2024 (6) TMI 654

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....rder to form his independent reasonable belief that any income of the appellant had escaped assessment, as the information from ITO(I and C1.), Jodhpur, vide their letter no. ITO(I and CI)/JDH/2016-17/2166, which formed the sole basis for initiating the reassessment proceedings, had been received by the Ld. AO only on 30.3.2017, as acknowledged by the Ld. AO in his reasons for reopening the assessment, recorded u/s 147 of the Income Tax Act. (ii) That the learned CIT (Appeals), NFAC, Delhi has erred both in law and on facts in upholding the unlawful and factually misconceived reassessment order u/s 147 being passed by the learned assessing officer for the AY 2010- 11, and not appreciating the fact the Ld. AO has passed the impugned reassessment order u/s 147 of the Income Tax Act, for the AY 2010-11, without forming an independent reason to belief that income had escaped assessment and without any independent application of mind. (iii) That the learned CIT (Appeals), NFAC, Delhi has grossly erred both in law and on facts in upholding the unlawful and factually misconceived reassessment order u/s 147 being passed by the learned assessing officer for the AY 2010-11,....

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....der u/s 147 to the Assessing Officer, in respect of the arbitrary and unlawful addition of Rs. 20,70,000/-, being made by Assessing Officer as undisclosed income u/s 56 of the Income Tax Act, on account of assuming the bank account transfers of the appellant, as unexplained, contrary to the documentary evidences, being furnished and placed on record before the Ld. AO, and not appreciating the fact that all the relevant and applicable supporting documentary evidences in respect of the said addition had already been produced and placed on record by the appellant, during the re-assessment as well as appellate proceedings. The Appellant craves leave to add, alter, vary, or amend the above ground of appeal, at or before the time of hearing of appeal." 3. Brief facts of the case are that, the assessee is a medical practitioner, filed his return for Assessment Year 2010-11 declaring an income of Rs. 5,46,080/-. The case was reopened u/s 147 of the Income Tax Act, 1961 ('Act' for short) and the A.O. vide assessment order dated 29/12/2017 made addition of Rs. 8,15,000/- u/s 56 which was routed through the Demat accounts and then claimed as Long Term Capital Gain, addition of Rs.....

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....SC). (iv) ITO vs. Lakhmani Mewal Das, 103 ITR 437(SC) (v) Commissioner of Income Tax v.G&G Pharma (2015) 384 ITR 147 (Del.) (vi) CIT vs Insecticides India Ltd 357 ITR 330, Delhi High Court. vii) CIT vs SFIL Stock Broking Ltd 325 ITR 285, Delhi High Court; (viii)Sarthak Securities Co. (P).Ltd vs ITO, 329 ITR 110, (Delhi HC); (ix) PCIT vs RMG Poly Vinyl (1) Ltd Delhi High Court; (x) Oriental Insurance Company Limited v. Commissioner of Income Tax 378 ITR 421 (Del). 5. Per contra, the Ld. Departmental Representative submitted that the notice dated 31st March, 2010 has been issued u/s 148 of the Act by rectifying the mistakes in issuing the notice dated 29/03/2010 and the subsequent notice dated 31/03/2010 was issued well within the limitation and mere by issuing the second notice, no prejudice was caused to the assessee and mistake or the error mentioning the date in the earlier notice was a technical defect, which has been corrected. Further submitted that it is not the case of the assessee that no notice was served and the assessee has availed the opportunity of being heard during the course of the assessment proceedi....

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.....O. are erroneous. Accordingly, the Assessment Order and the order of the Ld. CIT(A) are hereby set aside by deleting the Ground No. 1 of the assessee. Since we have allowed the Ground No. 1 and set aside the assessment order and the order of the Ld. CIT(A) other Grounds raised by the Assessee are not adjudicated. 8. In the result, Appeal filed by the assessee is allowed. Order pronounced in open Court on 13th JUNE, 2024 ============= Document 1 ITBA10000368702 -7). No 1640 INCOME TAX DEPARTMENT Exhibit-1 I SUSHIL SHIL JEETPURL CHARTER GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE INCOME TAX OFFICER WARD 30(4), DELHI To, SANTOSH KHUNTETA 501, PADMA PLACE, 86, NEHRU PLACE, NEW DELHI-110019 PAN: AIUPK0102B AY: 2010-11 Dated: 29/03/2017 Letter No: ITBA/AST/S/148/2016- 17/ Sir/Madam/ M/s. Notice Under Section 148 Of The Income Tax Act, 1961 Whereas I have reasons to believe that your Income chargeable to Tax for the Assessment Year 2010-11 has escaped Assessment within the meaning of section 147 of the Income Tax Act, 1961. I, therefore, propose to assess re-asse....