TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 996
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....lnv.) Bhatinda without making proper preliminary enquiries and re-assessment proceedings were initiated for the purpose of verification which is not admissible under the law. b) That the Ld. CIT(A) NFAC Delhi has erred in confirming the action of the Assessing Officer in issuing u/s notice u/s 148 of the LT Act and further the prescribed authority had given its approval in a mechanical manner under section 151 of the I. T Act, 1961. c) That the Ld. CIT(A) NFAC Delhi has failed to appreciate that the notice u/s 148 was not served upon the assessee in the manned prescribed u/s 282 of the Act and thus the completion of assessment by the Assessing Officer is invalid and needs to be quashed. 3. Notwithstanding the above said grounds of appeal, that the Ld. CIT(A) NFAC Delhi has erred in confirming an additions of Rs. 15,00,06,000/- on protective basis under section 69A of the Act on account of un-explained cash deposits in the bank account despite the fact that the assessee had denied having maintained any current account No. 02831131002070 with OBC, Abohar and had filed copy of FIR lodged with police for fraudulently opening bank account in his name by M/s. Gaga Wine Trade and Fi....
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...., through bank channel, by utilising the cheque book of OBC bank but under signature of some " Raj Kumar " acting as authorised signatory of the assessee firm Mandeep Singh and Co. 3.2 It is also seen from record that the disputed bank account was operated by the above two parties ( through the authorised signatory ) and the assessee had no control over the said bank account and had no access to the cheque books and he has neither deposited any money in the said bank account nor withdrawn any money from the same and nothing belongs to him and has not derived and direct or indirect benefits from such financial transactions. As stated by the assessee the entire financial transaction has been done with malicious intention and it was never in the knowledge of the assessee and the entire exercise has been done by New Gagan Wines ( Prop Amit Doda ) for their personal benefits, being engaged in similar trade of alcoholic liquor ( as distributor as evident from Form 26AS). 3.1 The entire transactions of corelating purchase of alcoholic liquor are also recorded in the income tax portal in form 26AS in the name of the assessee, and the same is subjected to TCS collected at source ( u/s 206....
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....e u/s 148 of the Act in support of which he has filed written arguments which are reproduced below: "Our Arguments on the issue of re-opening of the case u/sec 148 of the Act: 11. No reason to believe/no satisfaction, since the reasons are recorded on the basis of borrowed information/satisfaction: a) It is very much clear from the order of the Assessing Officer that the entire proceedings are based upon the information transferred from the Investigation Wing (Bathinda). There has to be independent formation of belief by the Assessing Officer and, which is not there in the present case and there being no application of mind of the Assessing Officer and neither he has formed his own belief and, as such, the issuance of notice u/s 148 is not proper. b) There was no document or any other information in the file of the AO, on account of which the AO shall had formed his reason to believe. The whole exercise of re-opening of the case is based upon the information from the Investigation Wing and there is no application of mind by the AO. c) Reliance is being placed on the following judgments wherein it has been held that the 148 proceedings are bad in law in case, the reasons r....
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....n, the so-called reason recorded by the A.O could not be held the reason for proceedings under section 147/148 of the Act, since it was only an information and was not at all discernible as to whether the A.O has applied his mind to the information and independently arrived at a belief on the basis of material which he has before him the income of the assessee had escaped assessment". iii) Sh. Sanjeev Aggarwal vs. DCIT in ITA NO. 547/Asr/2011(Amritsar ITAT) "There is no dispute to the facts that the AO has recorded the reason with respect to Rs. 501000/- on the basis of information received from the Investigation Wing of the Income Tax department. It was also not in dispute that before recording the reasons, the AO has not applied his mind. Had he applied that mind, the amount of Rs. 5,01,000/- as suggested by the Investigation Wing of the Income tax Department could have been corrected before recording the reasons but the same has not been done, which in facts, has been done and mind has been applied only during the assessment proceedings by making confirmation from the Manager of Punjab & Sind Bank and that too on additional information received from Investigation Wing of the....
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....PB at page-11. From the perusal of the same it is clear that the cash is deposited in the said account and immediately, the amount is either transferred to M/s Gagan Wine Trade and Financiers Ltd or M/s New Gagan Wines, thereby proving the ultimate beneficiary of the amount deposited are only those parties. 12.6 The Account has been used only from 12.03.2012 to 26.03.2012. (relevant page-11 of PB) 12.7 Copy of FIR dated 13.02.2019, against Sh Amit Doda, Shiv Lal Doda and Gagan Doda (Owners of M/s Gagan Wine Trade and Financiers Ltd and M/s New Gagan Wines) and Sh Raj Kumar (their employee) was filed by the Assessee specifying the said facts. (Pg- 30-37 of PB). It has even been mentioned in the said FIR that the signatures of the Assessee have been forged in the said Bank account at the time of opening the bank account. 12.8 Further even Challan Form u/sec 173 of CRPC Act has even been filed by the Police department in the Court wherein Sh Amit Doda, Shiv Lal Doda and Gagan Doda (Owners of M/s Gagan Wine Trade and Financiers Ltd and M/s New Gagan Wines) and Sh Raj Kumar (their employee) have been treated as guilty by the Police. 12.9 Sh Amit Doda, Shiv Lal Doda and Gagan Dod....