TaxTMI 
TaxTMI 
2021 (6) TMI 974
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....cussion to this effect reading as under: "4.1 The present appeal is against the reassessment order dt. 27.03.2014. Prior to the reassessment order u/s. 143(3) r.w.s. 147 dt. 27.03.2014, assessment order u/s. 143(3) dt. 11.11.2009 was passed in the case of the appellant, for A.Y. 2007-08. Vide letter dt. 19.09.2016 of this office, the AO was requested to forward the assessment record in respect of the proceedings u/s. 143(3) completed- vide order dt. 11.11.2009. Reminders dt. 24.02.2017, 27.02.2017 and 03.03.2017 were issued requiring the said record. A final reminder dt. 13.03.2018 was also issued. Till date, the assessment record is not received. However, as part of the written submissions (paper book), the appellant. furnished copies of the correspondence relating to the proceedings u/s. 143(3) completed vide order dt. 11.11.2009. As mentioned earlier, the paper book of the appellant was forwarded to the AO, for comments. 5. The grounds of appeal nos. 2 to 5 relate to the contention that the reassessment proceedings u/s. 147 are not valid in law. 6. In the course of the appeal proceedings, the appellant furnished written submissions dt 30.12.2015 and th....
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....Mandi Ltd. Vs DCT (2015) 126 DTR 320 (Guj) Kind attention of CIT(A) is drawn to the submissions made in Para 1.2 above which clearly support the Appellant's contention that she had filed all the material facts, touching upon the issues sought to be reopened, during the original assessment proceedings. The (a) Original Return of Income & Statement of Total Income, containing the claim of exemption in respect of gain on sale of agricultural land, filed therewith (Page 40 to 42 of this Paper Book), (b) a detailed explanation concerning the sale of agricultural land, together with necessary documentary. evidence, filed during the course of original assessment proceedings in response to the specific query raised by the then AO (Page 43 and 45 to 47 of this Paper 'Book), (c) copies of bank account statements (Kindly refer to Page 44 of this Paper Book), into which all the gifts/loans, sought to be verified during the reassessment proceedings, were credited (d) Capital Account & Statement of Affairs (Page 52 & 53 of this Paper Book), (e) Affidavit in respect of gift received from the Appellant's brother (Page 48 & 49 of this Paper Book) and (f) the books of account, p....
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....e same material which was available on record and considered by the A.O. This clearly indicates that the re-assessment was based on the same material which was available on record and considered by the AO. This clearly indicates that the re-assessment was prompted by mere change of opinion, which is not permissible in law. The hon'ble Apex Court held in the case of CIT Vs Kelvinator India Ltd- 320 ITR 561 (SC), that the re-opening on mere change of opinion is bad in law. In this regard, it is humbly submitted that the question as to what constitutes "Change of Opinion" has been examined by the Full Bench of the Hon'ble High Court of Delhi, in the case of CIT Vs Usha International Ltd. 348 ITR 485 (Del). The Hon'ble High Court, after elaborate discussion on the principles laid down by various courts on the subject matter, held that for determining whether or not there is "change of opinion ", the fact that the assessment order is silent is not relevant because the assessee has no control over the way the order is written. It was further held, vide para 27 of the said order, that whether or not the Assessing Officer had applied his mind and examined the subject matter, cl....
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....ent. Further, the issues mentioned therein, per se, could not lead to a belief that certain income escaped assessment and at best they fall within the realm of suspicion, surmises, and conjectures requiring further verification. In fact, the AO himself admitted that the proceedings were initiated to verify such issues. The relevant portion of the reasons communicated is extracted hereunder: (Kindly see page 59 of this Paper Book) "Therefore, in order to verify the above facts, the case is reopened for the AYs 2007-08, 2008-09 & 2009-10." Thus, the reassessment proceedings were admitted to have been initiated by the AO in order to verify and thereby to clear the cloud of suspicion as to whether the claims of the Appellant: were genuine, which is not permissible in law. (iv) The Hon'ble Supreme Court, in the case of GKN Driveshafts, and various High Courts Laid down' certain principles as to the procedure to be followed on reopening the assessments. As per such principles, whenever an assessee raises objections to the initiation of reassessment proceedings, it's the bounden duty of the AO to deal with such objections and accordingly pass a speak....
