2015 (2) TMI 733

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.... has been challenged under Section 147. The second ground urged is with respect to the absence of notice under Section 143 (2) and the third is with respect to the merits of addition of Rs. 4,84,000/-. 3. Briefly, the facts are that for AY 2008-09, the assessee had reported an income of Rs. 444/-. This was processed under Section 143 (1). Upon an enquiry and investigation report, the AO issued notice under Section 148, doubting a transaction based upon the transfer of shares and purchase by two subsequent transferees i.e. Raghubir Singh and Simranjeet Kaur. The assessment was completed with the addition of that amount to the assessee's final income. The matter was carried in appeal unsuccessfully to the CIT (A), and later, to the ITAT as....

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.... genuineness of the transaction, but also the genuineness of the transaction which preceded the one in question. 5. This Court has considered the submissions. So far as the first issue urged, i.e., legality of the notice goes, the reasons to believe recorded by the AO and duly communicated to the assessee had noted that its name figures as one of the beneficiaries of alleged bogus transactions, which had cropped up during the investigation carried out by the Directorate of Investigation, Jhandewalan. The entries relating to the transactions and the sums of money were also included in tabular statement as part of the note. CIT v. M/s Kelvinator of India Ltd, (2010) 320 ITR 561 (SC) states that the reassessment can be resorted to if there ....

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....able in the circumstances of the case because notice in the present case was not issued at all under Section 143 (2). The Court rejects this contention in view of the express terms of Section 292BB, which overrides all arguments, so long as the assessee appears in any proceedings or cooperated in any enquiry related to assessment or reassessment. In the present case, there is no doubt at all that the assessee cooperated and appeared both in the assessment as well as reassessment proceedings. Therefore, it had deemed notice of the re-assessment proceedings. Its contentions were taken into account. In such circumstances, issuance of notice is a mere empty formality. Thus, the non-issuance of notice, in the opinion of the Court, shall not viti....