2017 (2) TMI 391

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....he case, the impugned assessment be kindly quashed. 2. That the Ld CIT(A) has erred and is not justified under the facts and circumstances of the case in rejecting/not accepting assessee's ground that the impugned assessment made on the basis of material and evidence gathered by the AO at the back of the assessee and without making it available to him despite specific request, was untenable and unsustainable and deserve to be quashed. 3. That the Ld CIT(A) has overlooked assessors several substantial grounds/contentions and in particular that the action taken by the AO u/s 147/148 on the basis of 'borrowed' satisfaction of another AO and not on his own satisfaction, was untenable and unsustainable in law. 4. That alternativel....

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....ta from Shri Satish Chandra Goel, an NRI relative. Besides he has also made some observation in respect of another gift of Rs. 5,00,000/- which was received by Nikhil Gupta during F.Y. 2002-03, i.e. the year under consideration, when he was minor. To this effect, the Income-tax Officer, Ward 2(1), Meerut, the AO of Nikhil Gupta informed to the ITO Ward 2(2), Meerut, the AO of assessee vide letter dated 03.03.2007. On the basis of this information, the AO of the assessee initiated proceedings u/s. 147/148 after recording the following reasons : "The ITO, Ward 2(1), Meerut, vide his office letter F.No. Nikhil/ITO/W- 2(1)/06-07/dated 03.03.2007 informed that during the course of assessment proceedings in the case of Shri Nikhil Gupta, an NRI ....

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....y Mittal, instead of alleged donor Shri Chetan Prakash Agarwal, made an addition of Rs. 5,00,000/- to the total income of assessee as bogus gift. The assessee carried the matter before the ld. CIT(A), wherein he challenged the validity of reassessment proceedings as well as merits of the addition. However, the ld. CIT(A) after considering various submissions of the assessee and different case laws, dismissed the appeal of the assessee vide impugned order. Aggrieved, the assessee is in appeal before the Tribunal. 4. Referring to grounds Nos. 1, 2 & 3, challenging validity of action u/s. 147/148, the ld. AR of the assessee submitted that the initiation of reassessment proceedings is not sustainable, having been initiated on borrowed satisfac....

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....is mind independently and therefore, the reasons being vague vitiate, the proceedings u/s. 147 of the Act. Reliance is placed on the decision of ITAT Delhi Bench in Meenakshi Overseas Pvt. Ltd. vs. ITO (ITA No. 3148/Del./2013 dated 22.03.2016). 6. The ld. DR, on the other hand, relied on the order of the lower authorities and submitted that the ld. CIT(A) has made good order, which needs no interference. 7. We have considered the rival submissions and have gone through the entire material on record and we find considerable substance in the contentions of the assessee. It is notable that the present proceedings u/s. 147/148 have been initiated merely on the basis of information, inferences and enquiries made by other Assessing Officer, i.e....