TaxTMI 
TaxTMI 
2021 (1) TMI 670
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....er notice u/s. 148 of the Act, dated 31st March 2016, whereas the proceedings were pending in pursuance of notice u/s. 148 dated 29.03.2016 issued by the Assessing Officer, as stated in the Assessment Order, page no. 2. No reassessment order was passed in pursuance of notice issued u/s. 148 of the Act, dated 31.03.2016, which was duly complied by the Appellant vide letter dated 28.04.2016. Without prejudice to the above 3. The reassessment proceedings completed vide order dated 21.12.2016, are illegal, void as the Assessing Officer did not supply reasons to believe for initiating the reassessment proceedings. 4. Notice u/s. 143(2) has not been issued to the appellant after furnishing return in response to notice u/s. 148 of the Act. 5. The proceedings u/s. 147 of the Act initiated by the learned A.O. by issuance of notice u/s. 148 without recording proper reasons in accordance with Law, is totally illegal and hence liable to be quashed. 6. Violation of natural justice, inadequate opportunity, no cross examination of witnesses of the revenue made entire assessment null and void. 7. Without prejudice to above, otherwise also the p....
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....le by the ld. DR. Keeping in view, the judgment of the Hon'ble Apex Court in the case of National Thermal Power Co. Ltd. Vs. CIT (1998) 229 ITR 383, the additional ground filed by the assessee is accepted. The relevant portion of the judgment is as under: "5. Under Section 254 of the Income-tax Act, the Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. The power of the Tribunal in dealing with appeals is thus expressed in the widest possible terms. The purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example, as a result of a judicial decision given while the appeal is pending before the Tribunal, it is found that a non-taxable item is taxed or a permissible deduction is denied, we do not see any reason why the assessee should be prevented from raising that question before the tribunal for the first time, so long as the relevant facts are on record in respect of that item. We do not see any reason to restrict the power of the Tribunal under Section 254 only to decide the gr....
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....o correctly assess the tax liability of an assessee. 8. The reframed question, therefore, is answered in the affirmative, i.e., the Tribunal has jurisdiction to examine a question of law which arises from the facts as found by the authorities below and having a bearing on the tax liability of the assessee. We remand the proceedings to the Tribunal for consideration of the new grounds raised by the assessee on the merits." 5. Respectfully following the above judgment of the Hon'ble Apex Court, the additional grounds taken up by the assessee are hereby admitted. 6. The main additional ground taken by the assessee is as under: That the assessment u/s. 147 of the Act is contrary to law laid down by the Hon'ble Supreme Court in GKN Driveshafts case, without following the procedure laid down by Hon'ble Supreme Court. 7. Brief facts of the case are that the assessee filed return of income on 25.09.2009 declaring total income of Rs. 920/-. 8. Based on the information received from Investigation Wing vide letter dated F. No. DIT(Inv.)-2/u/s. 148/20.12-13/194 dated 12.03.2013 that the assessee has received share capital from the dummy companies float....
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....eunder: 16. The assessee has requested for providing the reasons recorded for issue of notice u/s. 148 of the Income Tax Act, 1961 for reassessment vide their letter dated 26.04.2016 filed before the AO on 28.04.2016. Further, the assessee has also sought the reasons recorded vide letter dated 23.11.2016. We also find that vide letter dated 04.11.2016, the AO has asked to furnish the explanation regarding the receipt of share premium but has not supplied the reasons asked hitherto. We have also gone through the letter dated 29.11.2016 wherein the objections of the assessee have been removed by the AO but the supply of reasons has not been mentioned there to. We have gone through the order sheets in assessment folder and could not find any noting pertaining to furnishing of reasons recorded to the assessee. We have also verified the records of the revenue and find that the letters filed by the assessee requesting for supply of reasons have been a part of the record. The revenue till the date of hearing could not furnish the evidence of supplying the reasons recorded to the assessee. 17. The issue of vitiation of reassessment proceedings on account of the failure of the AO to f....
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....ompany ive. M/s RBJ Infratech (P) Ltd figures in the list of beneficiaries of Share Capital Premium /Loan. The information was based on search & seizure operation conducted in the case of Jain Brothers (Sh./ Virendra Jain and Sh Surinder Kumar Jain) their group concems on 14.09.2010. The material found and seized (Annexure A-1 to A-163) from the residence of Jain Brothers includes several diaries and registers and it contains incriminating information maintained in the form of daily cash books wherein detailed day to day receipt and payments in cash/RTGS and cheques from/to different persons/firm/companies have been recorded and the assessee was found to be amongst such beneficiaries. On the basis of this Information, the then-AO Issued notice u/s 148 of IT Act for AY 2009-10 after obtaining approval from Competent Authority. Para-wise Comments on admission of additional grounds submitted below: 1. Notice u/s 148 of IT Act was issued for AY 2009-10 on 29.3.2016 to assessee company vide dispatch No.1069 and sent through speed post sticker कारà¥à¤¯à¤¾à¤²à¤¯ आयकर आयà¥à¤....