TaxTMI 
TaxTMI 
2025 (5) TMI 1403
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Accountants and therefore there is no concealment of Income, therefore, initiation of reassessment proceedings based on wrong recorded facts as per explanation-2, which state that, for the purpose of this section the following shall be deemed to be cases where income chargeable to tax has escaped assessment, and as per explanation-2(c)(i) which state that, where the assessment has been made but income chargeable to tax has been under assessed, therefore, reopening of assessment is void ab initio and to be quashed. The Learned Assessing officer has failed to prove prima facie opinion based on Tangible material which provide nexus or link to having reason to believe that income had escaped assessment. Thus, there was no reason nor any justification given in notice to even arrive at prima facie finding that sales led to escapement of income. [3] On the facts and in the circumstances of the case, the Learned AO Ward-1(3)(1), Ahmedabad. Income Tax Department has erred, both on facts and in law, as the assessment was reopened u/s 147 on basis of information received from ITO (Inv.) unit-2 Ahmedabad without application of mind, as the very same information was availabl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....officer has grievously erred in making addition of variation in respect of unexplained Income from undisclosed sources, by not providing cross examination though requested, without giving sufficient and specific opportunity to the appellant and thereby violating the principles of natural justice. The Appellant should therefore be allowed to produce additional evidences during the course of appellant proceeding and should be admitted. [11] The Learned Assessing officer has grievously erred in making addition of variation in respect of unexplained Income from undisclosed sources though, the sales of Rs. 41,99,500/- made to M/s. Akshar Corporation prop. Shripal Pravinchandra Shah was recorded in the Books of Account and the payment has been received through banking channel only, which are audited by Chartered Accountants. [12] That the learned Assessing officer has grievously erred in not considering the explanation of the appellant in regards to the credit is prima facie reasonable even though the same has been rejected on capricious and arbitrary grounds [13] That the learned Assessing officer has grievously erred in not considering the fact that books of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....committed default of Section 271(1)(C) of the IT Act as the sales has been recorded in the books of account and therefore there is no concealment of income and therefore proceedings initiated deserves to be cancelled. [21] That the appellant has not committed default of Section 207 to 219 and interest charged under sections i.e. 234A, 234B,234C and 234D deserves to be deleted. [22] That the appellant craves leave to add, amend or alter any of the grounds of appeal It is therefore prayed that the addition of Rs. 41,99,500/- made by the Assessing officer should be deleted." 3. The assessee filed return of income declaring total income at Rs. 19,85,572/- on 31-08-2012. The case of the assessee was reopened for assessment year 2012-13 after recording reasons for doing so and also after obtaining necessary approval from the Pr. CIT. Notice u/s. 148 of the Income Tax act, 1961 dated 28-03-2019 was issued. In response to the notice u/s. 148, the assessee filed return of income on 25-04-2019 declaring total income of Rs. 19,81,572/-. The reasons recorded for reopening of the assessment was provided to the assessee on 18- 06-2019 along with notice u/s. 143(2) o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... are duly audited by the chartered accountant. The Assessing Officer further submitted that the Assessing Officer did not consider the explanation of the assessee in accordance with the credit which is a prima facie evidence and thus it was rejected arbitrarily. The ld. A.R. submitted that books of accounts were duly audited and the assessee was opening stock account and therefore there was no suppression of sales as contended by Assessing Officer. The ld. A.R. submitted that recording purchase and sales in the books of accounts then only profit element should be taxed which the assessee has already offered to tax. The ld. A.R. submitted that without any incriminating material as to a bogus sale, the Assessing Officer cannot give finding contrary to the same. The Assessing Officer should have given the benefit of purchase against sales as the Assessing Officer has accepted the purchase. The ld. A.R. submitted that amount returned back to the assessee, though assessee filed relevant documents; ledger accounts, bank statement, details to prove genuineness of sales and payments received through banking channel. The ld. A.R. further submitted that the Assessing Officer has made against....