TaxTMI 
TaxTMI 
2018 (6) TMI 1836
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.... view of the facts and circumstances, no satisfaction is recorded by the assessing officer. as required Vis 147/148 of the Act prior issuing the notice under section 147 of the Act. 3. The addition! disallowances made by the assessing officer are illegal, unjust, highly excessive and are not based on any material on record by the assessing officer. The total income of the appellant has been wrongly and illegally computed by the assessing officer at Rs.9,03,000.00 as against declared income of Rs.99,700.00. 4. That, the assessing officer has erred in making addition of Rs.6,50,000.00 on account of CASH available. The CIT (A) has also erred in upholding the same. 5. That the Assessing Officer, in view of the facts a....
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....without prejudice and are mutually exclusive to each other. 3. The brief facts of the case are that after recording reasons, notice under section 148 of the Income Tax Act, 1961 was issued on 25.2.2013. Initially the assessee objected the initiation of proceedings, which has been decided as per order passed on 14.2.2014. In response thereto, the assessee filed copy of return filed initially on 19.7.2006 with written petition dated 30.10.2013. the assessee has also enclosed chart of taxable income and copy of state of affairs (capital account, balance sheet) as on 31.3.2006. Later, notices u/s. 143(2) and 142(1) of the Act were issued calling for specific evidences and clarifications which were discussed with the A.R. of the assessee. Aft....
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....h computation for the AY 2004-05; copy of acknowledgement of ITR alognwith computation for the AY 2003-04; copy of share application form; copy of order disposing objection by the AO and copy of objections. He further submitted that notice issued u/s. 148 of the Act and reassessment order passed u/s. 147 r.w.s. 143(3) of the Act are illegal, bad in law and without jurisdiction. He further submitted that no satisfaction is recorded by the AO as required u/s. 147/148 of the Act prior issuing the notice under section 147 of the Act. He draw my attention towards page no. A to B of the Paper Book which is a copy of reasons recorded under section 148 of the Act for the assessment year 2006- 07 and stated that the AO was totally failure to record,....
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....en shown as Rs. 99,7000/-. The amount so invested in share application money needs verification. I have reason to believe that the investment of Rs. 6,50,000/- in share application money and extent of availability during the year 2006-06 is form undisclosed sources which is escaped to tax." 7.1 After perusing the aforesaid reasons recorded by the AO, I find that AO himself was of the view that the amount so invested in share application money needs verification, despite that he has the reason to believe that the investment of Rs. 6,50,000/- in share application money and extent of availability during the year 2006-07 (wrongly mentioned in the reasons recorded as "2006-06") is from (wrongly mentioned in the reasons recorded....