TaxTMI 
TaxTMI 
2018 (1) TMI 232
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....come of Rs. 1,82,620/ - and the assessment was completed u/s 143(3) on 24.12.2010. Subsequently the assessing officer issued the notice u/s 148 on 31.03.2013 which is one of the disputes in this appeal. The assessing officer issued the notice u/s 31.03.2013 and the same was served on the assessee on 04.04.2013. Aggrieved by the order of the assessing officer the assessee went on appeal before the Ld.CIT(A) and challenged the date of issue of notice u/s 148 which is 31.03.2013 but delivered to the post office on 03.04.2013. The contention of the Ld.AR is 31.03.2013 being the holiday, the notice u/s 148 was delivered to post office on 03.04.2013,hence the date of issue of notice has to be reckoned as 03.04.2013 but not 31.03.2013. If the same is reckoned as 03.04.2013 the notice u/s 148 was issued beyond the limit of 4 years and the approval of the CIT is required, as provided u/s 151 of I.T.Act. In the assessee‟s case, approva l was accorded by the Addl.Commissioner of Income Tax, hence in the absence of the approval from the Commissioner of Income Tax, the notice issued u/s 148 is without jurisdiction, invalid and required to be quashed. The Ld.CIT(A) allowed the appeal of th....
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.... u/s 148 on 31.03.2013 with Serial No.2166 entered in the tapal register on 31.03.2013. Though 31.03.2013 was holiday, the Ld.DR submitted that the CBDT directed the Income Tax offices to keep open the offices on 31.03.2013 for the sake of the convenience of the tax payers being it was the last day for filing the returns. Therefore, there is no dispute that 31.03.2013 was working day and Income Tax offices had worked on 31.03.2013 as per the directions of the Board. On 31.03.2013, apart from the assessee, notices and letters of communication were received by the tapal clerk for service to other tax payers. Therefore, when there are different layers working under the different officers and Tapal Section being under the control of Range Head, we are of the considered opinion that the date of delivery of notice to the despatch section should be considered as the date of issue of notice u/s 148, The date of delivery of notice to despatch section was 31.03.2013. The Ld.AR relied on the decision of Hon‟ble Gujarat High Court in the case of Kanubhai M.Patel (HUF) Vs. Hiren Bhatt Or His Successors to Office & Ors. Reported (2010) [43 DTR 0329]. In the case law relied upon by the asse....
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....n in closing stock and opening stock is at Rs. 2,04,310/ - and therefore, the unaccounted purchases would be much more than the of the above value. (b)\ In the Schedule for Purchases, the assessee has shown Hawai Straps at Rs. 23,400/-. As per the Trading Account, there were sales at Rs. 78,72,318/- and after reducing the gross profit at 20% amounting to Rs. 15,74,458/-, the net amount comes to Rs. 62,97,860/- which is the cost of finished goods in the hands of the assessee. As per the assessee the cost of finished goods is Rs. 45/- per pair, hence the total pairs sold worked out to Rs. 1,39,950/-. However the assessee has shown an amount of Rs. 25,82,350/- towards the purchase of hawai sheets at the cost of Rs. 95/- per piece. The total sheets come to Rs. 27,181/-. The manufacturer will make minimum 10 pairs per one sheet and as per the purchased hawai sheets, the total pairs or hawai cheppals would have made is 2,69,300 (2,71,810 - 2,510 not used) but as per the above calculation the assessee has shown only pairs sold at Rs. 1,39,950 and after reducing this there were 1,29,350 pairs which are not accounted for by the assessee. The unaccounted investment in the purchase of hawai s....
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....pearing for the revenue, the Ld.DR argued that the assessing officer reopened the assessment duly recording the reasons and as per the reasons recorded, the assessing officer did not examine the issues relating to the opening stock and closing stock and purchases with respect to the items recorded in the reason i.e. DOP Oils, CPW Oils, Foaming Powder etc.. and the consumption material and the production with regard to Hawai Straps which resulted in unaccounted purchases and sales as per the reasons recorded. The assessing officer also has not examined the issues with regard to Hawai sheets and formed an opinion in the original assessment order. Therefore, mere production of details and the books of accounts would not be construed as examination of the details and forming an opinion by the assessing officer. The assessing officer should examine the details and form an opinion then only it would be termed as change of opinion. Hence, the Ld. DR was of the opinion that there is no change of opinion in this case, hence, the assessing officer rightly reopened the assessment. 8. On the other hand Ld.AR argued that there is no fresh material available to the assessing officer to reopen t....
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....nted investment. Similarly, the assessing officer has analysed the Hawai sheets and estimated the total number of pairs that can be manufactured and estimated unaccounted sales. The entire analysis was made with the available information on record and there is no direct information with regard to escapement of income either in purchases or in sales. The entire information with regard to the opening stock and closing stock qualitative and quantitative purchases was already available to the assessing officer at the time of framing the original assessment framed u/s 143(3) dated 24.12.2010. 9.1. On verification of the assessment order passed u/s 143(3) dated 24.10.2010, there is no whisper with regard to non submission of any of the details called for by the assessing officer. Therefore, there is no failure on the part of the assessee w.r.t. submission of the details and having submitted the details by the assessee, it is presumed that the assessing officer has verified the same and completed the assessment. There is no other fresh material available to the assessing officer. Since the assessee has furnished the details, and the assessing officer has reopened the assessment, on the b....