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2023 (9) TMI 94
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....0042516778), Himayat Nagar Branch during the A.Y 2017-18. Since the assessee has declared his income at Rs. 36,21,770/- and has not declared the cash amount of Rs. 60.00 lakhs deposited in the Bank A/c, the Assessing Officer invoked the provisions of section 147 of the I.T. Act by recording the following reasons given in the notice issued u/s 143(2) and accordingly reopened the assessment after obtaining necessary approval from the Add. CIT (International Taxation)-2 Hyderabad: "As per the information available with this office, the assessee has made a huge cash deposit of Rs. 60,00,000/- in his bank account maintained with Axis Bank (Current Account # 916020042516778) Himayath Nagar Branch during AY 2017-18. In the ITR for AY 2017-18, the assessee has declared his total income as Rs. 36,21,770. The cash deposits made by the assessee during AY 2017-18 is Rs. 60,00,000. Therefore, the cash deposit is far in excess of the sources of income declared by the assessee. The return of income was only processed u/s. 143(1) of the I.T Act 1961. As the case has never been taken up for scrutiny, there is an under assessment of income to the extent of Rs. 60,00,000." 4. The Assessin....
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.... assessment proceedings were barred by limitation u/s 153 of the IT Act, 1961. 2.6.3 On 04-03-2020 the JAO issued notice U/s 148 of the IT Act,1961. The assessee filed Return of income in response U/s 148 of the IT Act,1961 on 14-03- 2020. 2.6.4 The reasons recorded for re-opening the assessment were communicated to the assessee as per notice ü/s 143(2) r.w.s 147 of the IT Act,1961 dated 4-1-2020. The AO is in compliance of the case law GKN Driveshafts (India) Ltd. vs. TO in civil appeal no. 7731 to 7737 of 2002(SC). 2.6.5 We note that the limited scrutiny Assessment proceedings U/s 143(3) initiated by ITO Karimnagar, ACIT, Circle-6(1), Hyderabad and finally by ADIT (International Taxation)-2, Hyderabad is barred by limitation. The JAO invoked the provision of section 147 of the IT Act, 1961 as the assessing officer had Reasons to believe that any income chargeable to tax has escaped assessment for the relevant Assessment Year. The JAC had reasons to believe that income has escaped assessment. The reasons were communicated to the assessee as follows: "AS per the information available with this office, the assessee has made a huge cash deposi....
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....147 the above reply dated 23-02-2021 is the new information to the AO that the money belongs to the late father and late brother. In the reply it is only a statement made by the assessee without any proof or evidence 2.6.10. On merits of the submission there is no evidence that the money of Rs. 60 lacs belong to his late father and brother. The assessee has failed to prove that the money belongs to his late father and late brother. The ownership of the money is not proved with any tangible evidence. Therefore, as per Indian evidence act when any money, bullion, Jewellery any valuable article or thing are or is found in the position or control of any person it is presumed that it belongs to such person. The claim of the assessee that Rs. 60 lacs is inherited from his late brother and late father is without any legal evidence. 2.6.11 The cash of Rs. 60 Lacs/- is deposited in the assessee's own Axis bank current account and therefore, the assessee is liable to explain the source of the cash deposit. 2.6.12 Therefore, the claim that the money being inherited and is a hereditary income is hereby rejected on lack of any evidence and on merits. 2.6.....
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....of such action as *Completion of any proceedings or * passing of any order or * issuance of any notice, * intimation, notification, Sanction or approval, * or such other action, by whatever named called, under the provision of the specific Act, or.. The date is extended to 31^st March 2021. 2.4.3 The service of notice U/s 143(2) falls under such other action, by whatever named called by an authority... 2.4.4 Therefore, the notice was served as per the RELAXATION OF CERTAIN PROVISIONS OF SPECIFIED ACT Gazette of India notification dated 29-09- 2020. 2.4.5 We note that the date is extended to 31^st March 2021 as per above mentioned Gazette notification. The notice dated 04-11-2020 is served on the assessee within the time limit. We reject this ground of objection. 2.7 Ground of objection No. 7 Objection No. 7.1: The Ld. Assessing Officer erred in applying the provisions of sec. 69A of the IT Act, 1961, though the said provisions are not applicable to the assessee who need not maintain books of accounts as an employee in foreign Country. 2.7.1 Having considered the submissions, ....