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....ellant which is available at page 57 to 59 of the paper book. The reasons for reopening of the assessment are as below. 'On verification of the record, the following points were observed in your case, i.e. Smt. M Vani w/o M Ramesh Reddy for the AY 2007-08, 2008-09 & 2009-10. A. Gifts received from your brother J Vikram, NRI on various dates Sl.No. Amount - Rs. 1. 19,73,684/- 2. 28,40,639 3. 8,17,265/- 4. 8,17,311/- 5 12,30,054/- The above gifts received are not occasional. B. Loans received from the friends on various dates for AY 2007-08 Sl. No. Amount-Rs. Received from Remarks 1. 1,98,869 G.Sanjeev Reddy No confirmation letter/No repayment 2 1,49,464 - Do - - Do - 3 11,36,869 - Do - - Do - 4 11,14,387 - Do - - Do - 5 2,20,790 - J Vinod - Do - 6 2,20,790 - Do - - Do - 7 10,00,000 Gopal Reddy - Do - 8 25,00,000 T Nanda K - Do - c) Sale of acres 9.36 gts at Bulkapur, Shankarpally, Ramachandrapuram Municipality, R.R. District for Rs. 99.00 lakhs: Smt. M. Vani purchased acres 9.36 gunta....
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....After considering the written submissions and paper book of the appellant, the AO has stated that no additional evidence has been filed and that the case may be decided' on facts. 9.1. In the case of the appellant, an assessment u/s. 143(3) was already made on 11.11.2009, for A.Y. 2007-08. A copy of the order has been furnished by the appellant which is available at pg. 54 to 56 of the paper book. On perusal of the reassessment record it is seen that the reasons, for reopening the assessment, were recorded on 12.11.2012. On page 2 of the reassessment order dt. 27.03.2014, it is noted that notice u/s. 148 was issued and in response the appellant filed a letter dt. 13.12.2012 requesting to treat the return filed on 05.07.2007 as the return filed in compliance of notice u/s. 148. Therefore, four years have expired from the end of the relevant assessment year when notice u/s. 148 was issued; 9.2. In view of the above, the first proviso to Section 147 is attracted and no action shall be taken u/s. 147 after the expiry of 4 years from the end of the relevant assessment year unless any income chargeable to tax has escaped assessment by reason of the failure on the pa....
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....ricultural land, loans advanced, cash deposits in bank account and plots given for development purposes. On perusal of the paper book, it is seen that the loans and the gifts received and transaction relating to sale of agricultural land were verified in the course of the original assessment proceedings. The material facts relating to loans advanced, cash deposits in bank account and plots given for development were disclosed in the course of the original assessment proceedings and were all available before the AO. 9.7. Some of the documents, forming part of the paper book, which were furnished in the course of the original assessment proceedings are, as below. (i) Copy of return of income filed on 05.07.2007 (pg. 40) (ii) Statement of computation of total income (pg. 41 & 42) (iii) Letter addressed to the AO with details of agricultural income, sale of agricultural lands and proof for the same. Details of short term capital gains and copies of bank statements (pg. 43 & 44) (iv) Letter addressed to the AO With confirmation for gifts received, proof for agricultural lands and 'proof for distance of the lands from the municipal corpora....
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....nd circumstances discussed, as above, the proceedings u/s. 147 cannot be sustained as valid in law. Accordingly, the grounds of appeal nos. 2 to 5 are allowed" 3. The Revenue vehemently contended during the course of hearing that the CIT(A) has erred in law and on facts in quashing the impugned reopening as not sustainable. It's case is that this is an instance of Anti Corruption Bureau (ACB)'s proceedings which could see light of the day only after the specified period of four years from the end of the relevant assessment year thereby prompting the Assessing officer to take recourse to sec. 147/148 proceedings by recording the necessary reasons. We see no merit in Revenue's instant arguments. It is evident from a perusal of the Assessing officer's reopening reasons recorded in assessee's case that he has nowhere recorded any reasons to believe that the assessee had not truly and fully disclosed details of her taxable income. The CIT(A) has already considered various judicial precedents (supra) whilst deciding the instant legal issue in assessee's favour. Coupled with this, we also wish to quote hon'ble Bombay high court's decision in Hindustan Le....
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....f unexplained bank deposits addition of Rs. 1,44,00,000/-. The CIT(A)'s detailed discussing deleting the same reads as under. "8.1. The material available on record has been perused. Non filing of foreign inward remittance certificates is not relevant at all as the amount under consideration was transferred from the bank account of the creditor, at Guntur. The AO has not disputed facts and documents, furnished by the appellant, while explaining the credits in the bank account. It is a fact that the amounts were received through banking channels. The appellant furnished confirmation letter j notarized affidavit with all the relevant particulars of the creditor like name, address, date and mode of payment and sources of income. By furnishing the relevant details, with supporting documents, the appellant has discharged the primary onus cast in terms of Section 68. 8.2 With the factual position, as above, the AO has not indicated any valid reasons for rejecting the explanation and evidence filed by the appellant. The AO has also not asked the appellant to furnish any further relevant details. No independent enquiries have been caused and no material, adverse to th....