9911796707
TMI Blog2025 (5) TMI 1403X X X X Extracts X X X X X X X X Extracts X X X X ..... ome, therefore, initiation of reassessment proceedings based on wrong recorded facts as per explanation-2, which state that, for the purpose of this section the following shall be deemed to be cases where income chargeable to tax has escaped assessment, and as per explanation-2(c)(i) which state that, where the assessment has been made but income chargeable to tax has been under assessed, therefore, reopening of assessment is void ab initio and to be quashed. The Learned Assessing officer has failed to prove prima facie opinion based on Tangible material which provide nexus or link to having reason to believe that income had escaped assessment. Thus, there was no reason nor any justification given in notice to even arrive at prima facie finding that sales led to escapement of income. [3] On the facts and in the circumstances of the case, the Learned AO Ward-1(3)(1), Ahmedabad. Income Tax Department has erred, both on facts and in law, as the assessment was reopened u/s 147 on basis of information received from ITO (Inv.) unit-2 Ahmedabad without application of mind, as the very same information was available in assessment record of assessee on the basis of which the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y not providing cross examination though requested, without giving sufficient and specific opportunity to the appellant and thereby violating the principles of natural justice. The Appellant should therefore be allowed to produce additional evidences during the course of appellant proceeding and should be admitted. [11] The Learned Assessing officer has grievously erred in making addition of variation in respect of unexplained Income from undisclosed sources though, the sales of Rs. 41,99,500/- made to M/s. Akshar Corporation prop. Shripal Pravinchandra Shah was recorded in the Books of Account and the payment has been received through banking channel only, which are audited by Chartered Accountants. [12] That the learned Assessing officer has grievously erred in not considering the explanation of the appellant in regards to the credit is prima facie reasonable even though the same has been rejected on capricious and arbitrary grounds [13] That the learned Assessing officer has grievously erred in not considering the fact that books of accounts were audited by Chartered Accountants wherein appellant has maintained stock account and there could be no inference on suppression o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cancelled. [21] That the appellant has not committed default of Section 207 to 219 and interest charged under sections i.e. 234A, 234B,234C and 234D deserves to be deleted. [22] That the appellant craves leave to add, amend or alter any of the grounds of appeal It is therefore prayed that the addition of Rs. 41,99,500/- made by the Assessing officer should be deleted." 3. The assessee filed return of income declaring total income at Rs. 19,85,572/- on 31-08-2012. The case of the assessee was reopened for assessment year 2012-13 after recording reasons for doing so and also after obtaining necessary approval from the Pr. CIT. Notice u/s. 148 of the Income Tax act, 1961 dated 28-03-2019 was issued. In response to the notice u/s. 148, the assessee filed return of income on 25-04-2019 declaring total income of Rs. 19,81,572/-. The reasons recorded for reopening of the assessment was provided to the assessee on 18- 06-2019 along with notice u/s. 143(2) of the Act. Thereafter, notice u/s. 142(1) dated 02-11-2019 was issued and served to the assessee. In response to the same, the assessee furnished certain details/information on 19-11-2019. The assessee objected reopening of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was rejected arbitrarily. The ld. A.R. submitted that books of accounts were duly audited and the assessee was opening stock account and therefore there was no suppression of sales as contended by Assessing Officer. The ld. A.R. submitted that recording purchase and sales in the books of accounts then only profit element should be taxed which the assessee has already offered to tax. The ld. A.R. submitted that without any incriminating material as to a bogus sale, the Assessing Officer cannot give finding contrary to the same. The Assessing Officer should have given the benefit of purchase against sales as the Assessing Officer has accepted the purchase. The ld. A.R. submitted that amount returned back to the assessee, though assessee filed relevant documents; ledger accounts, bank statement, details to prove genuineness of sales and payments received through banking channel. The ld. A.R. further submitted that the Assessing Officer has made against bogus sales of same amount though the same was recorded in the books of account, therefore no addition could be made for similar amount in the hands of the assessee because it amounted to double taxation. The sum of Rs. 41,99,500/- h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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