TaxTMI 
TaxTMI 
2016 (7) TMI 1621
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....he case and the law applicable and without guided by the binding decisions of the courts and tribunals and hence liable to be set aside and quashed and declared non-est in law. 2. On the facts and in the circumstances of the case, the CIT (A)-XVIII, New Delhi has erred both on facts and n law, in upholding the illegal action of reassessment and assumption of jurisdiction illegally by the Respondent that too without issue/ served notice u/s 148 and the entire proceedings of reassessment is void ab initio, illeg.al and unauthorized by law. 3. On the facts and in the circumstances of the case, the CIT (A)-XVIII, New Delhi has erred both on facts and In !aw, in upholding assumption of jurisdiction in spite of the fact that the case is of after four year and the AO not recorded any satisfaction that there was escapement of any income by reason of failure on the part of the assessee that too without issue/ served notice u/s 148 is void-ab-initio, illegal and unauthorised by low. 4. The respondent has erred in law as the statutory requirement of section 147 to 153 of the Income Tax Act and the impugned order ought to have been set aside by the CIT(A) and failure....
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.... leave to raise further/additional grounds and documents and file paper book before the hearing of the appeal and prays for the appeal to be allowed after hearing both side." 2. Briefly stated the facts of this case are : assessee filed return declaring income of Rs. 12,790/- on 30.10.2004, processed under section 143 (1) of the Income-tax Act, 1961 (for short 'the Act') on 04.01.2005. However, on receiving information from the Investigation Wing, New Delhi that assessee is one of the beneficiaries of the bogus accommodation entries amounting to Rs. 75,00,000/-, proceedings u/s 147/148 of the Act were initiated. 3. In response to the notice issued u/s 148 of the Act, assessee has neither field any return of income nor opted to treat his return filed u/s 139(1) as reply to the notice. AO in the reasons recorded stated that there was some clerical mistake as certain single transactions were appearing in multiple resulting in working of the escaped income to the extent of Rs. 75,00,000/- which stands corrected for the purpose of completion of the proceedings. Statement of one Shri Deepak Gupta, entry operator from whom the assessee has received bogus accommodation entries, was r....
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....see contended that the AO without applying his mind and without being satisfied himself as required u/s 147 of the Act proceeded to reopen the proceedings which are bad in law and relied upon the decision rendered by Hon'ble jurisdictional High Court in Pr. Commissioner of Income Tax- 4 vs. G & G Pharma Limited in ITA 545/2015 order dated 08.10.2015 and ITAT, Delhi Bench 'H', New Delhi in case of USG Buildwell Pvt. Ltd. vs. ACIT, Central Circle 23, New Delhi order dated 15.02.2016 and order passed in assessee's own case cited as ITO vs. M/s. Roopali Marketing Ltd. by ITAT, Delhi Bench 'F', New Delhi in ITA No.2813/Del/2011 vide order dated 27.11.2015. However, on the other hand, the ld. DR for the revenue relied upon the order passed by the AO as well as the ld. CIT (A). 8. Undisputedly, it is settled principle of law that the AO is required to reach at an independent conclusion by applying his own mind that he has reason to believe that the income of the assessee has escaped assessment to assume the jurisdiction for reopening of the assessment u/s 147 / 148 of the Act. 9. Perusal of the assessment order as well as impugned order passed by the ld. CIT (A) apparently go to pro....
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....to believe that by reason of the omission or failure on the part of the assessee to make a return under S. 139 for any assessment year to the ITO or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year or alternatively notwithstanding that there has been no omission or failure as mentioned above on the part of the assessee, the ITO has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year. Unless the requirements of cl. (a) or cl. (b) of S. 147 are satisfied, the ITO has no jurisdiction to issue a notice under S. 148." The Supreme Court concluded that it was not satisfied that the ITO had any material before him which could satisfy the requirements under Section 147 and therefore could not have issued notice under Section 148." 12. Identical issue has also come up before Hon'ble jurisdictional High Court in judgment cited as G & G Pharma India Ltd. (supra) wherein Hon'ble High Court, by following the judgment delivered by Hon'ble Supreme Court, entitled Chhugamal Rajpal vs. S.P. Chali....