TaxTMI 
TaxTMI 
2024 (6) TMI 416
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....1 (in brevity the 'Act') dated 25.01.2024 arising out of the assessment order framed u/s 147 read with Section 144B of the Act dated 27.09.2021. 2. The brief facts of the case of the assessee is that the assessee, a non-banking financial company filed its return of income on 26.09.2013 declaring total income at Rs. 49,140/-. The return was processed u/s 143(1) of the Act. On 19.03.2020 a notice u/s 148 of the Act was issued and served upon the assessee. The notices issued u/s 148 of the Act depicts the reasons recorded for selection of the scrutiny u/s 147 of the Act and which as per the assessee is that the Assistant Director of Income Tax (Investigation) (OSD), Unit-4, Kolkata furnished an information in respect to STR Reference No. 10....
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..../- and consequent to the above facts, your kind approval for issuing notice u/s 148 of the IT Act, 1961 for AY 2013-14 may be given to initiate proceeding u/s 147 of the IT Act, 1961." 2.4. In response to the notice issued u/s 148 of the Act the assessee filed return of income under protest filed its objection challenging the re-opening of the proceeding alleging the escapement of income to the tune of Rs. 35 Lakh. The AO disposed of the objection without assigning any reason thereby holding that the assessee escaped the income to the tune of Rs. 35 Lakh and therefore, the total income of the assessee enhanced by Rs. 35 Lakh accordingly. On appeal before ld. CIT(A) again raved the grounds challenging the order of the AO but ld. CIT(A) co....
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.... for the assessee further submits that in proceeding for AY 2012-13 the re-opening of proceeding was initiated by the then ld. AO against the assessee on the same issue and it is after verification of the facts and details submitted and further after being satisfied with the identity of the entity and the genuineness of the transaction no addition was made in this regard. He has filed the assessment order of the AY 2012-13. The submission of the ld. Counsel for the assessee is that there was no credible information nor the AO has verified the genuineness of the information hence issuance of notice u/s 148 of the Act is wrong, illegal and liable to be quashed. The ld. Counsel for the assessee cited following decisions: - CIT(Exempti....
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....tice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under sub-section (2) of section 148." 6.1. In the present case, evidently the assessee received a sum of Rs. 20 Lakh as the statement submitted by the ld. Counsel for the assessee from M/s. Brahma Tradelinks Pvt. Ltd. during the relevant financial year. There is nothing brought by the AO with regard to the receiving of Rs. 35 Lakh, save and except this fact that he received credible information. The AO failed to provide any details of the alleged receipt of Rs. 35 Lakh from the said party at any point of time. We have gone through the judgment cited by ld. Counsel for the a....
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....he revenue to have not been based on evidence. Since the finding of the Tribunal was factually correct, the Tribunal had no option but to direct the AO to give the benefit of the losses suffered by the assessee, which he had disallowed. The appeal did not raise any question of law and was therefore not to be admitted." 6.3. The Hon'ble Calcutta High Court in another case of Peerless General Finance and Investment Co. Ltd. vs. Deputy Commissioner of Income Tax and Others reported in [2005] 273 ITR 16 (Cal) held the following: "The law is now well settled by the Hon'ble apex court, as discussed above, that the reason for the formation of the belief must have a rational connection with or relevant bearing with the information r....
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....d been received by the assessee from M/s. Brahma Tradelinks Pvt. Ltd., contrary to that the statement filed by the assessee goes to establish that an amount of Rs. 20 Lakh was received. So, we are of this opinion that information as alleged to be received by the AO cannot be said to be a credible information. Moreover, we further find that in the preceding A/Y 2012-2013, reopening proceeding was initiated by the then Ld. AO against the assessee on the same issue, i.e the transaction of the assessee with the same entity, viz. M/s Brahma Tradelink Pvt. Ltd. and after being satisfied with the identity of the entity and the genuineness of the transaction, no addition was made. (Order of A/O passed on 30-11-19 in on the record.) Keeping in view ....