TaxTMI 
TaxTMI 
2024 (9) TMI 1446
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....rs' case under Risk Management System (RMS) in accordance with the risk management strategy formulated by the CBDT. 4. The ld. Assessing Officer ('A.O.' for short) issued a reassessment notice u/s. 148A of the Act dated 27.03.2022 for the reason that the assessee has entered into four transactions to the tune of Rs. 1,42,03,454/- which includes purchase of immovable property, purchase and sale of equity shares and other financial transactions for which the assessee has not filed his return of income, declaring the source of the said transaction and the capital gain on equity shares, thereby the ld. A.O. reopened the assessee's case on the belief that the income has escaped assessment for the year under consideration. The ld. A.O. then passed the draft assessment order dated 28.03.2023 u/s. 144C(1) r.w.s. 147 r.w.s. 144 of the Act, determining the total income at Rs. 1,41,89,550/- after making addition/disallowance on short term capital gain (STCG for short) and unexplained investment u/s. 69 of the Act on best judgment assessment for the reason that the assessee has been non compliant throughout the assessment proceeding. The assessee filed his objection to the proposed ....
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....of additional evidence and without prejudice has stated that if the additional evidence is admitted, the same is to be remanded back to the Hon'ble DRP for verification of the same. The ld. DR further relied on the decisions cited by the Hon'ble DRP and the order of the lower authorities. 8. We have heard the rival submissions and perused the materials available on record. It is necessary to admit the additional evidence filed by the assessee for proper adjudication of the issue after duly considering the justification rendered by the ld. AR on the reason for failure on the part of the assessee to furnish the same before the lower authorities. It is observed that the ld. A.O. has reopened the assessee's case for the reason that the assessee has entered into the following financial transaction during the impugned year: Information Code Information Description source count Amount Description Amount (Rs.) TDS-195 TDS Statement - Payment made non residents (Section 195) Axis Bank Ltd. 1 Amount paid or credited 13900 STT-02 Sale of equity share (settled by the actual delivery or transfer) in a recognized stock exchange NSE 1 Value of....
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....n to the departmental officers with regard to the uploading of data on functionality/portal of the Income-tax Department. This circular emphasises the earlier circular dated 1st August, 2022 and in paragraph 3 therein, it has been stated as follows: "(3). Further, it is re-emphasized that - (i) Before initiating proceedings under section 148/147 of the Act, any information available on data-base/portal of the Income-tax Department shall be verified before drawing any adverse inference again the taxpayers. It is not out of place to mention here that the information made available/data uploaded by the reporting entities may not be fully accurate due to inter alia, error of human nature technical nature, etc. Therefore, due verification may be carried out and opportunity of being heard be given to the taxpayer before initiating proceedings under section 148/147 of the Act. (ii) The supervisory authorities are hereby advised to keep an effective supervision so as to ensure that all extant Instructions/Guidelines/Circulars/SOPs are duly followed by the Assessing Officers in their charge." 6. From the above it is clear that it has come to the notice of....
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.... 148 cannot be lightly resorted to so as to reopen assessment and this information cannot be a ground to give unbridled power to the revenue. In fact, in the case on hand, the information has been lightly used which resulted in issuance of notice. As pointed out earlier, the assessee had submitted the explanation to the notice along with documents in support of their claim. The assessing officer has given up the said allegation which formed the basis of the notice and proceeded on a fresh ground for alleging that the transaction with some other company was an accommodation entry. Therefore, on that score also the order dated 7th April, 2022 is liable to be set aside in its entirety without giving any opportunity to reopen the matter on a different issue. 9. For the above reasons, the appeal filed by the assessee (APOT/132/2022) is allowed and the order dated 7th April, 2022 under section 148A of the Act is set aside and the direction issued by the learned Single Bench remanding the matter to the assessing officer is also set aside. Consequently, no further action can be taken by the department against the appellant/assessee on the subject issue. 11. From the above, it i....