TaxTMI 
TaxTMI 
2023 (10) TMI 1188
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.... in respect of units of non-residents Rs. 463/- 2.1 Ld. AO observed that despite of involved in said financial transactions for year in consideration, assessee have not filed return of income although having taxable income contrary to existing provisions. Accordingly, assessee was issued and served upon with letter dated 17.03.2021 seeking clarifications on transactions and reason for non filing ITR wherein compliance was sought by 22.03.2021. The Ld. AO observed that assessee remained un-responsive to the letter dated 17.03.2021 and since, the assessee has not filed its return of income for the relevant period therefore an amount of Rs. 6,16,68,119/- remained unexplained and genuineness, creditworthiness of the transactions made could not be verified. 3. Thereafter vide notice u/s 142(1) of the Act dated 24.02.2022, assessee was asked to submit the following details- "(a) Payment made in respect of transfer of immovable property valued at Rs. 4,91,58,19/-. (b) Payment made in respect of purchase of Units of Mutual Fund of Rs. 1,23,49,151/- (c) Payment to Non-Resident (section 196A) of Rs 160315 (ii) In regard of purchase of property, you are requested to provide followin....
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....ed above in support of your financial transactions. You are hereby required to render your submissions along with proof with regard to above objections by 07.03.2022. Please note that in the event of non-compliance or non-furnishing of complete details, the proceedings may be completed on merits apart from initiation of penalty proceedings as per IT Act. In case no response is received it will be presumed that you have nothing to state in this matter and the assessment will be finalized on the basis of materials/information available on records without allowing any further opportunity under the provision of section 144 of the Income Tax Act, 1961." 5. In pursuance of the same, Ld. AR of assessee vide its reply dated 05.03.2022, has submitted that; "the explanations for payment made for immovable property amounting to Rs. 4,91,58,190/- have been provided. ICICI Home loan documents have been attached. Further, in respect of payments of Mutual funds of Rs. 12349151/- are also explained. The assessee is a high net worth individual and has remitted funds from overseas or his existing funds have switched to other funds." 6. The Ld AO did not find the reply tenable and held that Ass....
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.... the reasons for reopening U/s 147/148 and copy of the requisite approval of the Authority U/s 151 to the appellant, even when the return of income has been filed by the appellant in pursuance to notice issued U/S 148 of the Act. 2. That whether not following the procedure as per the jurisprudence pertaining to the reassessment proceedings U/s 147/148 as per the decision of the Hon'ble Supreme Court in the case of GKN Driveshaft do not vitiate the entire reassessment proceedings. 3. That whether on the facts and circumstances of the case, the order of the DRP is unsustainable in law as the same is a nonspeaking order and is passed in a mechanical way and hence the assessment order passed in consequence of such directions is also bad in law. 4. That whether on the facts and circumstances, the assessment order passed in consequence of the directions given by the DRP is not perverse, as the same is passed without considering the documents on record and without considering the submissions made by the appellant on three occasions. 5. That on the facts and in the circumstances of the case the learned ACIT is not justified in making the additions of Rs. 615,23,087 to the retur....
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....essee. 14. That the Levy of interest u/s 234A and 234B is erroneous, excessive, & without authority of law. 15. That considering the mode and manner in which the present reassessment proceeding are being conducted does it not tantamount to sheer harassment of the appellant and therefore whether the appellant is not entitled to receive cost from the department. 10. On hearing the Ld. Representatives of the parties it comes up that in the present case, the assessee had made certain financial transactions of investments and payments which are treated as unexplained investment. Admittedly assessee has not maintained any books of accounts as it is not compulsory that the assessee must have maintained the books of accounts. He could have proved the genuineness of the transactions by some other evidence which establish that the investment are out of disclosed source. 11. Before the Ld. DRP assessee has contested that Ld. AO has erroneously treated the investment in immovable property as unexplained without considering the source of investment being Home Loan. The mutual funds were purchased out of the bank account of the assessee and source being the redemption of mutual funds, capi....
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....n panel.- (1) to (4)** ** ** (5) The Dispute Resolution Panel shall, in a case where any objection is received under subsection (2), issue such directions, as it thinks fit, for the guidance of the Assessing Officer to enable him to complete the assessment. (6) The Dispute Resolution Panel shall issue the directions referred to in sub-section (5), after considering the following, namely:- (a) draft order; (b) objections filed by the assessee; (c) evidence furnished by the assessee; (d) report, if any, of the Assessing Officer, Valuation Officer or Transfer Pricing Officer or any other authority; (e) records relating to the draft order; (f) evidence collected by, or caused to be collected by, it; and (g) result of any enquiry made by, or caused to be made by, it. (7) The Dispute Resolution Panel may, before issuing any directions referred to in sub-section (5),- (a) make such further enquiry, as it thinks fit; or (b) cause any further enquiry to be made by any income-tax authority and report the result of the same to it. (8) The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order so, however, that it shall not ....