TaxTMI 
TaxTMI 
2019 (2) TMI 1663
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....and trading in gold and diamond jewellery. For the assessment year 2011-12, the petitioner had filed return of income which was taken in scrutiny by the assessing officer. He passed order under section 143(3) of the Income Tax Act ("the Act" for short) on 14.2.2014. To reopen such assessment, the Assessing Officer issued the impugned notice. In order to do so, he had recorded the following reasons:- "Reasons to believe that income chargeable to Tax escaped assessment u/S. 147 of the Income Tax Act : 1. Assessee filed return of income on 29.09 2011 declaring total income at Rs. 1,70,96,584/- The return was processed u/S. 148(1) of the Income Tax Act, 1961. Subsequently, assessment u/s 148 (8) was completed on 14.02.2014 at ....
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.... 3. It is to mention here that assessee has entered into transactions with Emerald Jewel Industry, Mayur Jewel and Raksha Bullions for which no supporting documents were provided, thus makes the transactions with these parties suspicious. 4. Further, I have also examined the information vis-a-vis the return of income of the assessee. After appraisal of the material on record there is enough reason to believe that the assessee prima facie has inflated its sales and the assessee has clearly failed to disclose all material facts for determination of income. 5. Hence, I have reason to believe that income of Rs. 33.34 crores chargeable to tax, has escaped assessment by reason of the failure on part of assessee to disclose....
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.... assessee can be examined during the course of reassessment. 5. We have heard the learned counsel for the parties and perused the documents on record. Perusal of the reasons recorded by the Assessing Officer would show that as per the information supplied to him by the investigation wing, the petitioner was maintaining a bank account of one ICICI Bank, Zaveri Bazar Branch. In such bank account, there were high value of RTGS, NEFT and cash deposit transfers. Likewise, there was outward clearing through similar modes. The debits were to the tune of Rs. 60.28 crore and credit to the tune of Rs. 60.54 crore. The information further suggests that the assessee had not submitted authentic details regarding the transactions with Emerld Jewel Ind....
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.... called upon the assessee to produce the same. There was no unilateral duty of the assessee to produce such documents uncalled for. The very foundation, therefore, for the Assessing Officer to record that the transactions were suspicious, thus, fails. 7. Second element is that the assessee had not fully disclosed the material facts since the transactions were not genuine. However, we find that the very foundation for the Assessing Officer to make such a suggestion is bereft of any material logic, thus, the later suggestion on his part, would automatically not survive. In plain terms, thus, the Assessing Officer wishes to carry out fishing inquiry through reopening of assessment which as per settled law is impermissible. 8. Additionall....