TaxTMI 
TaxTMI 
2025 (6) TMI 1293
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....nd the Cross Objection filed by the assessee were heard together and are being disposed of by this common order. 2. Facts of the case, in brief, are that the assessee namely Parth Multitrade India Private Limited (formerly known as Swift Venture Private Limited) is a company incorporated under the Companies Act, 1956 (now Company Act, 2013). It filed its return of income on 23.09.2008 declaring total income of Rs. 8,653/-. The return was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). Subsequently, the Assessing Officer reopened the case on the ground that the assessee has received an amount of Rs. 22,27,00,500/- by way of share premium in the financial year 2007-08 relevant to assessment year 200....
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.... approval itself is incorrect, the mandatory condition as provided under section 151 of the Act has not been fulfilled and therefore the notice issued under section 148 of the Act without proper approval is invalid, without jurisdiction and the reassessment proceedings are therefore, liable to be quashed. 4.5 On the other hand, in the remand report, the Add. CIT has also accepted that the AO has taken the approval of Additional Commissioner of Income Tax, 11(2), Mumbai instead of specified authority as prescribed in law. 4.6 In this regard, the appellant has relied on the following judicial pronouncements wherein it is held that a notice issued u/s 148 without obtaining the prescribed sanction of the Chief CIT or CIT as la....
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....in law and in facts by not appreciating the facts that on the provisions of section 151(2) of the I.T. Act were not applicable in this case. The present case was selected of scrutiny first time therefore, the original provisions of section 151(2) were applicable in this case, where the prior approval of Joint Addl Commissioner of Income Tax was required. 2 Whether on the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in law and in facts by not appreciating the facts that the prior approval taken from the Addl Commissioner of Income Tax is correct as per the provisions of section 151(2) of Income Tax 1961 which were in effect at the time of reopening of the case. Hence notice issued u/s 148 was corr....
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....n of his mind. c. On the facts and in the circumstances of the case, AO has erred in making the addition of Rs. 22,50,50,000/- u/s 68 of the Income Tax Act 1961 as unexplained cash credit even though the appellant provided all information to prove the identity, creditworthiness and genuineness of the shareholders. Therefore, the same may be deleted. d. The learned AO was not justified in charging interest under section 234B of the Income Tax Act, 1961. e. The learned AO was not justified in initiating penalty proceedings under section 271(1) (c) of the Income Tax Act, 1961. f. The appellant craves leave to add, amend, and alter any or withdraw any grounds of appeal at or before the time of appeal hearing.....
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.... "Information is received from the office of the DCIT Central Circle-1 Aurangabad in respect of the assessee that the assessee has received an amount of Rs. 22,27,00,500/- by way of share premium in I 2007-08 relevant to I 2008-09. I of the companies from whom the said premium is received are paper/shell companies having address at Kolkatta or Mumbai. It is also seen that one of the operators of the said companies Shri. Jagdish Purohit has in the statement recorded u/s. 131 of the Act by the DDIT(INV)-1(3), Pune u/s. 131 given a list of companies which he has incorporated where in his employees are directors and gives accommodation entries by way of loan/advances and share application/share premium to other companies. From the list of ....
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....ng notice u/s 148 of the Act and obtaining the approval read as under: "151. (1) No notice shall be issued under section 148 by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice. (2) In a case other than a case falling under sub-section (1), no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Joint Commissioner, unless the Joint Commissioner is satisfied, on the reasons recorded by such Assessing Officer, t....