TaxTMI 
TaxTMI 
TaxTMI 
2025 (5) TMI 2033
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.... 1961 (hereinafter referred to as "the Act") dated 04.03.2022 by the Assessing Officer, DCIT, Central Circle-29, New Delhi (hereinafter referred to as "ld. AO"). 2. Though the assessee has raised several grounds of appeal before us, the preliminary ground raised is challenging the assumption of jurisdiction under section 147 of the Act by the Learned AO. We deem it fit and appropriate to address the said ground first. 3. We have heard the rival submissions and perused the materials available on record. The Assessee company is engaged in the business of manufacturing of flavoured chewing tobacco, kivam, paan masala, mouth fresheners, confectionaries, silver leaf, ayurvedic medicaments etc. under the brand name "BABA". The Assessee comp....
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.... they had granted their approval in a mechanical manner. Now the short point that arises for our consideration is whether approval under section 151 of the Act granted in a mechanical manner for reopening the assessment would become fatal to the reassessment proceedings or not. This question is no longer res integra in view of the decision of Hon'ble Madhya Pradesh High Court in the case of CIT Vs. S. Goyenka Lime and Chemicals Ltd reported in 56 taxmann.com 390 (MP HC). The Special Leave Petition (SLP) filed by the revenue against this decision was dismissed by the Hon'ble Supreme Court reported in 64 taxmann.com 313. Further, we find that the Hon'ble Jurisdictional High court in the case of PCIT Vs. NC Cables Ltd reported in 391 ITR 1....
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....vant for the purpose of assessment. Admittedly, the unsecured loans received by the Assessee were sought to be examined by the Learned AO in the original scrutiny assessment proceedings vide notice under section 142(1) of the Act dated 17-11-2016 which are enclosed in Pages 1 to 4 of the paper book dated 23-2-2024. The assessee had filed its reply vide letter dated 12- 12-2016 which is enclosed in Page 6 para 5 of the paper book by furnishing the list of parties from whom unsecured loans have been received together with the confirmation. The Learned AO was duly satisfied with the same and did not proceed to make any addition in the assessment. Hence the Learned AO had indeed formed his opinion on the same. The said opinion is being sought t....
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....erior Films Pvt Ltd reported in 437 ITR 230 (Del). 7. In view of the aforesaid observations and respectfully following the aforesaid decisions, we hold that the reopening has been made in the instant case deserves to be quashed for more than one reason and is accordingly quashed. Hence the legal grounds challenging the validity of assumption of jurisdiction u/s 147 of the Act is allowed in the above-mentioned terms. Since the reassessment is quashed, the other grounds raised by the Assessee on merits need not be adjudicated and they are left open. 8. In the result, the appeal of the Assessee is allowed. Order pronounced in the open court on 07/05/2025. ============= Document 1 Form for recording the reason for initiating proce....
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....2) would not stand in the way of initiating proceedings u/s 147. Ne 17. |Reason in belief that income has escaped assessment As per Annexure "A 18. Which provisions of section 151 is applicable? : Sub-section (2) (a) Sub section (1) or (b) Proviso to sub- section (1) or [c) Sub section (2) 19. | Name & designation of AO with signature The quantum of income which has escaped assessment. : Rs. 1.65.00.000/- Wocheordresexiste (6303/pusregular assessment made By Whether A.Y. is related to search action, if ves. date of search : NO Section under which assessment made after : search action? : Which provisions of section 151 is applicable? : Sub-section (2) (Vijay Singh) DCIT. Cen....