TaxTMI 
TaxTMI 
TaxTMI 
2024 (7) TMI 1645
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....ithout disposing of objections raised to reopening of assessment is illegal and bad in law being opposed to following Judgments: a) GKN DRIVESHAFTS (INDIA) LTD. VS. ITO & ORS.259 ITR 19 (SC) b) GENERAL MOTORS INDIA (P). LTD. VS. DCIT 354 ITR 244 (GUJ) c) ARVIND MILLS LTD. VS. ACWT 270 ITR 469 (GUJ) Wherein it has been held that Ld. Assessing Officer must pass an order by disposing of objections to the reasons recorded before passing any assessment order u/s 148 of the Act. 3. That on the facts & circumstances of the case, learned assessing officer has grossly erred in law in initiating proceedings u/s 147 of the Act since conditions for assumption of jurisdiction u/s 147 of the Act were lacking, in as much as, neither the reason to believe provide requisite nexus for the belief that income has escaped assessment nor there was any application of mind before assumption of jurisdiction. It may kindly be held that notice u/s 148 issued by the AO was illegal and invalid and consequent assessment framed u/s 144 r.w.s. 147 of the Act be held illegal and bad in law. 4. That on facts and circumstances of the case, order passed by the Learned Commissioner of Income Tax (Appeals....
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....ther objection of the assessee was discussed, the amount of cash deposit as per bank account is Rs. 62,18,200/- and not Rs. 70,43,000/- as mentioned in reasons is accepted". No separate speaking order has been passed by the AO disposing off the objections to recorded reasons of the assessee, which is the mandate of law laid down by the Hon'ble Gujrat High court in the case of General Motors India (Pvt.) Ltd vs DCIT reported in 354 ITR - 224. Thereafter, the assessment was completed on a total income of Rs. 62,18,200/- as income from undisclosed sources u/s 69A of the Act 61. 4. The matter was carried in first appeal where elaborate submissions has been filed by the assessee supported by judicial decisions, challenging the initiation of proceedings u/s 147/ 148 of the Act 61 and also on merits, explaining the source of cash deposited in bank to have come out of sale proceeds of agricultural lands effected in FY 2008-09. 5. The Ld. CIT (A) sustained the addition after considering the submissions of the assessee and the relevant part of the findings and conclusion are reproduced below: "6.11 The facts of the case as stated by the appellant, as verified in the remand report and as ....
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.... are DISMISSED." 6. Now the assessee is before the tribunal on various grounds contained in the memorandum of appeal and the first two grounds relates to the issue of failure on the part of the AO to dispose off the objections to the recorded reasons filed by the assessee in response to notice u/s 148 of the Act 61, vide a separate speaking order, before continuing with the assessment proceedings. 7. The Ld. AR of the assessee, has filed a paper book consisting 68 pages containing copies of all submissions filed before the assessing officer and CIT (A) and copy of the remand report dated 06/12/2018 and the response of the assessee to such report and written arguments filed before the CIT(A). The Ld AR also filed a judgement set containing 115 pages, which are the copies of various judicial decisions he relies upon in support of his arguments. He also files a brief synopsis which is placed on record. 8. At the very outset, the Ld. AR drew the attention of the bench to the fact that the AO has failed to dispose off the objections filed by the assessee to the recorded reasons, vide a separate speaking order, which was the mandate of law, as laid down by the Hon'ble Supreme court in....
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....f the bank statement issued by Punjab Gramin Bank, Kapurthala, which is placed in page number 11 to 13 of the synopsis and also refers to the cash flow statement for the period 01/04/2009 to 22/03/2010, placed in synopsis page number - 10 . 9.1 He submitted that it is the same bank account of the assessee with Punjab Gramin Bank, Kapurthala, A/c No 85050100036426, in the name of Smt Joginder Kaur (assessee) wife of Bukan Singh, which has formed the basis of initiation of reassessment proceedings and it is the same bank account which is the basis of AIR report. 9.2 He submitted that all discussions in the assessment order and the remand report and also in the Ld. CIT (A) order, relating to receipt of cash against agreement of sale of landed property and deposit of the same in bank account is related to the period financial year 2008-09 (relevant to the assessment year 2009-10) which is the immediately earlier year and the earlier year is not our concern. 9.3 He submitted that even if we focus on the bank statement for the period April 2009 till March 2010, which pertains to Assessment year 2010-11, the year under appeal, it will be seen that the opening bank balance as on 01/04/2....
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....the said addition may please be deleted. 10. The Ld. DR relied on the order of the CIT(A) and the remand report filed by the AO in course of first appeal proceedings, and retreated the same arguments contained in the CIT(A) order regarding the issue regarding disposal of objections by the AO, but he could not produce any legal judgments contra to the opinion expressed by the Hon'ble Gujrat High court in the case of General Motors India Pvt Ltd) (supra) . 11. From the comparative study of the date wise cash flow statement filed by the assessee vis a vis the Punjab Gramin Bank statement, contained in synopsis (page numbers 10 - 13), the Ld. DR, did not find any error in such statement, furnished by the assessee, which also cannot be termed as fresh evidence, because it is just a compilation and extract, from the same bank account statement, existing on record before the AO. 12. We have heard both the counsels at length and considered all the materials on record including the paper book and synopsis filed by the assessee and the various judicial citations referred to by the assessee. 12.1 We proceed to decide the issue on the merits of the case as contained in ground no 6 of the m....