TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 997
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....he facts and circumstances of the case and in law, the notice u/s 148 of the Act dated 28/03/2021 is illegal and bad in law as per first proviso to section 147 of the Act. 3. That on the facts and circumstances of the case and in law, the notice u/s 148 of the Act dated 28/03/2021 is illegal and bad in law, as the same has been issued on the basis of change of opinion by the assessing officer. 4. That on the facts and circumstances of the case and in law, the notice u/s 148 of the Act dated 28/03/2021 is illegal and bad in law, as the same has been issued on the basis of borrowed satisfaction/no independent reason to believe of the assessing officer. 5. That on the facts and circumstances of the case and in law, the Id. CIT(A) erred in remanding the matter to the assessing officer as per proviso to section 251(1)(a) of the Act and failed to adjudicate on legal ground as well as on merits of the case as raised before him. 6. That on the facts and circumstances of the case and in law, the Id. AO as well as CIT(A) erred in making an addition of Rs. 1,20,00,000/- u/s 68 of the Act. 7. The appellant craves to add, alter or delete any of the above grounds of appeal during the c....
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....47 r.w.s. 144 of the Act. It is important to mention here that the except this proceeding there is no even a single default on the part of the appellant wherein the appellant was exposed to many such proceedings in the earlier years. However, as the appellant missed to check the initial notice issued u/s 148, therefore, all the proceedings subsequent to it also missed resulting in an ex parte order. The assessee company at a very later stage on 29/05/2023 came to know about the recovery proceedings being undertaken in lieu of the ex parte order passed in the case and instantly took the remedial action. Accordingly, the instant appeal has been prepared along with the application for condonation of delay, which may please be considered and allowed. The assessing officer made an addition of Rs. 1,20,00, 000/- to the total income of the appellant on the issue of share application money from Neuraty Agents Private Limited, which is a group company of the appellant. The assessing officer did not mentioned the details of any information on the the basis of which present proceedings has been initiated, however it is stated that information has been received. The appellant has filed a let....
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....ellant. As a result, the Ld. AO made assessment u/s 144 r.w.s. 47 of the Act. 9. Under the appeal, the appellant has, inter alia, submitted that the assessing officer had issued notice u/s 148 dated 28/03/2021 which was sent on email id:[email protected]. On the said date, the director of the appellant company namely Shri Sushil Kumar Malani who was aged 71 years was not keeping good health due to COVID infection which he was exposed first in August 2020 and thereafter again in the month of April 2021. On account of this Shri Sushil Kumar Malani director was in complete isolation for a period of 3 months from the date of detection of infection with COVID 19. Further during the month of April, 2021 the director lost his father Shri Bilas Rai Malani who die on 17/04/2021. The director was stressed and disturbed due to these continuous health issues in the family. Later in the month of November 2021 the family Malani family lost their control in the flagship company Salasar Steel and Power Limited which was referred for insolvency proceeding order for resolution plan was passed by the Cuttack Bench of NCLT on 08.11.2021, resulting in loss of Rs. 34.58 crore to the appellant comp....
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....uations, the Assessing Officer has to make an assessment based on the available knowledge and resources. This type of assessment is invoked when the taxpayer is uncooperative or withholds essential information. It often happens when the taxpayer does not provide the necessary cooperation during the assessment process, hindering the assessing officer's ability to make an accurate assessment. In such cases, the assessing officer resorts to making the assessment based on the information at hand. 13. Before resorting to a best judgement assessment, the AO must make reasonable efforts to obtain the necessary information. This includes sending notices to the taxpayer, providing sufficient response time, and offering multiple opportunities to rectify discrepancies. The best judgement assessment should be conducted prudently and reasonably. The AO must exercise caution and ensure that the assessment is based on facts, evidence, and sound reasoning. It should not be arbitrary or biassed. The assessment should rely on objective criteria rather than personal opinions or biases. The AO should consider relevant laws, regulations, precedents, and established principles while making the ass....
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....rementioned amendment and discussion, and the fact that the director of the company who was responsible for replying to the notices was facing health issues and lost his father during that time and therefore could not participate during assessment proceedings and now the appellant is willing to submit the details and wishes for an opportunity to present the same, it would be appropriate to set aside the order passed under Section 144 and remand the case to the Assessing Officer (AO) for fresh adjudication. The appellant shall submit all the relevant details to the Id. AO, who will examine them on their merits. Accordingly, the case is remanded back for a fresh assessment. 21. In the result the appeal is allowed for statistical purposes. 5. Aggrieved with the aforesaid order of Ld. CIT(A), assessee preferred an appeal before us. 6. At the outset, Ld. AR on behalf of the assessee submitted that though the issues raised by the assessee in appeal before the First Appellate Authority are set aside to the file of Ld. AO, however, the legal grounds raised by the assessee which could have been decided are not adjudicated by the Ld. CIT(A), whereas such issues needs to be looked into, a....