TaxTMI 
TaxTMI 
TaxTMI 
2023 (2) TMI 1290
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.... dt.31.03.2018 u/s 148 the assessee had not filed its IT for A.Y. 2011-12, had resulted into miscarriage of justice . 4. That the Id CIT(A) has erred in not quashing the initiation of proceedings u/s147 by the A.O. 5. That the proceedings initiated us 147 are liable to be quashed because at the time of initiating proceedings us 147, the Id. AO was not sure as to whether the cash reportedly deposited in the bank account of the assessee maintained with Standard Chartered Bank, was un-accounted or not, and also not sure as to whether any income pertaining to A.Y. 2011-12 had escaped assessment or not. 6. That the proceedings initiated us 147 are liable to be quashed because the sanctioning authority viz. the Id Pr. CIT Delhi-16 New Delhi had granted sanction to the Id. AO to issue notice us 148 for A.Y. 2011-12 to the assessee, in a mechanical manner, without making any verification at his end. 7. That on the facts of the case and in law, the addition of Rs. 1,09,49,000/-, which was made by the Id. AO u/s 68 and which was upheld by the Id CIT(A), is liable to be deleted because the sources of entire cash deposited in the bank accounts was fully explainable with the help of....
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....he order of ITAT Delhi Bench dated 11.06.2020 in ITA 7437/Del/2018 for A.Y. 2009-10 in the case of Omvir Singh vs. ITO and submitted that under identical facts and circumstances the Tribunal by following the order of Hon'ble jurisdictional High Court of Delhi in the case of RMG Polyvinyl (I) Ltd. (supra) held that when the assessee has filed return of income for relevant A.Y. 2011-12 then the initiation of proceedings u/s. 147 of the Act and issuance of notice u/s. 148 of the Act has to be held that the Assessing Officer has invoked said provisions by wrongly assumed and jurisdiction therefore the entire reassessment proceedings and consequent order was quashed. 5. Replying to the above the Ld. Senior DR supporting the action of the AO, however he could not controvert that the assessee for A.Y. 2011-12 had filed its return of income on 02.07.20212 copy of which is available at pages no. 6 to 13 of assessee's paper book. 6. In the case of Shri Omvir Singh vs. ITO (supra) the Tribunal held as follows:- para 9 to 11 9. We have given thoughtful consideration to the orders of the authorities below and have gone through the evidences brought on record in the form of a paper book. The....
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.... I, therefore, have reason to believe that on account failure on the part of the assessee to disclose truly and fully all the material facts necessary for assessment for the above assessment year, the income chargeable to tax to the extent of accommodation entry of Rs. 1,56,00,000 has escaped assessment within the meaning of section 147 of I.T. Act. 1961. To bring to tax the income which has escaped assessment, I proposed to issue notice u/s. 148 of the I.T. Act. 1961. Since, four years has expired from the end of the relevant assessment year, and no scrutiny assessment was completed under Section 143(3) in this case for the said assessment year, the reasons recorded above for the purpose of reopening of assessment is put up kind satisfaction of Addl. Commissioner of Income Tax, Range14, New Delhi in terms of the proviso of Section 151(2) of the I.T. Act, 1961. 5. As it transpired subsequently there were at least two glaring errors in the above reasons. The first error was that the A.O. proceeded on the basis that "no return of income is available in the AST database of Income-tax Department. Therefore, it is clear that the assessee has not filed return of income for the A. Y....
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....der Section 147 of the Act. ------- ------- 13. As in the above case, even in the present case, the Court is unable to discern the link between the tangible material and the formation of the reasons to believe that income had escaped assessment. In the present case too, the information received from the Investigation Wing cannot be said to be tangible material per se without a further inquiry being undertaken by the AO. In the present case the AO deprived himself of that opportunity by proceeding on the erroneous premise that Assessee had not filed a return when in fact it had." 11. As the facts of the case in hand are identical to the facts of the case considered by the Hon'ble High Court of Delhi [supra], we are of the considered opinion that the Assessing Officer has wrongly assumed jurisdiction and accordingly, notice u/s 148 of the Act is hereby quashed thereby quashing the assessment order. 7. As the facts and circumstances of the present case are identical to the facts of the case in the case of RMG Polyvinyl (I) Ltd. (supra) and Shri Omvir Singh vs. ITO (supra) therefore we are inclined to hold that the Assessing Officer initiating reassessment proce....
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....he learned counsel submitted that when the assessee is in the business of Exchange of Torn/Soiled/Mutilated Indian Currency Notes into New/Fresh and vice-versa on discount/commission basis then it is obvious that the assessee would deposit cash/notes received from clients and would also simultaneously withdraw cash/notes from the bank accounts for the purpose of returning the same to the customer. Therefore there was no valid reason for the AO to make addition u/s. 68 of the Act of entire amount of cash deposited to the bank accounts of the assessee. The learned counsel also place reliance on the judgment Hon'ble jurisdictional High Court of Delhi in the case of Sona Electric Co. vs. Commissioner of Income Tax (152 ITR 507) and order of ITAT Delhi in the case of ITO vs. Mrs. Deepali Sehgal (ITA No. 5660/Del/2012 order dated 05.09.2014 and Smt. Parminder Kaur Matharoo vs. ITO (ITA No. 840/Del/2021 order dated 15.11.2022 and submitted that addition made by the AO and upheld the Ld. CIT(A) may kindly be set aside and deleted. 9. Replying to the above the learned Senior DR strongly supported the orders of the authorities below and submitted that the Assessing Officer after considering....