TaxTMI 
TaxTMI 
TaxTMI 
2021 (5) TMI 757
X X X X Extracts X X X X
X X X X Extracts X X X X
....additions made are null and void because of no correlation to corresponding incriminating material found during the course of extensive search operation u/s 132 of the Income Tax Act, 1961. 3.That on the facts and in the circumstances of the case and in law, Ld CIT-A has grossly erred and seriously committed a mistake in not declaring the assessment as null and void as admittedly in assesse's case, provisions of Sec 147/148 can't be made applicable when search was conducted u/s 132, as strictly excluded u/s 153A/153B/153C of the Income Tax Act, 1961. 4.That on the facts and in the circumstances of the case and in law, Ld CIT-A has grossly erred and seriously committed a mistake in not declaring the assessment as null and void as admittedly in assesse's case, as no application of mind by the Ld AO and no independent enquiry was made by Ld AO while recording the reasons u/s 147/148 of the Act. 5.That on the facts and in the circumstances of the case and in law, Ld CIT-A has grossly erred and seriously committed a mistake in not declaring the assessment as null and void as admittedly in assesse's case as the prescribed procedure was not followed while framing the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rst case : That in worst case (without prejudice) on the facts and in the circumstances of the case of law, Ld CIT(A) erred in not deleting the additions made by Ld AO applying principles of telescoping which is clearly applicable in present facts to additions made by very same orders to avoid double taxation. 12. That the Appellant prays for the grant of permission to add, alter, delete, modify, any or all of the grounds of appeal at any time on or before or during the time of hearing before the Hon'ble ITAT." 3. Since, both the appeals are identical; we are taking up facts of ITA No. 3395/Del/2019. A Notice dated 31.03.2016 under Section 148 of the Income Tax Act, 1961 was issued to the assessee company for A.Y. 2009-10 to assess the income for the year under consideration. On 13.04.2016, the company vide letter dated 13.04.2016 submitted that the ITR filed u/s 139 may be treated as ITR in response to Section 148 of the Act and filed the copy of ITR as well as the computation. The assessee also filed copy of audited balance sheet for the year 2008-09 along with notes to accounts was also submitted before the Assessing Officer. On 13.04.2016, the assessee requested for th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ix. Kantibhai Dharamshibhai Narola Special Civil Application No. 19549 of 2018 order dated 06.01.2021 (Guj. HC) x. Shri Hitesh Ashok Vaswani ITA No. 118 to 123/Ahd/2019 order dated 12.11.2020 (Ahmd. Tri.) xi. M/s Shodiman Investments Pvt. Ltd. 422 ITR 437 (Bom. HC) xii. Shri Sanjay Singhal (HUF) ITA No. 702 to 704/Chd/2018 order dated 19.06.2020 (Chd. Tri.) xiii. National Co-operative Development Corporation vs. CIT Civil Appeal Nos. 5105-5107 of 2009 order dated 11.09.2020. The Ld. AR further pointed out that the reasons itself are vague as in first para of the reasons recorded dated 29.03.2016, it is mentioned that the assessee was engaged in providing accommodation entry and in second para observed that the assessee received share capital and share premium from different parties. The approval is also mechanical and does not have proper satisfaction recorded by the competent authority. Therefore, the Assessment itself is voidab- intio. Therefore, the assessment should be quashed and the additions thereof does not sustain. 6. The Ld. DR submitted that the reasons recorded was proper and as per the provisions of the Income Tax Act, 1961. The approval and the satisf....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e that income of the assessee to the tune of Rs. 1 Crore and other income which subsequently comes to notice has escaped assessment for the assessment year 2009-10 by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for computing correct income and filing his return of income for the A.Y. 2009-10." From the reasons it can be seen that the Assessing Officer was not specific as to on what basis the Assessing Officer has the reason to believe that the income of the assessee to the tune of 1 crore has escaped assessment. In fact, in one para the Assessing Officer is observing the assessee as accommodation entry provider and in next, the assessee is treated as the receiver of the share application money. But the basis for which is not elaborated and there is contradiction in the reasons given by the Assessing Officer. Besides this the Assessing Officer has not disposed off the objections filed by the assessee prior to concluding of the assessment proceedings, but has given a general finding in the Assessment order itself which is not in consonance with the provisions of the Income Tax statute relating to disposal of the objecti....