TaxTMI 
TaxTMI 
2016 (1) TMI 28
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....CIT(A)] is bad both in the eye of law and on facts. 2(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the order of the AO rejecting the contention of the assessee that reopening the assessment under section 147 of the Act without complying with the statutory conditions and the procedure prescribed under the law is bad and liable to be quashed. (ii) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the order of the AO rejecting the contention of the assessee that the reason recorded for reopening of the assessment are bad in law and as such the reopening of the assessment is illegal and liable to be quashed s....
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.... issued u/s. 148, dated 10.8.2010. Thereinafter notice u/s. 142(1) alongwith questionnaire and notice u/s. 143(2) was issued on 7.12.2010 fixing the date for compliance therein on 20.12.2010. In compliance of these notices Sh. Mukesh Gupta, Advocate, authorized representative of the assessee and Mr. Sanjeev Kumar, Brother of the assessee attended the proceedings from time to time and furnished the necessary details and information called for. The case was also discussed with them in detail. Thereafter, the AO completed the assessment at income of Rs. 7,53,794/- vide his order dated 20.9.2011 passed u/s 143(3) of the I.T. Act, 1961. 4. Against the above order dated 20.9.2011, assessee filed an appeal before the Ld. CIT(A), who vide impugn....
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....questions / reasons recorded by the AO. I further find that in the instant case, the assessee had made full and true disclosure during the original assessment proceedings with regard to issues in dispute. Hence, I am of the view that the reopening had been done merely on change of opinion in as much as that in the original assessment made u/s. 143(3) of the I.T. Act, the AO had apparently applied his mind and had raised queries with regard to the items which have been identified by the AO in this notice u/s. 147/148 of the Income Tax Act. I also find that AO has no fresh material to form his opinion regarding escapement of assessment and he has also not found any tangible material to record the reasons for reopening of the assessment of the....
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....l Authority 'left without address'. The AO made the addition of Rs. 25,00,000/- by observing that that the loans received in the said amount by the assessee were on account of bogus entries. In the present case, it is an admitted fact that the reassessment proceedings were initiated by the AO only on the basis of information received from the Investigation Wing and no independent inquiry was made by the AO. It is also noticed that during the course of original assessment proceedings the AO, vide notice u/s 142(1) of the Act dated 04.04.2005 asked the details and confirmation for increase in unsecured loan as is evident from page no. 101 of the assessee's paper book which is the copy of the said notice. In response to the said notice, the as....
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....mpleted assessment. A statute conferring an arbitrary power may be held to be ultra vires article 14 of the Constitution of India. If two interpretations are possible, the interpretation which upholds constitutionality should be favoured. In the event it is held that by reason of section 147 the Income-tax Officer may exercise his jurisdiction for initiating a proceeding for reassessment only upon a mere change of opinion, the same may be held to be unconstitutional. An order of assessment can be passed either in terms of subsection (1) of section 143 or sub-section (3) of section 143. When a regular order of assessment is passed in terms of the sub-section (3) of section 143 a presumption can be raised that such an order has been passed....
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...., addresses, PAN, Ward Nos. etc. of all the persons from whom loans exceeding Rs. 20,000/- were obtained and repaid during the year, in the Annexure 'H' attached to the Tax Audit Report which was furnished to the AO who after making the proper inquiry and being satisfied did not make any addition in the original assessment. Therefore, the notice issued u/s 148 of the Act subsequently on the basis of information received from the Investigation Wing of the Department was on account of change of opinion and as such the reopening u/s 147 of the Act was not valid, therefore, the subsequent reassessment framed on that basis was invalid. Accordingly, we set aside the impugned order passed by the ld. CIT(A) and the original assessment framed by the....