2024 (6) TMI 417

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....pening the assessment u/s 148 of the Income Tax Act, 1961, without appreciating that:- (i) Notice issued u/s 148 is bad in law, as it is not established that the reasons recorded are prior to the issuance of notice u/s 148. (ii) The AO has not followed the procedure laid by the Supreme Court in the case of GKN Driveshafts reported in 259 ITR 19 (SC), in as much as the objections raised by the assessee have not been rejected. (iii) There is reason to believe that income has escaped assessment, is not established. (iv) The order passed u/s 143(3) r.w.s. 147 is uncalled for where the AO himself agreed that there is no income which has escaped assessment, accordingly the proceedings needed to be dropped. ....

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....e purchase made from the said party in response to various queries by the AO. Finally, AO after making relevant enquiries from the party, seeking records, explaination of the assessee and verification of account, no adverse inference was drawn with regard to alleged escaped income and assessee's income which was determined as per the original assessment order passed u/s. 143(3) r.w.s. 144C(13) dated 30/01/2017 was accepted and there was no variation. The relevant conclusion of the AO reads as under:- "7. On perusal of assessee's submission and statement of bank account of M/s Mandal Traders for the relevant period, it is seen that assessee had sale transaction with the said party i.e. M/s Mandal Trader. Therefore, no adverse in....

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....at Hon'ble Supreme Court of India in the case of CIT vs. Bhagat Construction Co Pvt Ltd in Civil Appeal No.1169 of 2006 vide order dated 06/08/2015 has held that the charging of interest u/s 234B is automatic when the condition of section 234B are met. As per the provisions of section 234B, if the advance tax paid is less than 90% of assessed tax then the interest u/s 234B is chargeable. The assessed tax is defined as tax on total income determined u/s 143(1) or regular assessment. In the present case, the AO has charged interest u/s 2348 on assessed tax from 1st April 2012 to the date of regular assessment as per the statutory provision. In view of the above discussion, the action of the AO of charging interest is upheld and the ground....