TaxTMI 
TaxTMI 
2012 (9) TMI 393
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....n raised: "1. The ld CIT(A) ought to have held that the notice issued u/s.148 is not a valid notice and consequently the said notice is liable to be quashed and the entire reassessment proceedings to be held void-ab-inito. 2. The ld CIT(A) ought to have held that the AO is not justified in considering the surplus of Rs.3,10,930 as not exempt u/s.10(23C) (iiiad) of the Act. 3. For assessment year 2007-08, the following issues have been raised: "1. The ld CIT(A) ought to have held that the notice issued u/s.148 is not a valid notice and consequently the said notice is liable to be quashed and the entire reassessment proceedings to be held void-ab-inito. 2. The ld CIT(A) ought to have held that the AO is not justified in conside....
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....f the case but on presumptions and surmises, and, therefore, bad in law and the order of the CIT(A) confirming such order is not justified. 5. That the conclusion of the authorities below that exemption cannot be allowed to the Institution, inspite of the fact that the superiors decided otherwise, is not justified. The ld authorities below have referred to rulings without discussing how those are applicable to the assessee's case or without giving the assessee an opportunity of rebuttal and, therefore, the order is not a speaking order and is liable to be declared null and void. 6. That the ld AO even assumed the power of the CCIT in bypassing the procedure laid down in the Act and has acted against the provision of Income tax Act, 19....
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....For the assessment year 2007-08 also, it is noted that by the AO in the assessment order that the assessee has applied exemption u/s.10(23C)(iiiad) and not under section 10(23C)(vi) of the Act, which was rejected and communicated to the AO. Based on this, AO found that there is reason to believe that income of Rs.9,64,550 chargeable to tax has escaped assessment. 7. Since the assessee has raised this common issue in all these appeals and adjudication of the same goes to the root of the appeals, this issue was taken up for consideration at first. 8. The assessee has raised same issue before ld CIT(A) also. Ld CIT(A) observed in the impugned orders that once the reasons are duly recorded and same are not arbitrary and irrational, the ju....
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....crutiny as they are null and void. 10. Contrary to this, ld D.R. has vehemently argued contending, inter alia, that as can be seen from the assessment orders passed by the AO, it is clear that the AO himself has reason to believe that income of the assessee has escaped assessment for the periods under consideration and hence, he has rightly reopened the assessment. Therefore, there is no infirmity in reopening of assessments made by the AO and consequently, the assessment orders passed in pursuance to reopening are very much valid and enforceable. More so, ld CIT(A) has approved this view of the Assessing Officer. Accordingly, ld D.R. sought for dismissal of the appeals raised by the ssessee. 11. On careful consideration of the ord....
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....eciding about validity of the notice under section 148 of the Act by the AO, it has to be seen as to the provisions contained in section 147 of the I.T.Act, 1961. Section 147 of the Act starts with the words "If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this secti....
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....ssessment (as was required by the provisions of section). The report of the AO to the Commissioner is that during the year, the assessee has shown to have taken loans from various parties of Calcutta. From the Director of Income Tax (Inv) No.A/P/Misc.(5) D.I./63-64/5623 dated August 13,1965, forwarded to the office under CIT, Bihar and Orissa, Patna's letter No.Inv(Inv) 15/65-66/1953-2017 dated Patna September 24, 1965, it appears that these persons are name-lenders and the transactions are bogus. Hence, proper investigation regarding these loans is necessary. The names of some of the persons from whom money is alleged to have been taken on loan on hundies are given in the letter. This communication has persuaded the Commissioner to give pe....