TaxTMI 
TaxTMI 
2025 (8) TMI 422
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....ck from Kerala after the treatment of Cancer and approached the Counsel to know the status of the first appeal filed by the assessee he came to know that the Ld.CIT(Appeals) passed order on 10.08.2023 and this was noticed on checking the mail address given in the return of income. It is submitted that after knowing this fact the assessee immediately took steps to file appeal before the Tribunal through speed post on 22.01.2023 which was received by the Assistant Registrar on 23.01.2023. Therefore, it is thus submitted that the delay in filing appeal before the Tribunal is due to non-service/non-receipt of appellate order and in bona fide belief that first appeal is still pending and there is neither willful nor wanton in delay in filing of appeal. 3. On hearing both the parties and perusing the reasons and affidavit filed by the assessee for the delay, in my considered view there is reasonable cause for the delay in filing appeal before the Tribunal and the said delay of 119 days is condoned and the appeal is admitted. 4. The Ld. Counsel for the assessee submitted that the assessee filed an additional ground which is purely a legal ground and goes to the root of the matter an....
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.... 4. VRC Township Pvt. Ltd., Delhi Vs. ITO, Delhi in ITA No.1503/Del/2017 vide Order dated 14.10.2020 (paras 6 & 7); 5. Kalpana Shantilal Hariya Vs. ACIT W.P. No. 3063/2017 (Bom. HC) (paras 7 and 8). 7. Heard rival submissions and perused the orders of Authorities below. It is observed that in the following judgment in the case of Rakesh Kumar Aggarwal Vs. ITO in ITA No.699/Del/2020 dated 17.08.2023 an identical issue was adjudicated as under: - "3. The grounds of appeal raised by the assessee are two folds; (i) challenge to the assumption of jurisdiction under Section 147 r.w. Section 148 r.w. Section 151 of the Act; (ii) challenge to the action of the Assessing Officer in making certain additions/disallowances on merits in pursuance of assumption of jurisdiction under Section 147 of the Act. 4. When the matter was called for hearing, the ld. counsel for the assessee strongly voiced his objections on assumption of jurisdiction available under Section 147 of the Act and raised wide ranging objections towards lack of jurisdiction. The objections so raised are dealt with in the succeeding paragraphs at appropriate place. The ld. counsel also as....
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....f initiating proceeding under Section 147. N.A. 11. Reasons for the belief that income has escaped assessment. An information via e-mail was received from ADIT (Inv.) Unit-1(3), Ahmedabad vide letter No. ADIT (Inv) 1(3)/AHD/CCM/ Dissemination/ e-mail/ 15-16 dated 17.03.2016 in respect of Client Code Modification (CCM). Dissemination of beneficiary clients who have taken contrived losses and shifted out profits during the F.Y. 2008-09 to 2011-12. The Ahmedabad Investigation Directorate, as an institutional response to orchestrated misuse for client code modification for tax evasion, carried out coordinated limited purpose surveys us 133A of the Income Tax Act. 1961 at the premise of 12 brokers and few of their clients across India on 23.03.2015. the survey report was prepared by the ADIT(Inv) Unit-13), Ahmedabad on the basis of data received from National stock Exchange (NSE). After analysis or data received from NSE and after considering the contention of brokers, it was concluded by the ADIT that CCM has been used as a tool for tax evasion and only settled trades have been considered to arrive at the beneficiaries. The assessee who have taken losses of Rs. 1,00,0....
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.... through Client Code Modification (CCM) based on so called information received from Ahmedabad Unit of the Department but however no specific details of transactions involving CCM is discernible from the reasons recorded. The reasons recorded are, thus, without the identity of the transactions alleged to be source of contrived losses and shifting of profits. The reasons recorded are thus clearly vague and non- descript and hence such reasons cannot be construed to hold 'reason to believe' towards escapement of chargeable income as contemplated in Section 147 of the Act. Consequently, the condition of main provisions of erstwhile Section 147 of the Act is also not fulfilled. (iii) The Assessing Officer as per row no.8 of the approval memo (reproduced above) has proceeded on the assumption that the assessment proposed to be made for the first time in sharp contradiction to the fact on record that assessment was already carried out earlier vide order dated 24.08.2011 and hence the reasons recorded suffers from factual error of foundational nature. (iv) the assessment proceedings have been initiated on the basis of incomplete and vague information received fro....
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....xatious proceedings is apparently without any elementary details. On a reading of reasons recorded, it gives an impression that Assessing Officer has acted on dotted lines at the dictate of investigation wing without application of mind on the basic and elementary facts. Besides, while recording the reasons, the Assessing Officer has not taken cognizance of the fact that assessment has already been framed under Section 143(3) of the Act in the past. Once the assessment has been carried out under Section 143(3) of the Act, the 1st proviso casts exemplary burden on the Revenue to shun embargo of limitation. The onus lies on the Revenue to point out that there is a failure on the part of the assessee to disclose material facts fully and truly indeed. The onus placed by 1st proviso has been clearly overlooked in the instant case. Furthermore, it is apparent that Pr.CIT has also acted perfunctorily while granting approval sought by Assessing Officer under the shelter of Section 147(b) of the Act as pointed out on behalf of the assessee. 10. We have thus no hesitation to hold that the jurisdiction assumed under Section 147 of the Act in the instant case suffers from multiple jur....