TaxTMI 
TaxTMI 
2016 (4) TMI 381
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.... ["the CIT (A)"] erred in confirming the action of the Assistant Commissioner of Income - tax, Circle - 6 (2), Mumbai, ["the A.O."] whereby the A.O. passed the order u/s. 143 (3) r.w.s. 147 of the Income-tax Act, 1961 ("the Act") without giving sufficient, proper and adequate opportunity of being heard to the Appellant. 1.2 It is submitted that in the facts and the circumstances of the case, and in law, the assessment order be held as bad and illegal also on the ground that the same is based on the materials that were not at all confronted to the Appellant, in spite of specific request from the Appellant in that regard. 1.3 It is submitted that in the facts and the circumstances of the case, and in law, the assessment order be held as....
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....28.10.2002 declaring total income of Rs. 65,71,260/-. The AO received an information from the CBDT on the basis of Volcker Committee appointed by the United Nations that the assessee company made illegal payment in the shape of ASFF(after sales service fee) of 177593US$ equivalent to Rs. 86,64,762/-and ITF (inland transportation Fee) OF 84100 US$ equivalent to Rs. 41,03,239/-. As matter of fact the assessee had not incurred and paid any ASFF at all whereas paid transportation charges overseas Rs. 14,26,604/- in Jordan but not inland transportation fee as informed to AO by the CBDT. The AO after recording reasons u/s 148(2) of the Act issued notice u/s 148 on 04.08.2006. Accordingly the AO framed the assessment u/s 143(3)/147 of the Act by m....
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....nsportation charges overseas which were paid in Jordan and not inland transportation fee. The ld counsel submitted before us that since the very basis of initiating the reassessment proceedings was on wrong as on the incorrect facts and the information supplied by the CBDT were used to re-open the assessment without application of mind by the AO mechanically and therefore requested that consequent order of assessment was also bad in law. Besides the AR argued that the reasons were not supplied and whatever objections the assessee filed against the re-opening proceeding were not disposed off. On merit the ld counsel submitted before us that no ASFF was charged to profit and loss account and therefore no question of disallowance and the trans....
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.... Contract fee Contract disbursed Levied ASSF Paid ASSF Inland Transportation 1956683 USD 2236233 US$ 198471 US$ 177593 US$ 84100US$ It is also apparent from note 9(c) of the accounts that the assessee had following foreign exchange earnings in the relevant assessment years:- AY Foreign Exh. Earnings 2002-03 9,10,88,263 2003-04 85,50,829 2004-05 14,92,798 From the above it is apparent that the assessee company made illegal payment in the shape of ASSF and Inland Transportation Fee , contract fee etc by inflating the cost of goods supplied to the Government of Iraq and accordingly by reasons of doing so by the assessee , income attributable to the extent of illegal....