TaxTMI 
TaxTMI 
2022 (8) TMI 1013
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....that a search and seizure operation was carried out on the premises of the assessee under section 132 of the Income Tax Act on 08.01.2015. In order to give logical end to the search proceedings under section 132, a notice under section 153A dated 29.06.2015 was issued and served upon the assessee. In response to this notice, return was filed on 27.07.2012 and copy of the return has been placed on page no. 2 of the paper book. Thereafter notice under section 143(2) was issued and served upon the assessee. The ld. Assessing Officer has passed the assessment order under section 153A read with section 143(3) on 28.12.2016, copy of the assessment order is placed on page no. 21 of the paper book. This assessment order was reopened by recording the reasons and the copy of the reason is available on page no. 35 of the paper book, which reads as under:- "Government of India Office of the Assistant Commissioner of Income Tax, Central Circle-1, 6 Floor, C.R.(Annexe) Building, B.C., Patel Path, Patna F. No. ACIT/CC-l/Pat/Notice u.s. 147/2019-20/ Dated : 10.05.2019 To Smt. Pushpa Singh, r - W/o Shri Binay Kumar Singh, Panchwati, Nepali Kothi, ....
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....orities. The assessee filed return of income u/s 148, disclosing amount of Rs. 2,36,130/- on 23/04/2019, the assessee also filed written submission and requesting that copy / certified copy of reasons recorded may be issued along with the copy of satisfaction. A letter was issued to the assessee along with reason recorded for reopening u/s 148 of the Income Tax Act, 1961 for A.Y. 2012-13 with copy of the satisfaction on 10/05/2019. Notice u/s 143(2) of the Income-tax Act, 1961 was issued on 10/05/2019 requesting for compliance on 04/06/2019. The assessee raised an objection vide their letter dated 10/06/2019 claiming that they have no transaction with the above mentioned parties. During the course of hearing, the Authorised representative (A/R) of the assessee Shri Subodh Kumar Goel F.C.A appeared and produce books of account, bank statement in original. The same was verified and no transaction with M/s Chitraksh Vintrade Pvt. Ltd., Sukalyan Infratowers Pvt. Ltd. and Peacock Vintrade Pvt. Ltd. was found. Documents produced by the A/R of the assessee during assessment proceedings, reply and other documents filed by the A/R of the assessee were perused and examined. ....
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.... regarding several inter-bank transfer, it was found that the assessee- Smt. Puspa Singh (PAN- ANLPS6672A) for the A.Y. 2012-13 had been the beneficiary of an amount of Rs. 67,60,941/- in respect of large inter-bank cash/cheque/RTGS/NEFT transactions without any logical basis which involved accommodation entries by different entry operators through shell/paper companies like Chitraksh Vintrade Pvt. Ltd., Sukalyan Infratowers Pvt. Ltd., Peacock Vintrade Pvt. Ltd. etc. Subsequently, the case of Puspa Singh (PAN- ANLPS6672A) for the A.Y. 2012-13 was submitted to the Pr. CIT(Central), Patna for obtaining approval for issuance notice u/s 148 of the Income Tax Act, 1961. After obtaining approval of the Pr. CIT(Central), Patna, Notice u/s 148 of the Income Tax Act, 1961 was issued to the assessee. During the re-assessment proceedings, reason for re-opening of assessment was sought and communicated to the assessee. Thereafter, the assessee e-filed return of income u/s 148 on 23.04.2019 showing return of income of Rs. 2,36,130/-. Earlier the assessee had e-filed return of income u/s 139(1) on 27.07.2012 showing return of income of Rs. 2,36,130/-. During the assessment proc....
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....ng with corroborative evidences. Your submission may include:- (a) Narration of all credit & debit entries in the bank accounts for F.Y. 2011- 12 to support the argument that it did not found any credit entry in the bank account in the names of any entities based in Kolkata including M/s DLS Exports Pvt. Ltd. and related parties like ChitrakshVintrade Pvt. Ltd., Sukalyan lnfratowers Pvt. Ltd., Peacock Vintrade Pvt. Ltd. (b) The working of Long Term Capital Gain amounting to Rs. 67,50,080/- showing purchase, sale of scrips and related financial transactions. This is also to show-cause as to why the action u/s 263 of I.T. Act should not be initiated in your case for enhancement or modification of the assessment, or cancellation of the assessment, and direction to the Assessing Officer for a fresh assessment in your case for the assessment year 2012-13. You may alternatively file your written submission through speed post or email, by the date mentioned above, which will be treated as compliance to the show cause. It may please be noted that your non-compliance in any manner shall lead the undersigned to decide your case on merit with regard to the ....
