TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 54
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.... are vague, unsubstantiated and not based on any tangible material and requisite approval in terms of section 151 of Income Tax Act, 1961. (ii) That the reasons to belief are merely on the basis of information from investigation wing and in absence of any independent application of mind or live nexus with any adverse tangible material, the notice u/s 148 is illegal and bad in law. (iii) That the reasons are factually incorrect and contains duplicate entries and having been recorded without proper application of mind, the same are invalid and fails to provide valid jurisdiction u/s 148 of the Income tax Act, 1961. (iv) That in any case, in absence of disposal of objections to notice u/s 148 through speaking order, the entire reasses....
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....1, Jhandewalan Extension, New Delhi dated 1.11.2013. It was informed that the assessee had involved to providing / receiving accommodation entries to / from AMR Construction Ltd. Rs. 90,08,782/- and Prakartik Hotels Pvt. Ltd., Rs. 8,00,225/-. After completing the formalities as per law the Assessing Officer issued a notice under section 148 of the I.T. Act to the assessee on 27.03.2015. In compliance of the same, assessee filed a letter dated 29.04.2015 stating that original return was filed under section 139(1) of the Act dated 03.09.2008 declaring income of Rs. 6,988/-, be treated as income filed in response to notice under section 148 of the Act. The AO also issued notice under section 143(1) of Income Tax Act on 1.9.2015 in response to ....
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....e Assessing Officer did not agree with the same and made the addition of Rs. 37,34,003/- doubting the documentary evidence filed by the assessee by holding that there was no actual purchases happened in the year under consideration and his transaction is a bogus and added back in the income of the assessee as per the provision under section 69(c) of the I.T. Act and also added Rs. 8,00,225/- on account of payment against bills issued by Prakartik Hotels Pvt. Ltd. to the assessee for supply of plant and flowers etc., and also treated the same as bogus and added back in the income of the assessee under section 69 of the Act and completed the assessment of total income of Rs. 51,35,216/- vide order dated 29.03.2016 passed under section 147 rea....
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....n the shape of paper book containing page 1 to 83 in which the assessee has attached a copy of notice under section 148 of the I.T. Act, copy of reasons recorded by the Assessing Officer before issuing notice under section 148 of the I.T. Act, copy of approval obtained under section 151 of the I.T. Act, copy of remand report dated 27.08.2018 alongwith copy of ordersheet and rejoinder filed thereon, copy of objection filed dated 12.08.2015, copy of letter filed before the AO dated 13.01.2016, document in support of M/s AMR Constructions Limited i.e. ledger account in the books of the appellant, general voucher in the books of the appellant and copy of bills. Assessee has also attached documents in respect of M/s Prakartik Hotel Private Limit....
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.... The AO has also issued notice under section 142(1) for 03.12.2015 vide ordersheet dated 20.11.2015. On 03.12.2015, the representative of the assessee appeared and AO stated that the assessee's representative has already filed objection where he sought recorded statement of the entry provider alongwith their balance-sheet, copy of account ITR etc., as this office only received copy of record of statement same is handed over to the AR for perusal and further objection if any copy of recorded reasons and approval of the higher authorities are already handed over through the assessee. The objection filed by the assessee are already disposed and the case is adjourned for 17.12.2015 but on 17.12.2015 none appeared for the parties and AO issu....
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...., we are of the considered view that in absence of disposal of objection filed to the notice under section 148 of the Act through speaking order, the entire reassessment proceedings is in disregard to the principle laid down by Hon'ble Supreme Court of India in the case of G.K.N. vs. Driveshafts (India) as reproduced above. Therefore, we declare the notice under section 148 of the Act is contrary to the law, null and void and assessment subsequently framed is also cancelled similarly the impugned order passed by the learned First Appellate Authority is also sustainable in the eyes of law, we cancel the orders passed by the Revenue authorities by deleting the addition in dispute and accepting the appeal filed by the assessee. 14. As reg....