2021 (10) TMI 662

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....nt. AO has noted that assessee did not file the return of income for A.Y. 2011-12. AO therefore issued notice u/s. 148 of the Act. AO thereafter in the assessment order passed u/s. 147/144 of the Act on 30.03.2015 made addition of Rs. 2,05,50,008/- by applying Gross Profit @ 8.13% on the amount of aggregate credits of Rs. 25.27 crore (rounded off) in two bank accounts namely ICICI Bank & Canara Bank. Aggrieved by the quantum addition made by AO, assessee carried the matter before the CIT(A). CIT(A) vide order dated 27.03.2017 in Appeal No. 241/15-16 enhanced the addition of total income to Rs. 24,55,30,577/-. On such enhancement in income, CIT(A) vide penalty order passed u/s. 271(1)(c) of the Act dated 31.03.2017 imposed penalty of Rs. 8,1....

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....he Ld. AO had no 'reason to believe' to initiate the assessment proceedings under section 147 of the Act, the proceedings were initiated on highly misconceived grounds, in the nature of pretence and without any justification and on assumptions, without specifying the details or nature of the transactions and on wrong facts. (b) Any notice under section 148 of the Act was not served upon the Assessee. (c) The notice dated 24-02-2014 issued under section 148 of the Act is invalid, inter alia, because on that date the assessment proceedings, initiated by issuing various notices dated 25-07-2013, etc. issued under section 142(1) of the Act by the ld. AO, were pending. (2) The Ld. AO did not make any addition on the ground of cash ....