TaxTMI 
TaxTMI 
2025 (5) TMI 2089
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.... even date 23-12-2024, one in quantum proceedings confirming the addition made to the income of the assessee in assessment framed u/s 143(3) r.w.s 1437 of the Income Tax Act, 1961 (hereinafter referred to as the "Act") and the other confirming penalty levied under Section 271(1)(c) of the Act, both pertaining to Assessment Year (A.Y) 2010-11. 2. We shall first take up the assessee's appeal arising in quantum proceedings in ITA No.377/Ahd/2025. ITA No.377/Ahd/2025. A. Y 10-11 3. The grounds raised by the assesse are as under: "1 The order passed u/s 143(3) rws 144 is bad in law as well as on facts: 2 The learned AO erred in law as well as on facts in re- opening the assessment under section 147 without there be....
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....endent enquiry from the Sub-Registrar office who had certified that there was no record of the assessee trust in their Master Register. Ld. Counsel for the assessee contended, therefore, that having verified from an independent third party, that too a state authority, that no transaction of sale of any immovable property was conducted by the assessee during the impugned year, the basis with the AO for assuming jurisdiction to frame assessment u/s.147 of the Act failed, that therefore, the assessment framed by the AO was invalid and ought to be quashed. He drew our attention to the contents of the assessment order revealing the above facts as under: 6. Ld. DR, however, relied on the findings of the Ld. CIT(A) at page 7 of his order dismis....
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....transaction in sale of property thereby resulting in an income of Rs. 24,23,000/- as per the information available to AO on ITD. In view of the same AO has perused the appellant filling of return of income for this AY 2010-11 and on noticing the same being a non- filer, AO has issued 148 notice as per the due procedure. However, appellant did not file any ROI as needed as a response to this statutory notice by duly explaining the transaction involved in property if any along with supporting proofs as needed to explain appellant contentions as per law. In the absence of same, AO has issued further hearing notices from time to time seeking explanation of transactions in property as reflected in ITD against the appellant for Rs. 24,23,000/-. H....
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....e on the part of AO either in issuing the 148 notice as per the due procedure or in issuing these notices to the registered address of the trust as available with the Income Tax Department. " 7. We have heard both the parties. The assessee has challenged the assumption of jurisdiction by the AO to reopen the case of the assessee on the ground that his belief of escapement of income of the assessee was based on incorrect facts, which he himself found to be so while conducting inquiry regarding the same from independent sources. 8. The Ld. Counsel for the assessee has demonstrated this fact by pointing out that reopening was resorted to on the information that the assessee had sold immovable property during the impugned year but had not....
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....out examining and considering material facts available on record. The Hon'ble CIT(A) has erred in confirming the same. " 15. It was common ground that the impugned appeal pertains to the penalty levied on the assessee on account of addition made to its income in quantum proceedings, which has been dealt with by us in ITA No.377/Ahd/2025. Since, we have quashed the assessment order, the penalty does not survive . The appeal of the assessee, therefore, is allowed. 16. In the combined result, both appeals filed by the assessee are allowed. This Order pronounced on 09/05/2025 ============= Document 1 A.Y. 2010-11 Jindal Development Foundation Trust I.T.N.S-65 INCOME-TAX DEPARTMENT 1 Name of the assestee Jindal Deve....
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.... The asseesee did not filp dnycreoligthen series of notice U/s. 142(1) dated 31.07.2017. 12.09.2017. 20.09.201X 28:09: 2017. 27.10.2017 was issued but the asseesee did not comply with the details called for.'As per the ITD information the Document 2 A.Y. 2010-11 JIndal Development Foundation Trust. lend has been purchased by two persons namely Shree Nieshbhai Navinchandra Sheddhpura and Meenaben Kirtibhai Parmar. Information was called for this two person's u/s. 133[6] of the Income Tax Act. In response to the same the Shree Nileshbhai vide letter dated- 21.11.2017 informed that he has not transaction with Jindal Development Foundation Trust, Surendragar. There after a letter was sent . u/s. 133(6) to Sub Register Office, Surendra....