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....ating8 scrutiny assessment proceeding u/s. 143(2) and the scrutiny proceedings were "Closed" without passing any order u/s. 143(3). There is no provision for the assessing officer to close the assessment proceedings without passing order u/s. 143(3) and hence the assessment is to be treated as barred by limitation u/s. 153. 4. The Appellant filed the return of income on 14/03/2020 after receiving the notice u/s. 148. On 16/03/2020, the assessee filed a letter requesting for reasons recorded before issuing the notice u/s. 148. The assessing officer has not given the reasons recorded as per the procedure laid down by the Hon'ble Supreme Court in the case of GKN Drive Shafts (India) Ltd Vs. ITO in civil appeal no. 7731 to 7737 of 2002 within the reasonable period. The learned assessing officer mentioned that the "issues as per reasons recorded for reopening" in the notice u/s. 143(2) read with sec. 147 of the income tax act 1961 dated 04/11/2020 and saying in the assessment order that the reasons were already given. The Assessee contests that reasons recorded before issuing the notice u/s. 148 and not before reopening the assessment. The contents mentioned in the....
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....nce act which says about the "Position or Control" is in correct. The Appellant explained that the money belongs to his late kith and kin and inherited by him and other survivors and deposited the same in bank account. The provisions of sec. 69A does not speak anything about the money deposited in Bank and there are about other items mentioned in the Section for which bank will not come into picture and hence, meaning of ownership is to be taken that it should be in physical position. Hence the contentions on imagination of the assessing officer are incorrect and erroneous. 8. The view of the Assessing officer in the Assessment order u/s. 147 read with sec. 144C(13) in page 16 that the filing of Return of income against the notice u/s. 148 leads to treat the appellant has took part the proceedings is incorrect. Filing of return of income in response to notice u/s. 148 is responsibility of the assessee. It cannot be treated that the proceedings are accepted and the assessee should not ask any thing regarding the reasons for reopening the assessment. 9. Cash Deposited in the bank account cannot be treated as income of the assessee or investment of the assessee. It i....
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.... assessment proceedings such as providing reasons recorded before issuing notice u/s. 148 and invoking sec. 147. The learned assessing Officer also not followed the SOP in issuing and serving of notice u/s. 143(2) read with Sec. 147 as per the case law of the Hon'ble Supreme Court in ACIT and Anr. Vs. Hotel Blue Moon (2010), 321 ITR 362 (SC). It is also stated by the learned assessing Officer that the decision of Hon'ble Supreme Court in the case of CIT Vs. Tarazen Tea Co. Private Limited, Appeal (Civil) 1941 of 1993 reported in 2FORM ITR 447(SC) date of Judgement 04/02/1999 is not applicable to the assessee's case and it is incorrect. 13. The Learned Commissioners of Income tax (Members) of Dispute Resolution Panel have stated in Para 2.6.13 and 2.6.14 at page 5 of their proceedings u/s. 144C(5) have mentioned that the case laws relied by the assessee are distinguishable in facts and in law and are not applicable in the case of assessee is incorrect. In the case of CIT VS. Tarazen Tea Co. Private Limited, Appeal (Civil) 1941 of 1993 reported in 236 ITR 447(SC) date of Judgement 04/02/1999, wherein it was held that: "Information which was with the AO a....
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....ng the cash deposits made by the assessee during the year and accordingly notice u/s 143(2) of the Act dated 9.8.2018 was issued by the Assessing Officer being the Income Tax Officer Ward-2 Karimnagar, copy of which is placed at pages 26 to 29 of the Paper Book. Referring to page No.30 to 32 of the Paper Book, he drew the attention of the Bench to the notice issued u/s 142(1) wherein Annexure was attached to the notice asking the assessee to give details of cash deposits by the assessee in his Bank A/c. Referring to Pages 33 to 44 of the Paper Book, he submitted that the assessee had filed detailed reply before the Assessing Officer challenging the validity of the jurisdiction of the Assessing Officer as well as explaining the source of such cash deposits in the bank a/c. Referring to page 43 of the Paper Book, the learned Counsel for the assessee drew the attention of the Bench to the screenshot of the I.T. Website according to which the assessment proceeding u/s 143(3) is closed. Referring to page 44 of the Paper book, he submitted that the notice u/s 148 of the I.T. Act was issued to the assessee on 4.3.2020 in response to which the assessee filed his return of income on 14.3.20....
