TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 996
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....n of AO in initiating the reassessment proceedings u/s 148 of the Act which is wrong, invalid, illegal and unjustified in the facts and circumstances of the case. 3. Facts in brief are that the premises of the assessee were searched u/s 132 of the Act on 01.08.2024 which finally culminated in passing of assessment order u/s 153A read with Section 144 of the Act dated 27.12.2016. During the above search assessment proceedings, the counsel of the assessee appeared before the AO from time to time and furnished the details as called for including the details in respect of loans raised by the assessee during the assessment year in response to query by the AO. Thereafter the assessment was reopened u/s 147 of the Act by issuing notice u/s 148 of....
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....se at his end which is just a borrowed satisfaction as the same was believed as it was received without any independent application of mind. Thus this is just a borrowed satisfaction on the part of the AO for reopening the already settled assessment in which the issue of loans raised by the assessee has duly been examined by the AO after calling for details/information qua the loans and also calling for details from the loan creditors u/s 133(6) of the Act. The Ld. A.R also referred to page 28 and 29 of PB which is a remand report called for by the Ld. CIT(A) from the AO during the appellate proceedings in the first round of proceedings before the appellate authority which was submitted by the AO on 04.05.2017 in which the AO had clearly st....
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....arthak Securities Co Pvt Ltd. Vs ITO (2010) 329 ITR 110 (Del). 6. The Ld. D.R on the other hand submitted that while reopening the assessment only information is required to be there in the possession of the AO which is the only requirement and is a valid ground for reopening u/s 147 of the Act and therefore the action u/s 147 of the Act was validly initiated by the AO. The ld DR further submitted that the assessee did not appear before the AO and therefore the issue may be restored to the file of AO for examination afresh and consequently may be decided as per the facts and law. 7. After hearing the rival contentions and perusing the material on record, we find that the assessment has originally been framed u/s 153A of the Act by the AO ....
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....cts available before the AO is invalid and void-ab-initio. In the instant case, as against the loan of Rs. 50,00,000/- the AO has wrongly noted Rs. 3,20,00,000/- meaning thereby that the AO has not applied his mind to the information received from the Investigation Wing. Under the facts and circumstances of the case we are not in a position to confirm the order of Ld. CIT(A) on this issue which appear to be contrary to the provisions of the Act. The case of the assessee finds support from the following decisions The case of the assessee finds support from the decisions of Hon'ble Delhi High Court in the case of CIT vs. SFIL Stock Broking Ltd. in [2010] 325 ITR 285 (Del) and in the case of ACIT vs Meenakshi Overseas Pvt. Ltd. [2017] 82 taxma....
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.... for the assessment of that assessment year. It is needless to mention that the reasons are required to be read as they were recorded by the Assessing Officer. No substitution or deletion is permissible. No additions can be made to those reasons. No inference can be allowed to be drawn based on reasons not recorded. It is for the Assessing Officer to disclose and open his mind through reasons recorded by him. He has to speak through his reasons. It is for the Assessing Officer to reach to the conclusion as to whether there was failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the concerned assessment year. It is for the Assessing Officer to form his opinion. It is for him to ....