TaxTMI 
TaxTMI 
2024 (9) TMI 1445
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.... "The learned Commissioner of Income-tax (Appeals) ["the Id. CIT(A)] erred in upholding the validity of reassessment though the original assessment was u/s. 143 (3) and there was no failure on the part of the appellant to disclose fully and truly all the material facts necessary for assessment. The Id. CIT(A) erred in upholding the additions made by the Id. AO where the reopening of the assessment was on the basis of borrowed satisfaction and merely a change in opinion. The Id. CIT(A) erred in affirming the order of the Id. AO which was based purely on suspicion, surmises and conjectures which is clear from para 5 of the reasons recorded in the reassessment order u/s 143(3) r.w.s. 147. The Id. CIT(A) erred in passing the order u/s 250 of the Act without addressing the issues raised by the appellant of non-furnishing of copies of the statement or information relying on which the Id. AO has made the impugned addition. Furthermore, the CIT(A) erred in affirming the order of the Id. AO which was passed without affording the appellant an opportunity of cross examination of the parties on the basis of whose statements, the additions were made in the present....
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....nterest paid to M/s Mani Prabha Impex Pvt Ltd amount to Rs. 16,59,500/- and M/as Dharm Impex Rs. 4,73,178/-. Accordingly, the total amount works out to Rs. 41,42,678/- which was added back as total income by treating the entire loan and interest as an accommodation entry. Being aggrieved, the assessee filed an appeal before the ld. CIT(A) for both the impugned assessment years. The ld.CIT(A) upheld the assessment orders. Being aggrieved on the appeal orders, the assessee filed the appeals before us. ITA 550/Mum/2024 - A.Y. 2011-12 4. We heard the rival submission and considered the documents available in the record. The ld. AR argued and filed the written submission which is kept on record (in short APB). The ld.AR challenged the legal grounds related to jurisdiction for reopening of the case under section 147 by issuing notice under section 148 of the Act. The Ld.AR placed that in impugned assessment year, the assessment was first completed under section 143(3) of the Act dated of order 06/03/2014. The assessee, in pursuance to the notice under section 142(1) dated 02/09/2013 submitted the entire details of unsecured loan as required in the said notice. Copy of the notice an....
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....e Assessing Officer while passing the assessment order. As held in Aroni Commercials (supra) even if assessment order has not specifically dealt with that issue, once the query is raised it is deemed to have been considered and the explanation accepted by the Assessing officer. It is not necessary that an assessment order should contain reference and/or discussion to disclose his satisfaction in respect of the query raised." Aditi Constructions vs DCIT W.P. No.783 of 2016, dt of order 04/05/2023. The relevant paragraphs is reproduced as below: - "CONCLUSION 8. We have heard both learned counsel and carefully perused the papers and proceedings. 9. We find that the jurisdictional conditions for invoking section 147-148 are not satisfied as there is no failure to disclose material facts fully and truly. It is not in dispute that by the letter dated 11 September 2015 (Exhibit H) the Petitioner have submitted all the particulars along with supporting documents to the Respondent No.1. Hence the reasons to believe and s presumption based on the statement of Shri Bhanwarlal Jain (a third party) in the course of a search, that the loans of the en....
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....that where primary facts necessary for assessment are fully and truly disclosed the AD is not entitled to reopen the assessment on a change of opinion. It is held that while considering the material on record, one view is conclusively taken by AO, it would not be open for the AD to reopen the assessment based on the very same material and take another view. 13. In the present case, a perusal of the reasons recorded by Respondent No. 1, indicate that, the Respondent No. 1 has relied upon facts and figures on the record; and the queries were answered and particulars were provided vide letter dated 11th September 2015 is also not disputed. This Court in the case of Nikunj Eximp Enterprises (P) Ltd. (supra) has considered the above aspect whilst holding that: "...This satisfaction has necessarily to be the subjective satisfaction of the Assessing Officer and unless it is shown by the Petitioner that such a reasonable belief as arrived at by the Assessing Officer in the facts of the cases is just not possible, the proceedings for reassessment duly initiated will not be stalled." In our view, the Petitioner has by production of bank statements and supporting do....
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....t warrant any adjudication. 8. In the result, the appeal of the assessee is allowed." 8. Considering the above submission, we find that the Ld. AO has already adjudicated the issue by issuing notice under section 142(1) during the impugned assessment year by the order passed U/s 143(3) of the Act. The same issue was reopened by the report of the Investigation department. During the assessment, we find that the Ld.AO had not made any separate investigation against the unsecured loan which was treated as accommodation entry. Mere change of opinion cannot be the reason for reopening. We respectfully relied on the order of Seimens Financial Services P. Ltd (supra)and Aditi Constructions vs DCIT (supra) and Engineers & Allied Elastomers (supra) which have the common legal issue. Accordingly, the notice issued under section 148 is bad in law. The ld. AO acted beyond jurisdiction to reopen the assessment. We set aside the impugned appeal order and direct the ld. AO to delete the addition amount to Rs. 1,85,50,000/-. 9. In the result, the appeal of the assessee bearing ITA No.550/Mum/2024 is allowed. ITA No.551/Mum/2024 : AY 2013-14 10. We heard the rival submission an....