AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (4) TMI 20
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....and in view of the matter, The learned authority below have erred by passing the order and upholding the order without disposing the, objection of assessee against the notice U/s 148 of IT Act. 3. That on the fact and circumstances of the case and in law and in view of the matter, The learned authority below have erred by upholding the order by when the reason recorded U/s 147 of IT Act by the one officer and the notice U/s 148 of IT Act was issued by another officer different dates." 2. The following additional grounds have also been taken: "5.1 That in any view, the proceedings initiated u/s 147 of IT Act by issue of notice u/s 148 of IT Act and the assessment framed u/s 143(3) of the IT Act is wrong, illegal and bad ....
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....tained, it was found that cash was deposited and cheques were issued to various persons and those persons have shown such money as gift in their accounts. The details of the cheques issued from these account holders on their given addresses to the bank were returned back unserved. The cases of those beneficiaries were identified. There is information that the kingpin of these money laundering is one Shri Subhash Khurshiramani who had opened 100 of such account in fictitious and non exiting names deposited cash and issued cheques for hundis and gifts. The beneficiaries had obtained gift or hundis by paying, accounted cash to Shri Subhash Khushiramani who deposited them into his numerous fictitious bank accounts and then issued cheques for hu....
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....bsp; 608709.00 4. There was no other document annexed with the return. A perusal of above capital account revealed that assessee has shown a credit of Rs. 300000.00/- received as gift. The other particulars as revealed from this transaction are as under: 5. Here no gift deed has been filed by the assessee. From the perusal of above capital account, it is noticed that the assessee has not disclosed the identity of the donor, his address, name of the bank, details of the cheque/draft or other mode of receipt of alleged gift or whether the donor had money in his account at the time when alleged gift was given. Thus, the basis requirement for a sum; to be accepted as a gift has not been disclosed in the return of ....
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....erved that if an interlocutory order was not passed, the assessment proceedings would be a nullity and that such failure of the AO was, at best, an irregularity and not an illegality or a nullity. 7. This conclusion of the ld. CIT(A) is, on the face of it, erroneous. In 'GKN Driveshafts' (supra), the Hon'ble Supreme Court, in this regard, has observed as follows: "However, we clarify that when a notice under section 148 of the Income Tax Act is issued, the proper course of action for the noticee is to file return and if he so desires, to seek reasons for issuing notices. The Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of not....
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....notice under section 148 and the assessment order passed under the Act deserves to be quashed." 10. In, 'M/s Haryana Acrylic Manufacturing Company. Vs. Commissioner Of Income-tax', 308 ITR 38 (Del), it has been held that deviation from the directions issued by the Hon'ble Supreme Court in 'GKN Driveshafts' (supra) would entail nullifying the proceedings. As such, the CIT(A) is incorrect on this score also. 11. In 'KSS Petron Private Ltd. vs. ACIT', order dated 03.10.2016 in ITA No. 224 of 2014, the Hon'ble Bombay High Court has held as under: "We note that once the impugned order finds the Assessment Order is without jurisdiction as the law laid down by the Apex Court in GKN Driveshafts (supra) has not been followed, then the....