TaxTMI 
TaxTMI 
2025 (1) TMI 1169
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....er, no submissions were made or none appeared on behalf of the assessee. Accordingly, assessment was completed u/s 144 read with section 147 of the Act by making following additions :- S.No. Particulars (Amount in Rs. ) No return filed by the assessee Nil I. Addition on account of Share transaction on STCG @ 15% 20,96,414/- II. Addition on account of commodity Transaction 4,86,533/- III. Addition on account of Rent Receipt appearing in 26AS 19,65,600/- IV. Addition on account of Cash Deposits 13,00,000/- V. Addition on account of Commission 60,98,062/- Total disallowance 1,19,46,609/- Total Income 1,19,46,609/- Rounded off 1,19,46,610/- 3. While verifying the assessment records, ld. PCIT, Delhi 12, Delhi observed that there was information on NMS that assessee had made cash deposit in his bank account and also made share transactions but no return of income was filed. Accordingly, the case was reopened but the assessee has not filed any return of income in response to notice issued u/s 148 of the Act. Accordingly, the assessment was completed with taxable income ....
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....are reproduced below :- "It is submitted that within the short period Assessee is unable to lay his hands on the required information inspite of best efforts. The Assessee's records are kept in the company office of Kouton Retail India in which husband of assessee was a director, since, the company has been sealed by High Court, appointed liquidator and the assessee is not able to access the records and thus assessee needs more time of one week to comply with the impugned Notice. In the mean time in view of principle of natural justice, your goodself is requested to provide with relied upon documents on the basis of which your goodself had issued the Notice. Assessee is ready to pay the required fee if any or at least till that time inspection of the entire file be allowed so that Assessee could file the reply. It is once again pressed upon that time asked be allowed and case be adjourned for any other date as Assessee is handicap for want of information. In view of the records of the assessee are stuck up in the hand of liquidator and time is needed for procuring information from liquidator as well as sub-Registrar, Gurugram. Assessee is informed if ....
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....lant has already filed an appeal before the First Appellate Authority and the same is still pending for adjudication. 3. That the order passed by the PCIT -12 u/s 263 of the Income Tax Act, 1961 on 26.03.2021 as further perverse to the law and to the facts of the case, because the Assessing Officer who has pass the assessment order u/s 144/147 of the I. Tax Act, 1961 on 28.12.2018 confirmed in Para-2 that the same was passed based upon to the information and records as available and gathered by her, which includes the information available in Foml-26AS of any of her transactions relating to the F.Y. 2010-11. 4. That on the facts and circumstances of the case, the order passed was further wrong and not tenable because of not ever confronting the relevant material which the Pr. CIT collected on the back of the appellant and used the same against the appellant, while passing such orders, despite of the specific requests of the appellant to the Pr. CIT to provide the copies of such material for its necessary reply and rebuttal thereof, as per law. 5. That the order passed u/s 263 of the Act is further not valid as legal under the law and to the facts of the c....
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.... submitted that the order passed u/s 263 is against the law deserves to be set aside. 8. On the other hand, ld. DR for the Revenue submitted that assessee has not filed any return of income and based on the information available with the Revenue, notice u/s 148 was issued to the assessee and there was no compliance from the assessee in response to notice u/s 148 of the Act. Further he submitted that during reassessment proceedings, assessee has sought adjournment only once and not complied subsequently. In response to the submissions of the ld. AR that the appeal is pending before ld. CIT(A) and 263 proceedings cannot be initiated, in this regard he submitted that issue raised by the PCIT is not the issue which is under appeal before the ld. CIT (A). During 263 proceedings, assessee herself appeared and agreed to offer the income to tax to settle the present issue. Therefore, the proceedings initiated u/s 263 is just and proper and relied on the findings u/s 263 of the Act. 9. In the rejoinder, ld. AR for the assessee submitted that no doubt, assessee has submitted the above workings and agreed to settle. However, he insisted that assessee's jurisdiction lies with PCIT-21. Wi....
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....ly on verification, the assessee herself accepted the fact that the relevant transaction was in fact carried on by the assessee and failed to offer the same and agreed to offer the same in due course. Therefore, the information stumbled upon by the AO is found to be correct and the information submitted by the AO even though captioned as proposal u/s 263, however in actual, the same was the information brought to the notice of the ld. PCIT for further course of action. After considering the overall facts on record, we do not see any reason to disturb the findings of ld. PCIT in this regard and the proceedings u/s 263 is properly initiated and concluded. Accordingly, the submissions made by the ld. AR on the validity of the 263 based on the information supplied by the AO are found to be defective and accordingly the above submission is dismissed. 12. Coming to the next prayer of the assessee that the initiation of proceedings u/s 147 of the Act was sanctioned by the ld. PCIT-21 whereas the present proceedings were initiated by ld. PCIT-12. We observed that from the order passed by the ld. PCIT and the proposal was submitted by the Assessing Officer before present ld. PCIT-12, it ....