TaxTMI 
TaxTMI 
2016 (7) TMI 135
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....e eye of law as there are no recorded reasons to belief that income chargeable to tax has escaped assessment. 2. Without prejudice to ground no. 1 stated above, the recorded reasons are invalid and improper and, as such, the assessment framed vide order dated 30.12.2010 is bad in the eye of law. 3. For that the entire re-opening proceedings are bad in the eye of law, as such, the assessment order u/s. 143(3) r.w. section 147 dated 30- 12.2010 is liable to be quashed in the absence of proper sanction as mandated by section 151. 4. For that the re-opening of assessment for A.Y 2003-2004 is bad in law and is beyond jurisdiction inasmuch the assessment has been reopened on mere "change of opinion" on the same set of facts. 5. For that the CIT(A) ought to have quashed the entire reopening proceedings since the order was passed by the AO after expiry of the limitation period. 6. For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the addition to the extent of Rs. 1,80,000/- out of the total addition of Rs. 42,87,937/- made by the AO on account of Commission paid to M/s Kripasant Commercial....
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....isclosure all material facts necessary for assessment. But in the instant case no such fact is mentioned in the letter issued by the AO in the reasons to believe that escapement of income was because of failure on the part of assessee to disclose all necessary facts for assessment. The ld. AR has pointed out that in the absence of compliance of statutory condition render the initiation of re-assessment proceedings and issuance of notice, consequentially re-assessment order as void bad in law, illegal and without jurisdiction. Ld AR has drawn our attention towards the proviso to Sec. 147 of the Act and submitted that the Assessing Officer miserably failed to show that income chargeable to tax has escaped assessment for AY 2003-04 by reason for failure on the part of assessee to make a return u/s. 139 of the Act or in response to notice issued u/s. 142(1) or Sec. 148 of the Act or to disclose fully and truly or materials facts necessary for its assessment. Ld AR requested the Bench to quash the re-assessment proceedings as made by AO. On the other hand, Ld. DR strongly supported the order of AO and stated that expenditure claimed by assessee by way of commission to M/s Umang Credi....
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....etter before ACIT, Circle-3, Kolkata in this matter and denied having any such transaction with the assessee. They filed one affidavit dated 24-12-2007 in this matter and further denied having any such receipts of commissions. However, DCIT, C-3, Kolkata added the amount in the hand of M/s Umang Credit Capital Limited for Asst. Year 2003-04. Considering the above denial of M/s Umang Credit Capital limited, it is clear that it is not established that payments of Rs. 1,04,84,842/- by the assessee to M/s Umang Credit Capital Limited is for the purpose of his business/income. Therefore, it is not allowable. I've therefore reason to believe that income has escaped assessment for the Asst. year 2003-04 at least for an amount of Rs. 1,04,84,824/-. Hence, the case of the assessee for the Asst. Year 2003-04 is reopened U/s 147, after getting approval from CIT-XV, Kolkata on 31.03.2009. Sd/- S.Haldar (Sakar) Sikha Halder (Sarkar) Income Tax Officer, Ward-45(2), Kolkata As observed that assessee's income was first assessed u/s 143(3) on 31.03.2006 for the AY 2003-04 and further notice under section 148 of the Act was issued by AO on 1.04.2009 which is beyond the expiry of four yea....
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....cedent) - Assessment year 2007-08 - Whether mere nonmentioning of sanction accorded by authority in notice issued under section 148 would in any way be fatal to process of reopening - Held, no [Para 20] [In favour of revenue] As we observed that the facts of the cases cited by the AO are different from the facts of the case on hand. Therefore such cases shall have no bearing on the instant case. In the light of the above noted pre-position, we analysis the reasons recorded by AO in the facts of the present case and found amply clear that the AO has not made any specific allegation as mentioned there in that the income escape assessment due to failure on the part of assessee to fully and truly disclose or relevant fact necessary for assessment. In this connection we are putting our reliance in the judgment of Hon'ble Delhi High Court in ITA No.1108-1109/2010 dated 03.12.2015 in the case of CIT v. Vishishth Chay Vyapark Ltd. wherein para-20 is reproduced below:- "20. In the reasons supplied to the petitioner, there is no whisper, what to speak of any allegation, that the petitioner had failed to disclose fully and truly all material facts necessary for assessment a....