TaxTMI 
TaxTMI 
2022 (11) TMI 234
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....e of Rs.1,42,945/-. On the basis of AIR information, the case was selected for scrutiny under section 147 of the I.T. Act, 1961 and statutory notice under section 148 of the I.T. Act, 1961 was issued on 29.03.2016 after recording the satisfaction of Ld. PCIT, Muzaffarnagar, which was duly served upon the assessee through speed post. Thereafter, notices under section 142(1) and 143(2) of the I.T. Act, 1961 were issued on 07.10.2016 and 18.11.2016 respectively along with detailed questionnaire to the assessee. In compliance to the statutory notices issued and served, the Authorised Representative of the Assessee appeared before the A.O. from time to time and filed the required details and documents. During the course of assessment proceedings....
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....t jurisdiction besides challenging the addition on merits. 4. During the course of hearing, the Learned Counsel for the Assessee drew the attention of the Bench Paper Book Page-A which is pertains to the notice issued by the A.O. under section 148 of the I.T. Act, 1961 reads as under : "Shri Sanyog Kohali S/o Shri Amar Nath Opp. Jain Inter College Muzaffarnagar A.Y. 2009-10 Notice for Selection u/s 148 of the Income Tax Act, 1961:- As per the AIR information available with this office the assessee has deposited cash of Rs.24,73,500/- during F.Y. 2008-09. A query letter in this regard was issued by the undersigned on 12.02.2016 giving opportunity to the assessee to furnish reply on or before 26/02/2016. The l....
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....ved upon the assessee and, therefore, the assessment framed under section 143(3)/147 of the I.T. Act, 1961 cannot be sustained in the eye of law. He further submitted that since the amount deposited in the Bank A/c of the assessee is out of sale consideration, the A.O. cannot treat the amount as income from undisclosed sources in the hands of assessee. The Learned Counsel for the Assessee by demonstrating his arguments drew the attention of the Bench that the A.O. issued notice under section 148 of the I.T. Act, 1961 dated 29.03.2016 and the assessee also filed a reply before the A.O. contending, inter alia, that the impugned notice dated 29.03.2016 is not served upon the assessee being the address is incomplete and wrong, as no house, no. ....
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.... 2011 dated 14.08.2018 and all the above orders are placed on record. The Learned Counsel for the Assessee also placed on record the Judgment of Hon'ble jurisdictional Delhi High Court in the case of CIT vs., Intezar Ali vide ITA.No.162 of 2013 order dated 26.07.2013 in support of his contention that the amount deposited in the Bank A/c of the assessee is out of sale consideration and, therefore, the amount could not be treated as income from undisclosed sources. 5. The Ld. D.R. on the other hand strongly relied on the orders of the lower authorities. He submitted that since the assessee has not furnished any documentary evidences in support of his contention, the A.O. addition made impugned addition. However, in first appeal, the Ld. CI....
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....le proceeds, the authorities below cannot treat the same as undisclosed income of the assessee as observed by Hon'ble Delhi High Court in the case of CIT vs., Intezar Ali (supra). With respect to other limb of arguments of the Learned Counsel for the Assessee in the instant case, it is not in dispute that reasons recorded by the Assessing Officer for coming to the belief that income had escaped the assessment, was neither supplied by the Assessing Officer to the assessee; nor the assessment records were produced before the Ld. CIT(A) which is evident from the order of the Ld. CIT(A). The reasons so recorded, if any, have neither been provided to the Ld. CIT(A), nor is there any offer from Revenue's side to produce the same before the Income....
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....nt order lacks legitimacy. On this ground alone, the aforesaid assessment order dated 22.12.2016 deserves to be annulled. I have further noticed that the Assessing Officer has not furnished reasons for issue of notice under section 148 of I.T. Act to the assessee and the said notice is also not served upon the assessee as wrong address is mentioned. In this connection, I may point that the Assessing Officer is bound to provide reasons recorded by him for issue of notice under section 148 of I.T. Act, 1961 to the assessee as per the Judgment of Hon'ble Supreme Court in the case GKN Driveshafts (India) Ltd. vs. ITO (2003) 259 ITR 19. The ld. DR had admitted that no proceedings were pending before the AO prior to issue of notice under section ....