TaxTMI 
TaxTMI 
2023 (7) TMI 787
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.... 3. Ground 3. That on the facts and in the circumstances of the case and in law, Ld. CIT-A erred in sustaining the order passed by Ld. AO u/s 147/143(3) without appreciating that no addition has been made on the basis of reasons recorded or show cause notice. 4. Ground 4. That the assessee craves leave to add or amend any grounds of appeal before the appeal is finally heard or disposed off." 2. Briefly the facts of the case are that the assessee had filed her return of income declaring total income of Rs. 5,64,770/- which was processed under section 143(1) of the Act. Thereafter notice under section 148 was issued on 28/03/2018 which was duly served upon the assessee. In response to the notice under section 148, the assessee filed her return of income on 23/04/2018 declaring total income of Rs. 5,64,770/- as originally declared. Thereafter notice under section 143(2) and 142(1) were issued and assessment was completed under section 143 r.w.s 147 dt. 26/12/2018 wherein the addition of Rs. 12,26,510/- was made under section 68 of the Act. 3. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) wherein the assessment proceedings were ....
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....upta (2010) 48 DTR 489 (Jd Trib). 8. Per contra, the Ld. DR submitted that the assessment order itself shows that the notice under section 148 was issued by the ITR W-4(3), Ludhiana and the assessment proceedings under section 143(3) r.w.s 147 was also completed by the ITO W-4(3), Ludhiana. Further the assessee has not furnished any details with respect to the correct jurisdictional authority in support of her above argument. It was further submitted that the assessee has not raised the said ground during the course of the assessment proceedings and therefore the assessee cannot be permitted to raise the said ground at the stage for the first time before the Tribunal. 9. It was further submitted that the reasons to believe which have been recorded by the AO indicate non-application of mind by the AO as well as the approving authority. In this regard, reference was drawn to the reasons recorded by the AO prior to the issuance of notice under section 148 of the Act. It was submitted that as per the reasons so recorded, the AO has stated that the assessee has purchased shares of M/s. Twenty First Century (India) Ltd. whereas the fact of the matter is that the assessee has not pu....
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....instead of sale transaction, the AO has mentioned the purchase transaction is merely an inadvertent mistake and the same cannot be fatal to the whole of the proceedings initiated by the AO after seeking due approval from the Competent authority. 13. It has been further contended by the ld AR that the reopening has been made by the AO on the basis of statement of third party which was neither confronted to the assessee nor cross examination was allowed despite specific request. In this regard, our reference was drawn to the objection dt. 02/11/2018 filed by the assessee in response to the issuance of notice under section 148 of the Act wherein in para 8, it has been specifically requested that where the Department intend to continue with the proceedings under section 148, it is requested that the copy of the information received from the Investigation Wing alongwith all the relevant material may kindly be supplied to the assessee to enable her to lead her defense in the matter. It was submitted that while disposing off the assessee's objection vide order dt. 04/12/2018, it has been stated that the common inquiry report alongwith list of beneficiaries has been received from th....
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....o 11 of the impugned order. 16. Heard the rival contentions and perused the material available on record. Regarding the first contention which has been raised by the ld AR, section 151 provides that no notice shall be issued under section 148 by an Assessing officer, after the expiry of four years from the end of the relevant assessment year, unless the PCIT/CCIT/PC/CIT is satisfied on the reasons so recorded by the Assessing officer that it is a fit case for issuance of such notice. The essence of the said provisions is therefore recording of satisfaction by the competent authority before the issuance of notice u/s 148 by the Assessing officer. 17. In the instant case, there is no dispute that reasons were recorded by the Assessing officer on 23.03.2018 and after seeking approval from ld PCIT-3, Ludhiana, notice u/s 148 was issued to the assessee on 28.03.2018. The limited question is what's the date of the grant of such approval by the ld PCIT. As per the ld AR, the approval has been granted physically by the ld PCIT on 29.03.2018, that is, after the issuance of notice u/s 148 on 28.03.2018 whereas as per the ld DR, the approval has been granted online by the ld PCIT on....
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....oted that the Range head has recommended the issuance of notice on 26.03.2018 and thereafter, the PCIT has granted his approval on 29.03.2018. 22. We therefore find that there is clearly a mis-match between the date of grant of online approval as well as on the hard copy both by the Range head as well as the final approving authority. The physical copy of the approval under the signatures of both the authorities is available on record and has not been disputed by the Revenue and further, nothing has been brought on record by the Revenue as to why such mis-match is there in two sets of approval. Therefore, the contention of the ld DR that there is a typographically mistake while putting the date of approval by the Competent authority cannot be accepted as there is a mis-match on the dates of online and physical approval by not just one authority but by both the authorities which cannot be a mere coincidence. 23. Considering the well-established principle that the latest order of any competent authority will supersede its earlier order unless stated otherwise, in my overall analysis, I find that the Range head has recommended and granted the approval physically under his signat....
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....mmissioner, and in the absence of such, such notice is void ab initio. Considering the above, we do not find any merit in this appeal of the Revenue. It is dismissed. 26. In view of the aforesaid, the other contentions raised by the ld AR have become academic and the same are dismissed as infructuous. 27. In the result, the appeal of the assessee is allowed. ( Order pronounced in the open Court on 12. 06. 2023 ) ============= Document 1 - I.T.N.S.10 Form for recording the reasons for initiating proceedings u/s 148 and for obtaining the approval of the Pr. Commissioner of Income Tax-3, Ludhiana 1. Name & address of the assessee 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Permanent Account No. Status Ward/Circle A.Y. in respect of which it is proposed to issue notice u/s 148 The quantum of income which has escaped assessment Whether the provisions of section 147(a) or 147(b) are applicable or both the sections are applicable Whether the assessment is proposed to be made for the first time, if the reply is in the affirmative, please state:- a) Whether any voluntary return has already be....