TaxTMI 
TaxTMI 
2015 (10) TMI 2424
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....gh cross objections, the assessees, besides supporting the orders of the ld. CIT(A), has also raised a ground assailing the validity of the assessment orders on the ground that notice under section 143(2) of the Act has not been served within the prescribed period. 3. The facts in brief borne out from the record are that in both the cases, assessments were reopened on the basis of information received from the ADI that the assessees have introduced their own money under the garb of bogus gift to purchase shares of M/s Lala Kashi Nath Seth Jewellers Pvt. Ltd. in the case of Smt. Anupama Seth and of M/s Rohit Fin Cap Securities in the case of Shri. Bharat Chandra Seth. The Assessing Officer accordingly completed assessment under section 143(....
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....t only on the basis of ADI's report but also after making proper verification. 8. The ld. counsel for the assessee, besides placing reliance upon the order of the ld. CIT(A), has invited our attention to the reasons recorded by the Assessing Officer for reopening the assessment with the submission that in the reasons recorded,the Assessing Officer has simply reproduced the information received from the Director of Income Tax vide his letter dated 31.3.2005. After reproducing the contents of the letter with the reasons recorded, the Assessing Officer has issued notice under section 148/147 of the Act. Therefore, from the reasons recorded nothing is borne out as to whether the Assessing Officer has applied his mind or not. Since the Assessin....
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...., the reopening is not valid. The ld. CIT(A) has adjudicated the issue in detail in his order in the light of various judicial pronouncements and for the sake of reference, we extract the same as under in the case of Smt. Anupama Seth:- "I have carefully considered the detailed submissions of the AR for the appellant and also gone through the order of the ITAT. It is seen that the assessment in the case of the Smt Anupma seth and Shri Bharat Chandra Seth were completed u/s 143(3)7147 vide order dated 20.12.2007 and 31.12.2007. The first para of the assessment order shows that " in this case the information has been received from DIT Investigation Kanpur vide his letter F.o. DIT (Inv) KNP/ UIO/Bogus Gift/ 02-037 2782 dated 31.03.2005. The A....
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....ng the report of the ADII Kanpur.. Thus it is clear that there was only reason to suspect on the basic of the report of the ADL. From the reasons of re-assessment, it is clear that there is only mention of ADI, Kanpur's report without any independent opinion of the ACIT-1, Bareilly because he has not seen the return of income which was with the I.T.O-I, Shahjahanpur and the same was called for at a very late stage of the re-assessment proceedings. Thus there was only borrowed satisfaction and there was no material against the assessee with the ACIT Bareilly except the report of ADI, Kanpur. The ADI, Kanpur's report in note form was not supported by any material and even the statement of the assessee. The return of income was with th....