2025 (7) TMI 505

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....erred to as 'the Act') dated 26.03.2013 by the Assessing Officer, DCIT, Circle-17(1), New Delhi (hereinafter referred to as 'ld. AO'). 2. The revenue has raised the following grounds of appeal:- "1. "On the facts and in the circumstances of the case and law, the Ld. CIT(A) has erred in quashing the re-assessment made by the AO u/s 147/143(3) when the AO has sufficient material on record to prove that the assessee has concealed particulars of its income." 2. "The appellant craves, leave or reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 3. We have heard the rival submissions and perused the material available on record. The assessee pleaded tha....

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....eged entry operators by the Investigation Wing of the Income Tax Department which were forwarded to the ld AO and which alone triggered the initiation of reassessment proceedings of the assessee vide issuance of notice u/s 148 of the Act. Hence, this is a clear case of borrowed satisfaction on the part of the ld AO. The statements recorded by the Investigation Wing were not forwarded to the assessee either by the Investigation Wing or by the ld AO in the readable format. It is pertinent to note that the certain impounded documents at the time of survey comprising blank share transfer forms, undated delivery notes, blank receipts of investing companies and power of attorney. It is not relatable to the year under consideration at all which fa....

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.... Hence, the estimation profit addition of Rs. 50 lacs has been rightly deleted by the ld CIT(A). 8. Before, the ld CIT(A), the ld AO vide letter dated 27.06.2016 gave the list of 4 parties seized documents which were impounded at the time of survey. They are as under:- a. Brightview Buildcon Pvt. Ltd b. Trinetra international ltd c. Kushal Infratech Pvt. Ltd c. Sachet Media Pvt. Ltd 9. Accordingly, the ld AO confirmed that this is the only information which he had at the time of recording the reasons for reopening the assessment and during the course of assessment proceedings. The assessee pleaded before the ld CIT(A) that these four parties have no transaction in any manner whatsoever with the assessee and they are not investors ....

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....ription is received from the entry operators. 2.8. From the above, it is clear that the Assessing Officer referred to the information received from the ADIT(Investigation) and other directions as "reasons" on the basis of which he proceeded to issue notice under section 148 of the Act. These cannot be the reasons for proceeding under section 147/148 of the Act. There is no evidence on the record to suggest that the Assessing Officer applied his mind to the information and independently arrived at the belief that on the basis of the material which he had before him income had escaped the assessment. Resultantly, the initiation of proceedings under section 147 and issuance of notice under section 148 of the Act are hereby quashed. 3. As t....