. Therefore, when the assessment is sought to be reopened after the expiry of period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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