TaxTMI 
TaxTMI 
2022 (6) TMI 256
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....ort "Act") on 14.04.2011. Subsequently information was received from ACIT-CC-2(4), Ahmadabad that during the course of search on 15.10.2013 at the premises of M/s. Dharmadev Infrastructure Ltd., a total of 36 benami accounts were identified out of which one case is that of M/s. Ravi Nirman Nigam Ltd., having account no. 10569 in the Social Cooperative Bank Ltd., This account was opened on 24.09.2009 and closed on 03.07.2012. The Assessing Officer observed that on a perusal of the bank account it is observed that assessee had deposits amount of Rs. 2,26,82,500/- which includes cash deposits amounting to Rs. 10,82,500/- during the year under consideration. Accordingly, the assessment was reopened by issue of notice u/s. 148 of the Act and the assessment was completed. Aggrieved assessee preferred an appeal before the Ld. CIT(A) and Ld. CIT(A) dismissed the appeal filed by the assessee. 4. Aggrieved assessee is in appeal before us raising following grounds in its appeal:- "1. That on the facts and circumstances of the case and in law, the Ld. AO erred in initiating proceedings u/s. 147 of the Act without appreciating the fact that information was received from the office o....
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.... right in invoking 148 instead of 153C: At the outset we would like to draw your attention to the relevant portion of the Reason to believe issued by the Ld. A.O. in AY 10-11 viz. DCIT-13(3)(1) which is reproduced as below: "Since account of M/s. Ravi Nirman Nigam Ltd. found at the premise of M/s. Dliarmadev Infrastructure Ltd. is Benami, I have reason to believe that the income of at least Rs. 2,26,82,500/-, chargeable to tax has escaped assessment for A.Y. 2010-11 by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, for that assessment year and it is fit case for issuing notice u/s. 148 of the Income tax Act, 1961." Relevant Para of Reasons for AY 11-12 is reproduced below: 3. As per the information, in the case M/s. Ravi Nirman Nigam Ltd., huge debit/credit transactions were made in its account in very short period of time pertaining to A.Y. 2011-12, which includes cash deposits and thereafter the account was closed by the entity. The details of the transactions is as under- Sr. No AY. Name of the bank and Account No Amount of total credited Cash deposits out of am....
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....Ors. v. Dy. Commr. of Income Tax, Central Circle-1 and Ors. ITA Nos. 16, 15 and 87 (Asr)/2015 "14. ....... * Kalyanji Velji HLIF Versus DCIT-Central Circle-8 (4), Mumbai And (Vice-Versa) 2021 (1) TMI 322 - ITAT Mumbai "9. ..... * Smt. Samanthapudi Lavanya v, Assistant Commissioner of Income Tax, Central Circle, Vijayawada "10.3 ..... * ACIT vs. Ws K.S. Chawla & Sons ('HUF) (ITA No. 2724/DEL/2015) - Delhi ITAT "9........ * Shri V.L. Khandge, Shri D.L. Khandge vs. ITO Ward-8(2), Pune and Vice Versa [2018 (4) TMI 1607 - ITAT Pune] "29 ......" * Karti P. Chidambararn vs. Principal Director of Income Tax (Investigation) [2021 (7) TMI 393 - Madras High Court] "83. ..... It must be noted that similar view has been taken in the following cases: * M/s. Rayoman Carriers Pvt. Ltd., v. Asst. CIT CEN CIR 12, Mumbai - 11A No. 3275/Mum/2015 & 3276/Mum/2015 * G. Koteswara Rao vs. Deputy Commissioner of Income tax, Central Circle 1, Visakhapatnam [2015] 64 taxmann.com 159 * Rajat Saurabh Chatterji v. ACIT ITA No. 2430/Del/2015 - Delhi ITAT There is no r....
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....iew of revenue authorities, to examine the matter in detail, but then reassessment proceedings cannot he resorted to only to examine the facts of a case, no matter how desirable that he, unless there is a reason to believe, rather than suspect, that an income has escaped assessment." * It is settled law that for mere verification, reopening is not permitted. Reliance can be placed on the following decisions: i) PCIT-5 vs. Manzil Dineshkumar Shah [ (2018) 95 taxmann.com 46 - Gujarat High Court] "7....... ii) Jalaram Enterprises (P.) Ltd. vs. ITO [ (2019) 104 taxmann.com 134 - Bombay High Court] In view of above submission, it is humbly requested that appeals be allowed and reassessment orders are quashed." 7. On the other hand, Ld. DR relied on the orders passed by the lower authorities and submitted that it is not clear whether the material found during search that this issue was emanating from the search materials. 8. Considered the rival submissions and material placed on record, we observe from the record that the assessment was reopened mainly on the basis of information received from ACIT, Ahmadabad that during search proceedi....
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....ny books of accounts or documents pertains or pertain to a person other than the person referred to in Section 153A, then the material must be handed over the Assessing Officer having jurisdiction over such "other person" and the Assessing Officer may issue a notice along the same lines as under Section 153A if he is satisfied that such material has a bearing on the determination of total income of such persons. Apart from the Section containing a non- obstante clause, Section 153A and 153C also provides for a mechanism whereby all pending proceedings and assessments, as on date of receipt of materials seized by the Assessing Officer, shall stand abated. 83. Therefore, upon a conspectus of the relevant provisions, it is clear that the recourse under Section 153A and Section 153C is a special procedure that gets triggered upon receipt of incriminating material post any search or requisition. The normal course of assessment and reassessment is fundamentally altered when a search or requisition takes place under Section 132/132A and the moment, the seized materials are received by the Assessing Officers, the special procedure laid out under Section 153A or Section 153C shall ....