TaxTMI 
TaxTMI 
TaxTMI 
2016 (11) TMI 1234
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..../9/2114 filed under Rule 11 of the Income Tax Appellate Tribunal Rules 1963 for admission of additional grounds. 4. The Ld. Counsel submitted that the ground raised along with the original appeal have not been properly wordings in as much as the grievance of the assessee cannot reopening of assessment, though referred to in the grounds is not coming out clearly. The Ld. Counsel further pointed out that in this situation the appellant seeks to raise following additional grounds. "1. That in the facts and circumstances of the case, the CIT(A) was not justified in upholding the assumption of jurisdiction u/s 147/148 of the Act. The preconditions of Section 147 were not met. 2. That in the facts and circumstances of the case, the CIT(A) did....
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....s decided from outside, we observe that in the grounds of appeal filed before the Tribunal at the time of filing of appeal the issue of challenging the noticed of initiation of re-assessment proceedings u/s 147 & 148 of the Act was not mentioned. However, from the impugned page 1, we note that the assessee challenged the initiation of re-assessment proceedings in the first round of appeal before the First Appellate Authority ie. CIT(A). In view of decision of Hon'ble Supreme Court in the case of NTPC Ltd.(Supra). The assessee can raise additional ground to challenge legality of the initiation of re-assessment proceedings and notice u/s 147 & 148 of the Act. Thus, respectfully following the same we are of the considered view that the add....
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....ere is nothing to believe that can be taken as material to prima facie show nexus between the reasons and escapement to income and there was not transactional material to justify assessment of jurisdiction for issuance of notice u/s 148 of the Act and for initiation of reassessment proceedings u/s 147 of the Act. 11. The Ld. Counsel placing reliance on the decisions of Hon'ble Jurisdictional High Court of Delhi in the case of Signature Hotels Pvt. Ltd Vs. ITO 338 ITR 51(Delhi) and CIT Vs. G. G. Pharma India Ltd. order dated 8/10/2015 in ITA No. 545/2015 submitted that the re-opening has to be quashed for the reason that such reasons cannot be based on any tangible material and while the reasons has been recorded without application of mind....
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....tion of mind and on this premise the assumption of jurisdiction u/s 147 & 148 of the Act cannot be held as valid, being bad in law and void ab initio. 13. Replying to the above the Ld. Dr strongly supported the action of the A.O. However, she fairly admitted that there are factual arising in the reasons recorded and present case is pertaining to Assessment Year 2003-04 whereas the Assessing Officer in Para 3 of the reasons recorded the alleged that the entries amounting to Rs. 85.50 lakhs have been taken during the Financial Year 2003-04 from group of operators which is relevant to Assessment Year 2004- 05. 14. On careful consideration of above submissions at the very outset we note that the Assessing Officer recorded following reasons fo....
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....as taken entries in its accounts in Corporation Bank. Pitampura. The entries amounting to TC85.50 lacs have been taken during the financial year 2003-04 from Group of Operators who were operating from SBP Darya ganj and SBBJ NRR and belong to group of MUKESH GUPTA ALONG WITH HIS CLOSE CONFIDANTES RAJAN JASSAL AND SURINDER PAL SINGH. Investigation Wing has made comprehensive enquiry into bank accounts of these operators and unearthed the group accounts which were used to route the unaccounted cash of beneficiaries. Thus, the assessee has ploughed back unaccounted money of Rs. 85.50L.acs in its business through the channel of accommodation entry. Therefore it is failure on the part of the assessee to disclose fully and truly all material fa....
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....eedings and issuance of notice u/s 147 & 148 of the Act for Assessment Year 2003-04. On reading of the copy of the balance-sheet as on 31/3/2003 it is amply clear that the share capital on 31/3/2004 was of Rs. 24,55,200/- where as share capital as on 31/3/2003 was of 74,88,200/- and thus the share capital during the Financial period relating to Assessment Year 2003-04 was 50,33,000/- and which has no relevance to the figure of 85.50 which was noted by the A.O in the reasons recorded. 16. In view of above noted facts and acquisition, we Assessment Year of the considered view that the A.O initiated re-assessment proceedings u/s 147 of the Act and issue notice u/s 148 of the Act in a mechanical and casual manner and by considering the irrelev....