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....be taken against the assessee or not, it is pertinent to take note of this section. It reads as under:- "263(1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it is prejudicial to the interest of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. [Explanation.- For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,- (a) an order passed on or before or after the 1st day of June, 1988 by the Assessing Officer shall include- (i) an order of assessment made by the Assistant Commissioner or Deputy Commissioner or the Income Tax Officer on the basis of the directions issued by the Joint Commissioner under section 144A; (ii) an order made by the Joint Commissioner in exercise of the pow....
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....ng Officer, he formed an opinion that such an order is erroneous in so far as it is prejudicial to the interests of the Revenue. By this stage the learned Commissioner was not required the assistance of the assessee. Thereafter the third stage would come. The learned Commissioner would issue a show cause notice pointing out the reasons for the formation of his belief that action u/s 263 is required on a particular order of the Assessing Officer. At this stage the opportunity to the assessee would be given. The learned Commissioner has to conduct an inquiry as he may deem fit. After hearing the assessee, he will pass the order. This is the 4th compartment of this section. The learned Commissioner may annul the order of the Assessing Officer. He may enhance the assessed income by modifying the order. He may set aside the order and direct the Assessing Officer to pass a fresh order. At this stage, before considering the multi-fold contentions of the ld. Representatives, we deem it pertinent to take note of the fundamental tests propounded in various judgments relevant for judging the action of the CIT taken u/s 263. The ITAT in the case of Mrs. Khatiza S. Oomerbhoy Vs. ITO, Mumbai, 10....
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....m the above principles, we deem it appropriate to make reference to the decision of the Hon'ble Delhi High Court in the case of CIT vs. Sun Beam Auto reported in 227 CTR 113 and Gee Vee Enterprises Ltd vs. Addl. Commissioner of Income Tax (99 ITR 375). In the case of Sun Beam Auto, the Hon'ble High Court has pointed out a distinction between lack of inquiry and inadequate inquiry. If there is a lack of enquiry, then the assessment order can be branded as erroneous. The following observations of the Hon'ble Delhi High Court are worth to note: "12. We have considered the rival submissions of the counsel on the other side and have gone through the records. The first issue that arises for our consideration is about the exercise of power by the Commissioner of Income-tax under section 263 of the Income-tax Act. As noted above, the submission of learned counsel for the revenue was that while passing the assessment order, the Assessing Officer did not consider this aspect specifically whether the expenditure in question was revenue or capital expenditure. This argument predicates on the assessment order which apparently does not give any reasons while allowing the ent....
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....er investigate the facts stated in the return when circumstances would made such an inquiry prudent that the word 'erroneous' in section 263 includes the failure to make such an enquiry. The order becomes erroneous because such an inquiry has not been made and not because there is anything wrong with the order if all the facts stated therein are assumed to be correct." 11. In the light of the above, let us examine the facts and circumstances of the case. A perusal of the reasons recorded for reopening, it would reveal that assessment was reopened for the reason that the assessee is a beneficiary of credit entry amounting to Rs.67,60,941/- from M/s. DLS Export Pvt. Limited and related parties like Chitraksh Vintrade Pvt. Limited, Sukalyan Infratowers Pvt. Limited, Peacock Vintrade Pvt. Limited. In response to the notice for reopening of assessment issued under section 148, the assessee has contended that she did not receive any amount from these concerns during the financial year 2011-12 and the assessee annexed the copy of the Bank statement. Ld. Assessing Officer has gone through the record and thereafter accepted the stand of the assessee. He did not make any addition to the i....
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....s judgment of the Hon'ble Supreme Court, the facts are that the assessee-company was incorporated under the Indian Companies Act, 1956. It had filed its returns for A.Y. 1994-95 to 1996-97. The assessments for these three years were completed on 27.02.1997, 12.05.1997 and 30.03.1998 respectively. In the said orders of assessment, the assessee's claim under the head "Lease Equalisation Fund" made in the return of income was accepted. Thereafter assessments were reopened and the re-assessment orders were passed on 28.03.2002. Under the re-assessments, three issues were examined:- (i) the expenses claimed for share issue; (ii) bad and doubtful debts; (iii) excess depreciation on gas cylinders and goods containers. 16. Ld. Commissioner thereafter sought to revise the assessment order. The stand of the assessee was that this action under section 263 is timebarred because the action sought to be taken is from the time limit of the re-assessment order. The revisionary order under section 263 of the Act was passed on 29.03.2004. This was passed on an issue of lease equalisation fund. The stand of the assessee was that this issue attained finality in the origin....