2018 (10) TMI 1666

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.... u/s. 144/143(3)/263/147 of the Income Tax Act 1960 (hereinafter referred to as the "Act") on 31.03.2015. In this case the assessee company filed its return of income electronically on 19.08.2009 showing total income of Rs. 1608/-. The same was assessed u/s. 143(1) of the Act on returned income. Thereafter, the AO found that a letter was filed by the authorized signatory of the assessee company on 21.01.2011 stating that "during the financial year 2008-09 relevant to AY 2009-10 they have received commodities profit of Rs. 25,207/- from various sources, but the same was not booked in the accounts by mistake. Thus, escapement of identical amount of income". As a result, the case was reopened by issuance of notice u/s. 148 of the Act and subse....

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....inal opportunity to the assessee a letter dated 13.03.2015 along with a summon u/s. 131 of the Act was issued for personal appearance of the Director of the assessee company on 13.03.2015 wherein the assessee's director was directed to produce all the share allottee parties to prove their identity, genuineness of the transactions and to establish their creditworthiness along with ROC details of the allottee company, bank statement, books of accounts, cash book/bank book and copies of the AGM meeting. According to AO, since there was no compliance from the part of the assessee company to the direction dated 13.03.2015, he proceeded to complete the assessment to the best of his judgment u/s. 144 of the Act on the basis of the details and info....

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....proper opportunity was given to assessee by AO during the reassessment proceedings and so we are, therefore, of the opinion that assessee did not get proper opportunity before the AO during reassessment proceedings. The Hon'ble (three judge bench) of the Hon'ble Supreme Court in Tin Box Company Vs. CIT (2001) 249 ITR 216 (SC) has held as under: "It is unnecessary to go into great detail in these matters for there is a statement in the order of the Tribunal, the fact-finding authority, that reads thus : "We will straightaway agree with the assessee's submission that the Income-tax Officer had not given to the assessee proper opportunity of being heard." That the assessee could have placed evidence before the first appell....

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.... CIT after looking into the pernicious practice of converting black money into white money has given the guidelines to AO as to how the investigation should be conducted to find out the source. Since similar order of the Ld. CIT passed u/s. 263 of the Act has been upheld by the Tribunal as well as by the Hon'ble Calcutta High Court as well as the SLP has been dismissed by the Hon'ble Supreme Court, similar order of the Ld. CIT has to be given effect to as directed by the Ld. CIT. We take note that the Ld. CIT with his experience and wisdom has given certain guidelines in the backdrop of black money menace should have been properly enquired into as directed by him. The AO ought to have followed the investigating guidelines and method as dire....

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....er inquiry, could not have closed the chapter simply by allowing the appeal and deleting the additions made. It was also the obligation of the first appellate authority, as indeed of ITAT, to have ensured that effective inquiry was carried out, particularly in the fact of the allegations of the Revenue that the account statements reveal uniform pattern of cash deposits of equal amounts in the respective accounts preceding the transactions in question. This necessitated a detailed scrutiny of the material submitted by the assessee in response to the notice under Section148 issued by the AO, as also the material submitted at the stage of appeals, if deemed proper by way of making or causing to be made a 'further inquiry' in exercise of th....