TaxTMI 
TaxTMI 
2024 (12) TMI 1257
X X X X Extracts X X X X
X X X X Extracts X X X X
....come for A.Y. 2009-10 was filed by the assessee on 28.09.2009 declaring total income of Rs. 2,70,210/- and return of income for A.Y. 2010-11 was filed on 14.10.2010 declaring total income of Rs. 3,50,170/-. 2.1. Pursuant to search and seizure action carried on in the case of one Bhawarnlal Jain and Group concerns on 03.10.2013, case of assessee for the year under consideration was reopened. The assessee was issued notice u/s. 148 of the act for A.Y. 2009-10 and 2010-11 on 18.03.2016. In response to the notice, the assessee filed letter on 06.06.2016 stating that, the original return of income filed for the years under consideration may be treated as return in response to the notice u/s. 148 of the act. 2.2. Subsequently, notice u/s. 143(2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....modation entries for the year under consideration are given as under:- Sr.No. Name of the hawala entities PAN Amount involved 1. MERIDIAN GEMS AAQFM7140P 39438810 2. MOULI GEMS ANBPB0169K 4983082 3. NAMAN EXPORTS AGWPC1001D 42794544 Total 8,72,16,436 5. On the basis of the aforesaid information available with the undersigned, I have reason to believe that income chargeable to tax, as indicated above, to the tune of Rs. 8,72,16,436/-, or any other income chargeable to tax which comes to my notice subsequently in the course of proceedings for re-assessment, has escaped assessment. within the meaning of section 147 of the IT Act 1961. The assessee has, therefore, failed to disclose true and complete par....
X X X X Extracts X X X X
X X X X Extracts X X X X
....om the investigation wing, wherein it is stated that, Bhanwarlal Jain and group were engaged in providing accommodation entries and that assessee had obtained accommodation purchases from the said group. ii) No opportunity of cross examination was granted to the assessee based on which the additions is made and that the Ld.AO never gave the materials to the assessee that was relied upon, thereby violating the principles of natural justice. 3.1. The Ld.CIT(A) in respect of the above legal contentions, rejected the arguments of the assessee by relying on the observations of the Ld.AO to reject reopening of the assessee dated 31.08.2016, and decision of Hon'ble Supreme Court in case of GKN Driveshafts India Limited vs ITO reported in (2003)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed u/s. 148 of the act. He placed reliance on the decision of Hon'ble Gujarat High Court in case of PCIT vs. Marck Bio Sciences Ltd reported in (2019) 106 taxmann.com 399. He also placed reliance on the decision of Hon'ble Supreme Court in case of Hotel Blue Moon reported in 321 ITR 362, and submitted that, section 292BB of the act, will come to the rescue of revenue only after issuance of notice u/s. 143(2) of the act. 4.1. The Ld.AR further place reliance on the decision of Hon'ble Surat Tribunal in case of Crypton Diamonds Pvt. Ltd. Vs ACIT in ITA Nos. 310, 311 and 312/SRT/2019 (assessee's appeal) and ITA Nos. 350-352/SRT/2019 (appeals by revenue) for A.Y. 2011-12 to 2013-14 vide order dated 07.12.2021 wherein identical issue was consid....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ndatory requirement of a notice being issued by Ld.AO u/s. 143(2) of the act pursuant to filing of return of income, cannot be treated to be the correct procedure in the eyes of law as observed by Hon'ble Supreme Court in case of Hotel Blue Moon (supra). Further, non issuance of notice u/s. 143(2) of the act after filing of return of income cannot be said to be mere procedural irregularity and the same is not curable as observed by Hon'ble Supreme Court in case of Hotel Blue Moon (Supra). 5.2. The basic requirement under the act for issuance of notice u/s. 143(2) cannot be dispensed as held by with Hon'ble Delhi High Court in case of PCIT vs. Shree Jay Shivshakar Pvt. Ltd reported in (2015) 64 taxmann.com 220 on identical set of facts.....