TaxTMI 
TaxTMI 
2020 (11) TMI 222
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....nuation and conclusion of reassessment proceedings 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 unrea....
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....0. Because the action is being challenged on facts and law for making addition on account of commission 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....
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.... of the material fact containing material particulars which lacks in the present case and therefore, prima facie 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 ....
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....ed are reasons to suspect, which are not valid in the eyes of law as proceedings cannot be initiated on fishing and roving enquiries 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 'approv....
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....ere recorded on 30.03.2018 clearly set out that the re-opening in assessee's case is on the basis of the information of ADIT (Inv.)-Unit- 2(1), New Delhi. After going through the reasons there is mention 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....
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.... is for him to put his opinion on record in toto. The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide link between conclusion and evidence. The reasons recorded must be based on evidence. The reasons recorded by the Assessing Officer cannot be supplemented by assessment order, otherwise, the reasons which were lacking in the material particulars would get supplemented, by the time the matter reaches to the Court, on the strength of assessment order. Therefore, the reasons of the Assessing Officer for reopening should be based on direct and circumstantial evidence. All these asp....