2012 (7) TMI 374

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....2002-03. 2) Being aggrieved, the appellant has raised the following questions of law for consideration by this Court. a) Whether on the facts and in the circumstances of the case and in law the Tribunal was right in holding that the A.O. was not justified in initiating proceedings u/s. 147 of the Act and accordingly, upholding the order of the CIT( A) in holding that the whole assessment is annulled? b) Whether on facts and in the circumstances of the case, the Tribunal in law was right in holding that the A.O. was not justified in initiating the proceedings u/s. 147 even though the Assessing Officer had sufficient reasons in the form of nine issues to believe that the income chargeable to tax has escaped assessment? 3) On 13 Oc....

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.... details regarding sources for incurring these expenses were incurred out of undisclosed source which required further verification under the provisions of Sec.69 of the Income Tax Act. Further there are certain issues for verification like : I) Applicability of Sec.40A ( 3) in respect of cash journal expenses. II) Personal element in respect of vehicle expenses claimed. III) Professional expenses claimed were exactly for the purpose of profession or not. IV) Books of accounts maintained by the assessee were not examined. V) Assessee maintained 7 bank accounts, but details in respect of 6 bank accounts were furnished. Details in respect of S.B . A/c. No.107456 with SBI were neither provided nor called for by the A.O. Which mi....

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....bunal. 7) On appeal, the Tribunal held that the reasons recorded for initiating reassessment proceeding under Section-147 of the said Act clearly indicates that there was no new material which had come to the notice of the Assessing Officer so as to lead to a reasonable belief that income assessable to tax has escaped assessment. The adhoc expenses of 30% from the receipts was the subject matter of consideration of the Assessing officer when he passed the assessment order on 29th March ,2005 under Section 143(3) of the said Act. Consequently, there was no fresh tangible material for the Assessing Officer to initiate reassessment proceeding under Section 147 of the said Act. 8) Both the Commissioner of Income Tax (Appeal) and the Tribu....