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....reasons makes the reopening a nullity. He accordingly submitted that the reopening of the assessment should he held as not in accordance with law and accordingly the same should be quashed. 16. The learned DR, on the other hand, strongly opposed the arguments advanced by the assessee. He submitted that although the notice was issued u/s 143(2) by the Income Tax Officer Ward-2 Karimnagar on 9.8.2018 and served through email of the assessee, however, the Assessing Officer subsequently transferred the case to Range-6 Hyderabad as per the address in the return of income. The Income Tax Officer Ward-6 Hyderabad transferred the case record to the ACIT Circle 6(1) on 23.8.2018 who vide notice u/s 142(1) dated 17.9.2019 called for certain information. However, subsequently when it was found that the assessee is an NRI working as a Doctor by profession and residing in Kuwait, the case was transferred to the Dy. CIT (International Taxation)-2 Hyderabad. Since the jurisdiction of the assessee falls under the Assessing Officer of the International Taxation Division, the original proceedings were dropped and notice u/s 148 was issued by reopening the case after due approval by the superior a....
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..... Under these circumstances, we have to see as to whether the reopening of the assessment for escapement of income of Rs. 60.00 lakhs is correct or is justified when the case was selected for limited scrutiny for verification of the cash deposits in the Bank A/c on the basis of the return of income filed originally u/s 139(4) of the I.T. Act and proceedings u/s 143(3) were dropped/closed without passing any order u/s 143(3) of the Act. 22. We find the Hon'ble Delhi High Court in the case of KLM Royal Dutch Airlines (Supra) has held that once an inquiry has been initiated by the Assessing Officer, it cannot but result in either the return being accepted as having been correctly computed by the concerned assessee, or in an assessment being conducted and concluded thereon by the Assessing Officer. 23. We find the Hon'ble Calcutta High Court in the case of Mohindra Mohan Sirkar (Supra) has quashed the re-assessment proceedings holding that it is the duty of the A.O to pass an assessment order and held where the Income Tax Officer acted on the returns filed by the assessee, issued notices u/s 143(2) and heard the assessee u/s 143(3), but, without completing the assessment,....
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....¤¸, Sir / Madam/M/s. आयकर अधिनियम, 1961 की धारा 143(2) के अधीन नोटिस Notice under section 143(2) of the Income-tax Act, 1961 सीमित संवीकà¥à¤·à¤¾ (कंपà¥à¤¯à¥‚टर आधारित संवीकà¥à¤·à¤¾ चयन) Limited Scrutiny (Computer Aided Scrutiny Selection) आपको सूचित किया जाता है कि निरà¥à¤§à¤¾à¤°à¤£ वरà¥à¤· 2017-18 के पावती संखà¥à¤¯à¤¾ 420847900030318 के अनà¥à¤¸à¤¾à¤° आपके दà¥à¤µà¤¾à¤°à¤¾ दिनांक 03/03/2018 को दाखिल की गई आयकर वà....
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....°à¥‚प मे incometaxindiaefiling.gov.in पर अपने ई-फाइलिंग खाता दà¥à¤µà¤¾à¤°à¤¾ पà¥à¤°à¤¸à¥à¤¤à¥à¤¤ किया जाना है। बाद की निरà¥à¤§à¤¾à¤°à¤£ कारà¥à¤¯à¤µà¤¾à¤¹à¥€ à¤à¥€ आयकर विà¤à¤¾à¤— की 'ई-कारà¥à¤¯à¤µà¤¾à¤¹à¥€' सà¥à¤µà¤¿à¤§à¤¾ दà¥à¤µà¤¾à¤°à¤¾ की जायेगी। 'ई-कारà¥à¤¯à¤µà¤¾à¤¹à¥€' पर à¤à¤• संकà¥à¤·à¤¿à¤ªà¥à¤¤ नोट आपके संदरà¥à¤ के लिठसंलगà¥à¤¨ है। 3. The evidence/information specified above has to be furnished online electronically through yo....
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....अल रूप से (यदि ई-मेल उपलबà¥à¤§ नहीं है) की जाà¤à¤—ी। 5. Please note that para 3 is applicable if you have an E-filing account. Till the time such an account is created by you, assessment proceedings shall be carried out either through your specified e-mail account or manually (if e-mail is not available). संलगà¥à¤¨à¤• : यथोपरि Enclosure as above सील / Seal à¤à¤µà¤¦à¥€à¤¯, Yours faithfully, DEEPA SRINIVASAN WARD 2, KARIMNAGAR Document 3 ANNEXURE In connection with pending scrutiny assessment U/s.143(3) of the IT Act 1961 you are directed to submit/ clarify the following for the assessment year 2017-18 in order to finalise the same:- 1. Brief note on your business activities. 2. With regard to cash deposits made in your bank accounts during the year under scrutiny, please provide the following information. (i) Give details of cash in hand in the following format- ....