TaxTMI 
TaxTMI 
2022 (10) TMI 978
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....fore the A.O. and filed a written reply dated 11.05.2017 stating that the assessee has sold a property which is located near Surajpur, Greater Noida and the cash sale proceed was deposited in the bank account. On perusal of the sale deed the A.O. noted that the assessee has sold plot measuring 100.33 metre in village Surajpur, Tehsil Dadri on 03.06.2009 for a consideration of Rs. 6,00,000/-. The A.O. issued notice under section 142(1) of the I.T. Act, 1961 and asked the assessee to furnish the complete source of cash deposit. The assessee filed his written replies on 25.09.2017 and 09.10.2017. The A.O., however, could not satisfy the explanations furnished by the assessee and noted that assessee failed to furnish any documentary evidences for the balance cash deposit of Rs. 15,55,000/- [Rs. 21,55,000/-- Rs. 6,00,000] and made addition of the same under section 68 of the I.T. Act, 1961 on account of unexplained cash deposit and determined the total taxable income of assessee at Rs. 16,82,520/- vide order dated 16.10.2017 under section 147/143(3) of the I.T. Act, 1961. The A.O. also initiated penalty proceedings under section 271(1)(c) of the I.T. Act, 1961 separately. 2.1. Aggrie....
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....stances of the case and in law, the approval granted under section 151 of the Income Tax Act, 1961 was not in accordance with law as it was accorded in a mechanical manner without application of mind and hence reassessment proceedings initiated is bad in law and liable to be quashed." 4. During the course of hearing, the Learned Counsel for the Assessee, at the very outset submitted that the additional ground raised by the assessee may please be admitted as it goes to the root of the matter and the entire facts are also available on record before the lower authorities. He submitted that the A.O. has reopened the assessment under section 147 of the I.T. Act, 1961 without application of mind and the approval for reopening of the assessment accorded by the JCIT, Range-2, Noida and PCIT, Noida are not in accordance with law and, therefore, prayed that the reopening of the assessment proceedings be quashed. He also drew the attention of the Bench to PB-1 and 2 regarding the reasons for initiating proceedings under section 148 of the I.T. Act, 1961 and for obtaining the approval of the CIT/Addl. CIT/JCIT. CIT which reads as under: 4.1. He submitted that it is a settled position of ....
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....rders of the Assessing Officer and CIT(A) and the paper book filed on behalf of the assessee. I have also considered the various decisions cited before me. Since the additional ground raised by the assessee goes to the root of the matter and all the material is also available before the lower authorities, I admit the additional ground raised by the assessee and decide as under. 6.1. I find that the case of the assessee was reopened under section 147 of the I.T. Act, 1961 by recording the reasons and after obtaining approval from the JCIT and the PCIT on the basis of the information received by the A.O. from the Non PAN AIR of the Department that the assessee deposited a sum of Rs. 21,55,000/- in the saving bank account during the financial year 2009-10. The reasons so recorded by the Assessing Officer has already been reproduced in the preceding paragraphs and, therefore, the same is not being reproduced here to avoid repetition. However, a perusal of the Column Nos. 12 and 13 of the Form for recording the reasons for initiating the proceedings under section 147 and for obtaining the approval of the Joint CIT/PCIT, copy of which is placed at page 1 and 2 of the paper book, revea....
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....Even AO while recording the reasons for initiating the reopening of assessment has not applied his mind independently. When we peruse the reasons recorded, available at pages 31-32 of the paper book, the entire reasons have been based on the statement of one Shri P.K. Jindal, who has furnished the list of companies stated to be not doing any business activities but engaged in providing accommodation entries. Before issuing the notice AO appeared to have not examined the profile of the said companies to arrive at a logical conclusion so as to issue the notice u/s. 148 of the Act. When this fact is examined in the light of the completed assessment of the assessee u/s. 143(3), all the documents ITA Nos. 1375, 1721, 1722, 1523 & 1524/Del/2019 concerning share application money, now available at pages 1 to 30 of the paper book, were supplied to the AO. This fact has not been taken into consideration by the AO before initiating the proceedings u/s. 147/148 of the Act. However, since reopening of assessment in this case is otherwise not sustainable, we are not entering into any merits. 14. Hon'ble Supreme Court in case cited as CIT vs. S. Goyanka Lime & Chemical Ltd. - (2015)....
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....1, 1722, 1523 & 1524/Del/2019 "Reassessment-Issuance of Notice-Sanction for issue of Notice-Assessee had in its return for A.Y. 2001-02 claimed that sum of Rs. 1 Crore was received towards share application amounts and a further sum of Thirty Five Lakhs was credited to it as an advance towards loan-Original assessment was completed u/s. 143(3)-However, pursuant to reassessment notice, which was dropped due to technical reasons, and later notice was issued and assessments were taken up afresh-After considering submissions of assessee and documents produced in reassessment proceedings, AO added back a sum of Rs. 1,35,00,000-CIT(A) held against assessee on legality of reassessment notice but allowed assessee's appeal on merits holding that AO did not conduct appropriate enquiry to conclude that share inclusion and advances received were from bogus entities-Tribunal allowed assessee's appeal on merits-Revenue appealed against appellate order on merits-Assessee's cross appeal was on correctness of reopening of assessment-Tribunal upheld assessee's cross-objections and dismissed Revenue's appeal holding that there was no proper application of mind by concerned sanctio....