TaxTMI 
TaxTMI 
2021 (5) TMI 926
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....referred to as 'the Act' for short), in respect of Assessment Year 2012-13 by the Assessing Officer, on the ground that same is illegal, without jurisdiction, as prescribed under the Act. 2. Briefly stated the facts of the case are that the writ applicant being an Individual Assessee filed his return of income on 29.06.2012, declaring the total income at Rs. 4,16,300/-. On 12.03.2015, the assessment was framed under Section 143(3) of the Act. During the assessment proceedings various details were called for by the AO including the details pertaining to the bank entries and various transactions made during the year under consideration. The writ applicant vide letter dated 01.08.2014 and 22.12.2014 had furnished various details like bank p....
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....ed. The database of this office/records available has also been perused. At the same time, the information so received is also found to be from a reliable source, specific and directly relevant to assessee's case., It becomes to surface that impugned assessee have made the credit entries of Rs. 48,18,90,637/- in his bank account no.550011038370 which are unexplained in view of such specific and pointing discovery of investigation, there is a clear case of escapement of income in the hands of the assessee. Further, during the course of assessment proceedings, assessee has not submitted the facts of above mentioned credit entries made during year. Further, assessee has not shown its true income for the year. 5 & 6 : Findings of A....
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.... 8. Escapement of Income:- In view of the above facts, it is established that the assessee has not disclosed the correct and full material facts for the year under consideration and hence, I have reason to believe that credit entries of Rs. 48,18,90,367/- chargeable to tax has escaped asseessment because of non disclosure of material facts necessary for assessment for A.Y. 2012-13 within the meaning of Section 147 of the Act for A.Y. 2012-13. 9. ......It is true that the assessee has filed a copy of audited P&L account and balance-sheet along with return of income where various information / material were disclosed. However, the requisite full and true disclosure of all material facts necessary for assessment has not bee....
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....preliminary objections. Relying on the decision of GKN Driveshafts (India) Ltd, (2003) 259 ITR 19, it was submitted that the AO should have dealt with each objection and should have assigned cogent reasons for its conclusion, by passing a speaking order. In this context, it was submitted that in the case on hand, although various objections were raised against the impugned notice, yet the AO failed to take note of the objections and mechanically disposed of the same without assigning the reasons on the issues. Therefore, it was submitted that the impugned notice as well as the order disposing the objections are required to be set aside. 8. Mr. Sunit Shah, the learned Senior counsel relying upon the case of SABH Infrastructure Ltd Vs. ....
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....affidavit in reply as well as in the order of disposing of the objections, submitted that the action taken by the AO is just, legal and proper and does not warrant any interference. It was further submitted that the AO has assigned cogent and sound reasons while disposing the preliminary objections filed by the writ applicant. It was further submitted that the impugned notice has been rightly issued by invoking Section 147 of the Act as writ applicant failed to disclose the truly and fully material facts with regard to credit entries as referred by the AO in the reasons recorded for the reassessment. It was submitted that the principle of change of opinion would not be applicable in the present case as the information received after framing....
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.... reflect proper application of mind. 13. Applying the dictum as laid down by the Supreme Court in the case of GVK Driveshaft (supra), we are of the view that disposing of the objections raised by the assessee against the reasons recorded before issuance of notice under Section 148 of the Act, though not part of the statutory requirement, as prescribed under the Act, however, same is guided by the directions issued by the Apex Court. The specific objections raised by the writ applicant, produced on record at page-33 to 45 to this writ application, have not been properly dealt with by the AO. The lapse is in clear violation of the decision of the Apex Court. We are of the view that the AO has passed the order mechanically and without ap....