TaxTMI 
TaxTMI 
2025 (6) TMI 1909
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....risdiction over the Appellant. 2.2. The comprehensive objections raised by the Appellant against the reasons recorded by the Ld. AO, were outright rejected vide a non-speaking order by falsely invoking the provisions of section 292B of the Act. Also, the disposal of the reasons was in violation of decision of the Hon'ble Punjab & Haryana High Court in the case of CIT vs Norton Motors (2005) 275 ITR 595. 2.3. The Appellant was not granted four weeks' time to rebut the disposal of objections in as much as the objections were never disposed off vide a speaking order, but merely addressed in the impugned reassessment order itself. 3. That the impugned appellate order deserves to be quashed in as much as it violates the principles of natural justice because - 3.1. The order was passed without taking cognizance of the detailed written submissions and documentary evidences furnished by the Appellant before the Hon'ble-CIT(A). 3.2. The Appellant was not afforded a sufficient opportunity of being heard despite requesting for the same vide her written submission. 4. That the impugned addition amounting to Rs. 8,61,000/- made t....
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....t proceedings, were not disposed of in accordance with the ratio laid down by the Hon'ble Supreme Court in the case of GKN Driveshafts (India) Ltd. vs. Income Tax Officer [2002/259 ITR 19 (SC), pertaining to reassessment proceedings: In this regard it is humbly submitted that the Ld. /\.0 never disposed the objections of the Appellant, rather than he preferred to comment on the objections while framing the reassessment order. Before moving further, it is relevant to reproduce the relevant excerpts from the said judgment of GKN Driveshafts (India) Ltd. (supra). In the said case, the Hon'ble Supreme Court has observed that "the Assessing Officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the notice is entitled to file objections to issuance of notice and the Assessing Officer is bound to dispose of the same by passing a speaking order". When the said direction of the Supreme Court is read in the present context of the matter, it shall be clear that in this case, the objections were not disposed of by way of a separate order, rather the same is only dealt/ reproduced in the reassessment order. The argument is therefore that the ratio laid by the H....
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....at Rs. 60,000/- same as given in reasons recorded. However, the value taken is on an arbitrary basis without having any reasoning. In this regard, it is relevant to slate that in paragraph 4 of the assessment order dated 27.12.2018 for the A.Y 2011-12 of Mrs. Vinod Kohli, it is clearly stated that the said property i.c. Kothi, Sector-10, Faridabad had not been acquired by the appellant for renting purpose. The copy of the same is enclosed. The fact is that the same was demolished and floors were constructed and sold out. Thus, the said property was not in a condition to fetch rental income for the current assessment year i.e., A.Y. 2012-13. 3.4 With respect to fourth property i.e. "R.C Mall Floor, Moradabad (U.P)", the appellant hereby submits that the appellant had no such property located at / in R.C Mall, Moradabad (U.P.). Therefore, there is no occasion on the part of the Ld. AO to determine the annual letting value of such properly. The Ld. AO has taken annual let-table value at Rs. 3,30,000/- on an arbitrary basis without having any reasoning. The ALV of a property, which is not in the legally owned by the appellant cannot be added to the income of the appellant." ....
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.... the provisions of Section 147 of the Act that he acquires jurisdiction to re-open an assessment. Section 147 of the Act, clothes the AO with jurisdiction to reopen an assessment on satisfaction of the following: (a) The AO must have reason to believe that (b) Income chargeable to tax has escaped the assessment and (c) In cases where the assessment sought to be reopened is beyond the period of four years from the end of the relevant assessment year, then an additional condition is to be satisfied viz: there must be failure on the part of the Assessee to fully and truly disclose all material facts necessary for assessment. 15. In the present case, notice u/s 148 of the Act has been issued on 29.03.2018 in relation to A.Y. 2011-12. Hence, the reopening of assessment is beyond the period of four years from the 9 end of relevant assessment year. In such a scenario, as per the 1st proviso to Sec.147 of the Act, no action for initiation of reassessment proceedings for A.Y. 2011-12 could have been taken unless the AO had reason to believe that income chargeable to tax had escaped the assessment for a reason of failure on the part of assessee to disclose fully and truly all materi....
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....argeable to tax has escaped assessment. Before me, Ld. AR has submitted that the property from which the deemed rental income the Revenue proposes to 11 add does not belong to the assessee. When the property does not belong to the assessee, the question of taxing the deemed rental income does not arise. Revenue has not placed any material on record to demonstrate that the submission of the assessee of it not being the owner of the aforesaid properties is false/ incorrect. In the present case the AO prima facie has not done the bare necessary enquiry into the material received before he concluded that income chargeable to tax has escaped assessment. 20. I further find that the Hon'ble Bombay High Court in the case of Ankita A. Choksey vs. ITO [2019] 411 ITR 207 (Bom) has held that the reasons to believe that income chargeable to tax has escaped Assessment must be on correct facts. If the facts, as recorded in the reasons are not correct and the assessee points out the same in its objections, then the order on objection must deal with it and prima facie, establish that the facts stated by it in its reasons as recorded are correct. In the absence of the order of objections de....