TaxTMI 
TaxTMI 
2016 (12) TMI 172
X X X X Extracts X X X X
X X X X Extracts X X X X
....ronouncements relied upon by the assessee against action of the A.O. in assuming jurisdiction u/s 147. 3. The Ld. CIT (Appeals) erred in law and on facts in not considering the written submissions and relevant evidences filed by the assessee with the appeal papers which supported the stand of the assessee against the addition made by the Assessing Officer. 4. The Ld. CIT (Appeals) erred in law and on facts in not appreciating the facts of the case with that of various cases relied upon by the assessee including that of Ms Mayawati (affirmed by Delhi High Court) wherein the ITAT had accepted the stand of the assessee that even strangers can give gifts despite the fact that many of the donors took loans and bought the proper....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... after his approval, notice u/s. 148 of the I.T. Act was issued on 26.3.2008. In response to notice u/s. 148 of the I.T. Act assessee vide her return of income declaring total income of Rs. 78,990/- on 26.5.2008. Thereafter, the AO assessed the income of the assessee at Rs. 2,79,993/- vide his order dated 21.11.2008 passed u/s. 143 and made the additions. 3. Against the Order of the Ld. AO, assessee appealed before the Ld. CIT(A), who vide impugned order dated 18.3.2013 has dismissed the appeal of the assesseee and affirmed the action of the AO on the legal issue i.e. reopening of the case u/s. 147/148 of the I.T. Act, 1961 as well as on merits. 4. Aggrieved with the aforesaid order of the Ld. CIT(A), Assessee is in appeal before the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ut describing the basic aspects of alleged transaction and in the absence of the same, whole action of the AO gets vitiated. To support his contention he submitted that the issue in dispute is squarely covered in favour of the assessee by the ITAT decision dated 09.1.2015 in the case of G&G Pharma India Limited vs. ITO passed in ITA No. 3149/Del/2013 (AY 2003-04) in which the Judicial Member is the Author. He further stated that the above decision of the ITAT dated 9.1.2015 has been upheld by the Hon'ble Jurisdictional High Court in its Decision dated 08.10.2015 in ITA No. 545/2015 in the case of Pr. CIT-4 vs. G&G Pharma India Ltd. In this regard, he filed the copies of the aforesaid decisions before the Tribunal. In view of the above, he r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssee to the tune of Rs. 2,00,300/- has escaped assessment as per provisions of section 147 of the I.T. Act, 1961." Sd/- (JP Sharma) Income Tax Officer, Sambhal 8. After going through the reasons recorded by the AO, as aforesaid, I am of the view that AO has not applied his mind so as to come to an independent conclusion that he has reason to believe that income has escaped during the year. In my view the reasons are vague and are not based on any tangible material as well as are not acceptable in the eyes of law. The AO has mechanically issued notice u/s. 148 of the Act, on the basis of information allegedly received by him from the Directorate of Income Tax (System), New Delhi. Keeping in view of the facts and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng with the return, which was filed on 14th November 2004 and was processed under Section 143(3) of the Act. Without forming a prima facie opinion, on the basis of such material, it was not possible for the AO to have simply concluded: "it is evident that the assessee company has introduced its own unaccounted money in its bank by way of accommodation entries". In the considered view of the Court, in light of the law explained with sufficient clarity by the Supreme Court in the decisions discussed hereinbefore, the basic requirement that the AO must apply his mind to the materials in order to have reasons to believe that the income of the Assessee escaped assessment is missing in the present case. 13. Mr. Sawhney took the Court thr....