TaxTMI 
TaxTMI 
2024 (11) TMI 895
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....e Act having being initiated on 02/03/2020 in respect of the alleged transactions with the approval of the Ld. PCIT who was the approving authority u/s. 133(6) of the Act as the transaction was beyond three years and he also being an approving authority u/s. 151 of the Act, the impugned transactions having been not included in the reasons recorded, his assumption of jurisdiction u/s. 263 of the Act is bad in law. 3. Ld. Counsel for the assessee submitted that the issues raised in the additional grounds of appeal are purely legal issues and facts qua the issues raised in the additional grounds are fully available on the assessment folder. The ld. A.R. further submitted that since these issues are emanated out of assessment by the ld. Assessing Officer, therefore, no further verification of facts is required to be done at the end of ld. PCIT or ld. Assessing Officer and prayed that the same may kindly be admitted for hearing in view of the decision of the Hon'ble Supereme Court in the case of National Thermal Power Co. Limited -vs.- CIT reported in (1998) 229 ITR 383, wherein the Hon'ble Court has held that the Tribunal will have the discretion to allow or not allow a new ground to ....
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..... Leiline Commosales Pvt. Limited aggregating to Rs. 1,45,00,000/-. Besides information were sought regarding the transactions aggregating to Rs. 3,13,00,000/-with the following parties, namely M/s. Gajgamini Commotrade Pvt. Limited, M/s. Mangalrashi Vintrade Pvt. Limited, M/s. Flowtop Commodcal Pvt. Limited and M/s. Fastspeeds Sarees Pvt. Limited. Thereafter after examination of all the transactions, the reasons were recorded to the effect that income has escaped to the tune of Rs. 1,45,00,000/- received from the above three parties, namely M/s. Rudramukhi Builders Pvt. Limited, M/s. Shivpariwar Commercial Pvt. Limited and M/s. Leiline Commosales Pvt. Limited and notice was issued under section 148 on 20.03.2020 after taking due approval from the ld. PCIT-4, Kolkata. This notice was not complied with due to COVID 19 pandemic. Finally, the assessment was framed under section 144 of the Act vide order dated 21.09.2021 by making an addition of Rs. 1,55,00,000/- under section 68 of the Act thereby assessing the income at Rs. 1,63,02,980/-. The said addition comprised of Rs. 15,00,000/- received from M/s. Rudramukhi Builders Pvt. Limited, Rs. 65,00,000/- received from M/s. Shivpariwar ....
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....ed under section 142(1) dated 10.09.2021, copy of which is available at pages 19 and 20 of the paper book. It was also contended that after taking prior approval from ld. PCIT-4, Kolkata even prior to initiation proceedings under section 147 of the Act, notices under section 133(6) of the Act were issued to the assessee on 20.02.2020 and 02.03.2020, wherein information regarding transactions with three parties of Rs. 1,45,00,000/- were requisitioned. Besides the information in respect of four parties from whom the assessee had received Rs. 3,13,00,000/- were also sought by issuing notices u/s 133(6) of the Act. Thus ld. A.R. argued that the issue was duly and fully examined by the ld. Assessing Officer before issuing notice under section 148 of the Act. Ld. A.R. further submitted that before recording the reasons all the transactions were verified and therefore were not part of the reasons recorded under section 148(2), whereas the reasons were recorded in respect of transactions of Rs. 1,45,00,000/- received from three parties as stated above. The ld. A.R. contended that the jurisdiction of ld. Assessing Officer extends under Explanation 3 only if any fresh issues/material come to....
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....e Act. Thus, the issue was duly and fully examined by the ld. Assessing Officer before issuing notice under section 148 of the Act. ld. Assessing Officer after conducting proper inquiries and after taking prior approval under section 151 of the Act of ld. PCIT-4, Kolkata recorded reasons thereby forming a belief of escapement of income of Rs. 1,45,00,000/-. There is no denying the fact that ld. PCIT has exceeded his jurisdiction in the present case in holding that there was a failure on the part of ld. Assessing Officer to examine another information forwarded by the DDIT (inv) Unit-2(1) alleging that the assessee to be a beneficiary of Rs. 3,13,00,000/- on account of funds received from four parties as stated hereinabove. According to the AO the income has escaped assessment to the tune of Rs. 1,45,00,000/- which represented loans taken from three parties as stated above. Thereafter notice under section 148 issued on 20.03.2020. Again, in the assessment completed under section 147/144 of the Act vide order dated 27.09.2021, the AO made addition in respect of was alleged the transaction of accommodation entry with the party M/s. lemon Grass Project Pvt. Limited of Rs. 10,00,000/- w....