TaxTMI 
TaxTMI 
2015 (9) TMI 895
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....see in ITA No. 1611/PN/2013 has raised the following grounds of appeal :- 1. On facts & circumstances prevailing in the case & as per provisions of law, it be held that the Assessing Officer has erred and confirmed by the 1st appellate authority be cancelled in invoking provisions of section 147 of the Act. 2. Without prejudice to ground No.1, on facts & circumstances prevailing in the case & as per provisions of law, it be held that the Assessing Officer has erred and confirmed by the 1st appellate authority be cancelled in holding & taxing alleged investment & interest income thereon in the hands of the appellant. The appellant firm denies any such investment & interest income thereon. The addition made by the Assessing Officer and confirmed by the 1st appellate authority be cancelled on these scores be deleted. 3. Without prejudice to ground 1 & 2 above, on facts & circumstances prevailing in the case & as per provisions of law, it be held that the Assessing Officer has erred and confirmed by the 1st appellate authority be cancelled in taxing alleged investment & interest income thereon in the hands of the appellant firm on guesswork & surmises without establishing or furnis....
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....e any unaccounted investment in money lending. On the basis of information received, the unaccounted income for the year under consideration was worked out at Rs. 14 lakhs and the same was added under section 69 of the Act. Further, interest earned on unaccounted investment totaling Rs. 29,900/- was added as income of the assessee. 6. Before the CIT(A), the assessee raised the legal plea challenging the invocation of the provisions of section 147 of the Act. The written submissions filed by the assessee are reproduced by the CIT(A) at pages 5 to 8 under para 4 of the appellate order. Further, written submissions on legal grounds were filed which are reproduced in para 4.1 at pages 8 and 9 of the appellate order, which are being referred to but are not being reproduced for the sake of brevity. The CIT(A) thereafter, deliberated upon the nature of documents seized and the provisions of section 153C r.w.s. 153A of the Act and observed that on the basis of seized documents, where action is initiated under section 147 of the Act held as under:- "4.6. Sec.153C clearly requires (a) seizure of money, bullion, jewellery or other valuable article or things or books of accounts ....
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.... In fact it is a more prudent approach by the Assessing Officer to issue or to initiate action u/s 147 in such cases where he has reasons to believe that income chargeable to tax has escaped assessment for any assessment year. It is also seen from the record that the appellant has never contested the reopened assessment at assessment stage before the Assessing Officer. On the contrary, all the conditions relevant to the completion of 147 proceedings are seen to be satisfied both from the side of the Assessing Officer as well as the appellant who has duly filed the return of income on 13.04.2007 in response to the notices issued u/s 148. Accordingly, Ground No.1 fails." 7. The CIT(A) also decided the issue on merits. 8. The preliminary issue raised before us is against the exercise of jurisdiction under section 147 r.w.s. 148 of the Act. 9. The learned Authorized Representative for the assessee at the outset pointed out that despite several requests, the exact reasons recorded for reopening the assessment under section 147 of the Act have not been provided to the assessee. Another plea raised by the learned Authorized Representative for the assessee was that the documents as to t....
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....Assessing Officer and the CIT(A), the assessee had asked for the issue of verbatim copy of reasons recorded in the case of the assessee. The assessee by way of application dated 20.04.2007 had requested the Assessing Officer to issue the copy of reasons recorded for reopening the assessment in terms of provisions of section 147 of the Act. The copy of the said letter is placed at page 1 of the Paper Book. At page 2 of the Paper Book, the letter issued by the Assessing Officer dated 22.11.2007 is atta ched, in which the subject is the reason for issue of notice under section 148 of the Act and it is mentioned as under:- "The information is received from the Addl. CIT, Central Range 2, Pune that you have invested at least Rs. 16 lakhs in money lending as on 31/3/2000, which were unaccounted. However, as the unaccounted investment was out of the escape income chargeable to tax as well as interest earned thereon pertains to A.Y. 2000 -01, notice u/s.148 was issued. In subsequent year i.e. for A.Y.2001 -02, A.Y. 2002-03 and A.Y. 2003-04 the interest earned on these unaccounted income were remained to taxed i.e. escaped from assessment proceedings, notices u/s 148 were issued." 12. The....
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....hin such period as may be specified in the said notice, under section 148 of the Act. The assessee after furnishing the return of income is entitled to apply for the copy of reasons recorded for the reopening of the assessment under section 147 of the Act. In the facts of the present case, it is the case of the Revenue that on receipt of information pursuant to search and seizure operations in the case of Shri Shriram Soni, reasons were recorded for reopening the assessment under section 147 of the Act and consequent thereto, notice under section 148 of the Act was issued to the assessee to furnish the return of income, which the assessee admittedly did. Thereafter, the assessee requested for the copy of reasons recorded under section 147 of the Act. The Assessing Officer vide letter dated 22.11.2007 intimated the reasons for reopening the assessment, but did not furnish the verbatim copy of reasons recorded by him for reopening the assessment. The main objection of the assessee before us is non-supply of verbatim copy of reasons recorded for reopening the assessment. 14. The Hon'ble Supreme Court in GKN Driveshafts (India) Ltd. Vs. ITO and Others (2003) 259 ITR 19 (SC) has held a....