2018 (12) TMI 1830

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....(A) 28, Mumbai ('the CIT(A)") erred in confirming the order dated 10/03/2015 passed by the ACIT, Circle - 17(1), Mumbai ("the AO") and in dismissing the Appellant's appeal. 2.The learned CIT (A) failed to appreciate and ought to have held, that the order passed by the AO: i.was illegal, bad in law and without jurisdiction as the jurisdictional conditions precedent prescribed by section 147 and 148 of the Income Tax Act, 1961 ("the Act") had not been fulfilled. ii.was grossly contrary to the principles of natural justice. iii.was illegal and contrary to law inter alia as the AO had passed his order solely on allegations made by the Sales Tax Department without any independent application of mind. ....

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....to be engaged in trading of silver articles, jewelry, ornaments, precious stones, marble items, glass items etc. The original return of income was filed by the assessee on 26/09/2009 at Rs. 61.66 Lacs which was processed u/s 143(1). Pursuant to receipt of certain information from Investigation Wing, it transpired that during impugned AY, the assessee made purchases from suspicious / hawala dealers for aggregate amount of Rs. 187.08 Lacs from 9 dealers, the details of which have already been extracted at para 2.2 of the quantum assessment order. Accordingly, the reassessment proceedings were initiated against the assessee by issuance of notice u/s 148 on 30/03/2014. The reasons leading to reopening has also been extracted at para 2.2. Notice....

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....per-book. So far as the legal grounds questioning the jurisdiction of Ld. AO, as raised by Ld. AR is concerned, we find that reassessment proceedings have been initiated within a period of 4 years from the end of relevant AY and the original return of income was processed u/s 143(1). Therefore, the only requirement, in such a case, to acquire the valid jurisdiction under law was that the Assessing Officer had reasons to believe that certain income escaped assessment. The tangible material in the shape of information from investigation wing came to the possession of Ld. AO who by utilizing the same formed the requisite belief that certain income escaped assessment. In our opinion, at this stage, only a prima facie opinion was required to be ....