TaxTMI 
TaxTMI 
TaxTMI 
2020 (11) TMI 222
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....gs is being challenged on facts and law. 2. Because the action for the assumption of jurisdiction of reassessment proceedings and the misapplication of the jurisdiction sanction being 'a fit case for issue of notice' is being challenged on facts and law. 3. Because the action for initiation of re-assessment proceedings is unreasonable since while recording reasons, there is non-application of mind much less independent application of mind and merely relying upon investigation report by AO, further reasons recorded are vague, lacking tangible material/reasonable cause and justification. 4. Because the action for initiation of re-assessment proceedings is unreasonable since the approval granted by Pr. CIT was a mechanical app....
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....n paid amounting Rs. 1,12,500/- under section 69. 11. For any consequential relief and/or legal claim arising out of this appeal and for any addition, deletion, amendment and modification in the grounds of appeal before the disposal of the same in the interest of substantial justice to the assessee." 3. The assessee filed return of income u/s 139(1) of the Income Tax Act, 1961 on 29.09.2011 declaring an income of Rs. 8,60,660/-. After relying upon the report of Investigation Wing, proceedings were initiated u/s 147 of the Act after taking approval u/s 151 of the Act. Notice u/s 148 was issued on 31.03.2018. In response, assessee efiled the return of income on 06.10.2018 and requested the Assessing Officer to provide reasons recorded. T....
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....it is just a borrowed satisfaction and not recording the independent reasons. The Ld. AR further submitted that the Assessing Officer has not applied his mind as the information received by the Assessing Officer nowhere in reasons recorded mentioning the name of the bank, cheque number through which assessee have received the amount from the parties. In reasons recorded, the Assessing Officer merely mentioned that the assessee has received Rs. 45,00,000/- as share capital but from whom the same has been received is not mentioned. Further in reasons recorded, it is mentioned that the Assessing Officer has the information that the assessee has received Rs. 65,00,000/- from Focus Industrial Resources Ltd. while addition to share capital & shar....
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....or for investigation. The Ld. AR relied upon the following decisions: i) Madhya Pradesh Industries Ltd. vs. ITO 57 ITR 637 (SC) ii) Jay Bharat Maruti Ltd. vs. CIT 324 ITR 289 (Del) iii) PCIT vs. Manzil Dinesh Kumar Shah (2019) 261 Taxman 1 (SC) iv) PCIT vs. Manzil Dinesh Kumar Shah (2018) 406 ITR 326 (Guj) The Ld. AR further submitted that Section 151 of the Act clearly stipulates that the Pr. CIT who is the competent authority to authorize the reassessment notice, has to apply his mind and form an opinion, approval of Pr. CIT. The mere appending of the expression 'approval' says nothing. It is not as if the Pr. CIT has to record elaborate reasons for agreeing with nothing to clearly express in giving approval. At the same time....
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....tion that the assessee company has filed ITR for A.Y. 2011-12 but no scrutiny assessment u/s 143(3) was made. There is no whisper in the recorded reason that there was any omission or failure on the part of the assessee in disclosing fully and truly material facts in the return of income. The contentions of the Ld. AR that the information received by the Assessing Officer nowhere in reasons recorded mentioned the name of the bank, cheque number through which assessee have received the amount from the parties, appears to be correct in our opinion. In reasons recorded, the Assessing Officer has merely mentioned that the assessee received Rs. 45,00,000/- as share capital but from whom the same has been received is not mentioned in the said rea....