TaxTMI 
TaxTMI 
2023 (10) TMI 1188
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.... (iii) Payment to non-resident Rs. 1,60,315/-. (iv) Income 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 ....
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....rinciples of natural justice a final opportunity is being accorded to you through issue of this statutory notice. You are also required to furnish the relevant documents as called for vide notice u/s 142(1) of the Act, mentioned 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 Mutua....
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....re derived and transferred to NRE account and further used for investment in property." 9. Assessee has come in appeal raising following grounds : "1. That whether on the facts and circumstances of the case, the Ld. AO has erred in law in not providing 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....
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....lting in double addition. 11. That the Assessment has been made on surmises and conjectures without any basis. 12. That both the DRP and the learned ACIT have gravely erred in law in failing to consider the replies and submissions made by the Assessee 13. That the DRP failed to give reasonable opportunity of hearing to the assessee. 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 ....
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....cation by Ld. AO. 15. The provisions of sections 144C provides the entire mechanism for making a reference to the DRP; powers of the DRP and also the procedures which have to be followed to issue directions to the Assessing Officer. The relevant provisions of section 144C, which are relevant for our purpose, are reproduced herein below:- "144C Reference to dispute resolution 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 enqu....