2018 (3) TMI 1795

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....s and in the circumstances of the petitioner's case, the Commissioner of Income-tax (Appeals) has erred in upholding that the notice dated  26.03.2008 issued by the Assessing Officer under Section 148 of the Income tax Act, 1961 is valid. 2) That on the facts and in the circumstances of the petitioner's case, the Commissioner of Income-tax (Appeals) is wrong in upholding the addition of US $ 62,000 equivalent to Rs. 28,86,720 made by the Assessing Officer 3) That on the facts and in the circumstances of the petitioner's case, the Commissioner of Income-tax (Appeals) is wrong in upholding the action of the Assessing Officer in charging interest aggregating to Rs. 11,75,094 under Section 234A (Rs. 2,37,014) ....

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.... 31.03.2003 declaring net income of Rs. 43130/- which was processed u/s 143(1) on the same income. The assessee is involved in the UN Oil for food programme wherein he executed two Oil contracts with SOMO of Iraq. Addl.DIT, Investigation Unit -1, has stated vide letter dated 7.3.2008 as under : " As the first contract was signed on 11th February 2001 and initial amount of 62,000/- USD was paid by Masefield AG to the account of Sh. Andleeb Sehgal on 5^th March 2001 in Jordan National Bank, Jordan." 6. It is not in dispute that the AO has merely proceeded to issue the notice u/s 148 of the Act on the basis of a reference received from Investigation Wing of the Income-tax to which the assessee has raised numerous objections vide le....

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....ational Bank. On 5.3.2001, an amount of US $ 62,000 was credited to the account no.123459 of Sh. Andaleeb Sehgal and out of this, a sum of US $ 60,000 was subsequently transferred perhaps as bribe to account no.5003202 of the Iraqi Regime in Jordan National Bank, Jordan. Thus, it becomes clear from these documents and statements obtained and recorded by the Enforcement Directorate that Sh. Andaleeb Sehgal received a sum of US $ 62,000 on 5.3.2001 on account of commission for sale of Iraqi oil to Masefield AG." However, no such documents have seen the light of the day. Those documents might be perused by the AO/CIT (A) but neither those documents were referred in the impugned order nor given to the assessee nor brought before the Bench to su....

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.... those documents have not been seen by AO nor CIT (A), nor the same have been supplied to the assessee, but AO on the basis of  assumption has taken the letter received from Enforcement Directorate as a gospel truth and made addition thereof. 14. AO on the basis of surmises even stated that, "it is understandable because the facts suggest that in the instant case, only the name of Hamdaan Exports was used by Sh. Andleeb Sehgal but the money was actually pocketed by him. Further more, it is seen that Sh. Andaleeb Sehgal paid a sum of US $ 60,000 from his account to the Iraqi Regime." These findings go to prove that without an iota of evidence, addition has been made by the AO and confirmed by ld. CIT (A). 15. Hon'ble High Court of....