TaxTMI 
TaxTMI 
2025 (6) TMI 561
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....herefore, after recording reasons, reopened the assessment as per the provisions of section 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') and accordingly notice u/s 148 of the Act was issued on 26.03.2021. However, the assessee failed to file the return of income in response to the notice u/s 148 of the Act. Thereafter, statutory notice u/s 142(1) of the Act was issued on 28.10.2021 and again on 13.01.2022 was issued and served on the assessee which also remained un-complied with as per the Assessing Officer. The Assessing Officer, therefore, proceeded to complete the assessment as per the provisions of section 144 of the Act. 4. On perusal of information available with the department, the Assessing Officer noted that the assessee, during the year under consideration, has purchased immovable property amounting to Rs. 15,48,75,869/- on various dates, the details of which are as under: S No Name of Purchaser Amount Date of transaction 1 Ajay Sadashiv Bhagat 9215500 20.09.2014 2 As above 11000000 03.11.2014 3 As above 28900000 10.07.2014 4 As above 14162500 17.12.2014 5 As above 9831250 17.12.2014 6 As above 43200000 12.04.2014 7 ....
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....ellate proceedings. 6] The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal. 8. The assessee has also raised an additional ground which reads as under: "The notice issued u/s 148 is bad in law since the approval obtained by the learned A.O. is not as per the conditions laid down in section 151 and accordingly, the notice issued u/s 148 and the reasst. order passed u/s 147 be declared null and void." 9. The Learned Counsel for the assessee referring to the above additional ground submitted that the additional ground raised is purely legal in nature which goes to the root of the matter and all the necessary facts are already available on record. Referring to the decision of Hon'ble Supreme Court in the case of the National Thermal Power Co. Ltd. v. CIT [1998] 229 ITR 383 (SC) and in the case of Jute Corporation of India Ltd vs Commissioner of Income Tax And Anr (1991) 187 ITR 688 (SC) submitted that the additional ground raised by the assessee should be admitted. 10. The Ld. DR on the other hand strongly objected to the admission of the additional ground raised by the assessee on the ground that the assessee has not challenged the val....
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....sioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, the Chief Commissioner or Director General, as the case may be. He submitted that in the instant case the notice u/s 148 of the Act was issued on 26.03.2021 and the assessment year involved is assessment year 2015-16. Thus, more than three years have elapsed from the end of the relevant assessment year when the notice was issued. Therefore, the sanctioning authority is the Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, the Chief Commissioner or Director General. However, in the instant case the notice has been issued after obtaining the necessary satisfaction of Range 7, Pune which is the office of the Joint Commissioner or Additional Commissioner. Since there is no Range 7 for PCCIT or CCIT or Principal Director General or Director General, thus, the notice issued u/s 148 of the Act being not in accordance with law, has to be quashed and the subsequent proceedings also become void ab initio. 14. So far as the merit of the case is concerned, he submitted that the assessee i....
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....No 309 12-04-2014 6174/2014 Malpani Estate AALFM6549D 4,32,00,000 7 Village Sangawade GAT No 248 25-11-2014 6022/2014 Malpani Estate AALFM6549D 98,31,250 8 Village Chande GAT No 300 04-10-2014 8043/2014 Giriraj Enterprises AACFG1563G 2,87,38,369 Total 15,48,75,869 - Attachment - Copies of Index II of Said Purchase of Immovable Property and copy of ledger account in the books of the firm 15. Referring to sample sale deeds enclosed in the paper book, the Ld. Counsel for the assessee drew the attention of the Bench to the name of the assessee where it has been mentioned that the assessee is only a Power of Attorney Holder. He submitted that where the entire money has been paid by M/s. Malpani Estates / Giriraj Enterprises and the assessee was only a Power of Attorney Holder, no addition could have been made in the hands of the assessee when the concerned concerns have paid the money and shown those assets in their balance sheets and have also given confirmation to that effect. Since neither the Assessing Officer nor the Ld. CIT(A) / NFAC have applied their minds, therefore, the addition so made by the Assessing Officer and sustained by the Ld. CIT(A) / NFAC sho....
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....ng Officer shows that he has obtained the necessary satisfaction of Range 7, Pune. On a pointed query raised by the Bench to the Ld. DR regarding the head of Range 7, Pune, he fairly conceded that there is no Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General of Range 7, Pune and it is headed either by the Joint Commissioner or the Additional Commissioner. Under these circumstances, since the approval for issue of notice has been given by a JCIT / Addl CIT instead of the PCCIT or PCIT, therefore, we hold that the re-assessment proceedings being not in accordance with law have to be quashed. We, therefore, quash the re-assessment proceedings and the additional ground raised by the assessee is accordingly allowed. 20. Even otherwise on merit also, it is an admitted fact that the assessee is only a power of attorney holder and the name of the purchases mentioned in the sale deeds are M/s. Malpani Estates in 7 cases and Giriraj Enterprises in one case. The name and PAN of the purchaser has been clearly mentioned in the sale deed. The assessee had clearly and categorically replied before the Assessing Officer and the Ld. CIT(A) / NFAC t....