TaxTMI 
TaxTMI 
2024 (7) TMI 1554
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.... the notice u/s 148 of the Income Tax Act with regard to reopening of the case. 2. On the facts and the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has erred in upholding the validity of notice issued under section 148 of the Income Tax Act whereas as per facts and other material placed on record, notice issued under section 148 of the Income Tax Act is an illegal and invalid notice issued without any proper and valid reasons. 3. On the facts and the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has erred by holding that the sales of Rs. 42,68,400/-as deemed income u/s 68 of the Income Tax Act without appreciating that these sales are already declared as income in the return filed. Therefore, provisions of section 68 are not applicable. 4. On the facts and the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has erred by holding that modus of making bogus sales of Rs. 42,68,400/- is only to increase the turnover with the motive to avail better loan facilities from the banking authorities without appreciating that these sales are negligible i.e., 0....
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.... vi) Sh. Jaspal Singh (Chandigarh Bench) 88 ITR (Trib) 407 vii) Smt Charanjitj Kaur, 88 ITR (Trib) 414 (Chandigarh Bench) 5. The ld. DR, on the other hand, has sought to place reliance on the impugned order. It has been contended that in the reasons recorded, the date of the filing of return and the income returned by the assessee were inadvertently wrongly stated, due to typographical error, which does not vitiate the reasons recorded by the AO to form his belief of satisfaction of escapement of income. 6. In this regard, it is seen that in para No.1 ( APB-33) of the reasons for issue of notice u/s 148 of the Income Tax Act in the case of the assessee for the year under consideration, it has been stated as follows : "The assessee is a Private Limited Company and engaged in business of manufacturing of Vanaspati Ghee and refined oils. The assessee has filed return of income through e-filing on 30.09.2010 for assessment year 2011-12 declaring income of Rs.1,62,28,910/-". 6.1 The copy ( APB-1) of Income Tax Return acknowledgement for the year under consideration shows that such return of income was filed on 28.09. 2011 and not on 30.09.2010, as sta....
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.... Sirs, Sub: Appeal before Hon'ble ITAT, Bench 'A', Chandigarh in the case of M/s Kissan Fats Ltd. for the A.Y. 2011-12 in ITA No. 407/Chd/2023 - regarding. Kindly refer to above cited subject. The above mentioned case is fixed for hearing on 22.02.2024 before the Hon'ble ITAT, Bench-A, Chandigarh. 2. In this regard, it is submitted that this office had asked the concerned Assessing Officer i.e. DCIT, Central Circle-1, Ludhiana to give her comments on the following : (i) In the first paragraph of the original assessment order dated 03.02.2014, it is mentioned that "Return declaring nil was e-filed by the assessee on 28.09.2011'', while in the first paragraph of reasons recorded by the A.O. to issue the notice u/s 148 of the Act, the A.O. had mentioned that "the assessee had filed return of income through e-filing on 30.09.2010 for A.Y. 2011-12 declaring income of Rs. 1,62,28,910/-." 3. In this context, it is submitted that the reply of the concerned Assessing Officer i.e. DCIT, Central Circle-1, Ludhiana has been received in this office, giving her comments, which are reproduced as below : The case ....
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....he basis of wrong facts and, therefore, the re-opening was not valid and it was being quashed. 8.2 The Tribunal followed the decisions cited as under : i) Sagar Enterprises Vs ACIT, 257 ITR 335 (Guj) ii) Baba Kartar Singh Dukki Educational Trust Vs ITO, rendered by the Chandigarh 'SMC' Bench of the Tribunal, (2016) 158 ITR 965 (CHD)(TRIB) iii) Shri Ram Mohan Rawat Vs ITO, order dated 10.10.2019 passed by the Jaipur Bench of the Tribunal in ITA No. 1014/JP/2018 iv) Van Oord Dredging & Marine Contractors BV Cs ADIT, order dated 28.02.2018, passed by the Mumbai Bench of the Tribunal in ITA Nos. 495&496/Mum/2016. 8.3 Similarly, in 'Sagar Enterprises' ( supra), it has been held as follows : " that it was apparent that the fact of non-filing of the return for the assessment year 1991-92 had weighed with the respondent for arriving at the satisfaction about the failure on the part of the assessee and escapement of assessment of income. However, the material on record showed that the return had been filed. In such circumstances, it could not be said with certainty as to which fact would have weighed with the officer concerned and once it w....
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....uction of information received from the Investigation Wing. The said information is also incomplete as regards the details of the purchases and the parties from whom such purchases were made by the assessee. Thus the reasons recorded by the AO manifest that there is no application of mind and the averments as recorded in the reasons are very vague and general and rather inconsistent with the facts available on record so far as the filing of return of income by the assessee. The formation of belief on such incorrect and vague reasons would lead the reopening of the assessment as invalid." 8.6 Then, in 'Van Oord Dredging and Marine Contractors BV' (supra), it has been held as under : "In AY 2005-06, the A.O. has reopened the assessment on incorrect facts and further the assessing officer has failed to demonstrate that there was failure on the part of ht assessee to disclose fully and truly all material facts during the course of original assessment proceedings. Hence the reopening of assessment of AY 2005-06 is liable to be quashed on these two grounds also. Accordingly we set aside the order passed by Ld. CIT(A) on this issue and hold that the reopening of assessments of....
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....red as income in the return filed. Therefore, provisions of section 68 are not applicable. 4. On the facts and the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has erred by holding that modus of making bogus sales of Rs. 26,62,821/- is only to increase the turnover with the motive to avail better loan facilities from the banking authorities without appreciating that these sales are negligible even less than 0.0001% of the total turnover of Rs 47981 lakh of the company. 5. On the facts and the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has erred by confirming addition of Rs. 26,62,821/- merely on the ground that the confirmation from the concerned party to whom sales made has not been furnished. 6. On the facts and the circumstances of the case and in law and material placed on record, the Ld. Commissioner of Income Tax (Appeals) has erred in confirming the addition of Rs. 26,62,821/-. 7. On the facts and the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has erred by making addition of Rs.53,256/- as unexplained expenditure u/s 69C of....
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....ter-VI-A 3 Total facom 3 Current Year los if any 295834401280911 PAN AABCK43350 Form No. which has been electronically transmitted ITR-6 Pin Status (fill the code) Ple Company 151001 Original or Revised (ORIGINAL Date(DD/MM/YYYY) 68-09-201 4 Net tax payable 5 Interest payable 6 Total tax and interest payable Advance Tek 7 Tax Paid b TDS COME TAX DEPARTINGAL 70 7b 0 825136 c TCS По 0 d Self Assessment Tax pe 5264250 Total Taxes Paid (7a+7b+7+7d) Tax Payable (6-78) Refund (7e-6) 2 3 3a 45594102 5583586 14 525802 This return has been digitally signed by SHRAJINDER MITTAL in the capacity of DIRECTOR having PAN AARPM92261 from IP Address 59.94.241.34 on 28-09-2011 at BATHINDA Dse Si no & ismer 6109388 6109386 0 Document 2 PERSONAL INFORMATION AND THE DATE OF ELECTRONIC TRANSMISSION COMPUTATION OF INCOME AND TAX THEREON INDIAN INCOME TAX RETURN ACKNOWLEDGEMENT Where the data of the Return of Incear in Form SARAL-II (ITR-ITR-ITR-3. IT-4. ITR-5, ITR-6 transmitted electroni....