TaxTMI 
TaxTMI 
2023 (4) TMI 63
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....nal High Court in ITA No. 635 of 2016 order dated 19.07.2022 which is placed on record on pages 164 to 176 of the paper book. 2. The assessee filed additional grounds before the Tribunal on 27.03.2023 challenging legal as well as other issues as under: - "1. The notice issued under section 148 of the Act is invalid in law without obtaining the sanction as per provisions of section 151(1) of the Act on the facts and circumstances of the case. 2. The mandatory conditions to assume jurisdiction under section 147 of the Act does not exist for issue of notice under section 148 of the Act on the facts and circumstances of the case. 3. The reasons recorded for issue of notice under section 148 of the Act without makin....
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....ellant prays that the appeal may be allowed for the advancement of substantial cause of justice and equity." 3. The brief facts of the case are that the assessee company, engaged in the business of garment exports, filed return of income for the impugned assessment year on 31.10.1995 declaring total income of Rs.73,45,020/- which was processed under Section 143(1) of the Income Tax Act, 1961 (the Act). The case was selected for scrutiny and statutory notices were issued to the assessee. In response to the notice assessee filed details. After considering the submissions of the assessee the Assessing Officer (AO) passed order under Section 143(3) of the Act on 15.03.1998. The case was reopened under Section 147/148 of the Act by issuing no....
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....sued." In pursuant to the above notice issued under Section 148 of the Act the assessee filed return of income. The assessee filed revised return of income declaring Nil income. Thereafter the AO issued other statutory notices and he observed that the transfer of capital assets to the partners would amount to transfer of capital assets which would attract capital gain under Section 45(4) of the Act. The assessee filed reply and after considering the documents filed before the AO he passed the order. Since the matter before us is in third round, we think that there is no need to reproduce the in between events which are already decided by the Hon'ble Jurisdictional High Court. 4. The learned A.R. reiterated the submissions made bef....
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....e AO in pursuant to the requirement of law is null and void. In support of his argument the learned A.R. relied on the following judgements: - "i) Indian Oil Corporation v. ITO (1986) 159 ITR 956 (SC) ii) ITO v. Lakhmani Mewal Das (1976) 103 ITR 437 (SC) iii) Sitara Diamond (P.) Ltd. v. DCIT (2012) 345 ITR 91 (Bom.) iv) Multiscreen Media (P.) Ltd v. UOI (2010) 324 ITR 48 (Bombay) v) Hindustan Level Ltd. v. R.B. Wadkar (2004) 268 ITR 332 (Bom.) vi) CIT v. Ankit C Maheshwari (2014) 366 ITR 146 (Guj.) vii) CIT v. Hewlett Packard Digital Global Soft Ltd. in ITA No. 406/2007 dated 19.09.2011 viii) CIT v. M/s. Fibres & Fabrics Internationa! Pvt. Ltd. in ITA No. 310/2015 dated....
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....during the course of original assessment proceedings will bring the case within the proviso to Section 147 of the Act. In absence of the above mentioned material before the AO at the time of original assessment it cannot be said that the AO had formed own opinion about applicability of the provisions of Section 45(4) of the Act to such transfer. Therefore, the question of change of opinion does not arise. He further submitted that the information given by the Revenue audit does not constitute information and is not relevant to the issue of validity of reopening in view of the changes brought to Section 147 of the Act. As per the provisions for reopening the assessment is that the AO should have reasons to believe that income chargeable to t....