2021 (2) TMI 602

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.... invalid and without jurisdiction as the said assessment is completed without complying with legal requirements of the provisions of section 147/148 of the Income Tax Act therefore such assessment is void ab initio and liable to be quashed. 2. The Ld. CIT(A) on the facts and circumstances of the case has erred in upholding the validity of impugned assessment order passed u/s 143(3)/147 of the Act after recording the fact that in the seized material from third party, the name of the appellant appears but the provision of sec I53C of the Act does not apply as the document seized don't belong to the appellant. The Ld C1T(A) has ignored the amendment to sec 153C(1) w.e.f 01.06.2015 where the seized documents from third party relating t....

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....d that the AO has relied on certain other material subsequently while disposing off objection of appellant, the material which is not discussed in the reason recorded. The AO is not entitled to support the reason recorded on the material which is not mention in the reason itself and in that case the reason suffers from either absence of relevant material at the time of recording of reason or reason not based on such material. 3.4. The action of the AO u/s 147/148 is not in accordance with the provisions of the Act as the action has been taken by the AO to verify information from investigation wing which is evident from the note of satisfaction given by Addl CIT/PrCIT u/s 151(1) of the Act. 4. The Ld. CIT(A) has erred both ....

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....same and therefore action of the AO is in contravention of the principals of natural justice. 8. The Ld. CIT(A) has erred both in law and circumstances of the cases in upholding action of the assessing officer in making an addition of Rs. 1,75,000/- being 1.75% of the alleged accommodation entries of Rs. 1,00,00,000/- is arbitrary and without basis and therefore need be quashed. 3. Representatives of both the sides were heard at length, the case records carefully perused. We also had the benefit to go through the assessment records produced by the DR. 4. On perusal of the assessment records, we found that the reasons of reopening of assessment are materially different from the reasons extracted in the assessment order. In our....