TaxTMI 
TaxTMI 
2025 (8) TMI 525
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....tive credit society ltd. Shri Renuka Mata Multi state Urban Cooperative credit society ltd has deposited the said amount in their Axis Bank Account. The said deposit is transferred from their Axis Bank account to the Axis Bank account of the factory towards the purchase of sugar products by the traders. 3. The AO has erred in not considering that the credits received in the Axis Bank accounts are towards the purchase of Sugar and other product from the traders. 4. The AO has erred in considering the fact that the amounts received through the said society are the proceeds of the product sales amount received from the buyers and the same has been accounted as sales in the books of accounts of the factory and the same has already been offered to income tax by disclosing while filing the Income Tax Return of the sugar factory. 5. The AO has erred in considering the fact that the said deposit of Rs 9,02,82,885 in the said bank as the own amount of the sugar factory instead of considering the same as the sale proceeds of the products of the sugar factory which has already been offered to tax. 6. The AO has erred in not considering the fact that the sug....
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....cause, the Assessing Officer has no "reasons to believe" that income has escaped Assessment. The formation of reason to believe and recording of reasons are imperative before reopening of a completed Assessment. The reasons recorded by the Assessing Officer are not clear and suffer from vagueness. The Assessing Officers "reasons to believe" recorded were not reasons but only conclusions and a reproduction of the conclusion in the investigation report received from the Investigation office. It was a "borrowed satisfaction". Hence, the Order of Assessment is without any reasons to believe for escapement of income and hence the same needs to be set aside. 4. The AO has erred in not considering the fact that the traders have deposited the cash in Shri Renuka Mata Multi state Urban Cooperative credit society Itd. Shri Renuka Mata Multi state Urban Cooperative credit society Itd has deposited the said amount in their Axis Bank Account. The said deposit is transferred from their Axis Bank account to the Axis Bank account of the factory towards the purchase of sugar products by the traders. 5. The AO has erred in not considering that the credits received in the Axis Bank ....
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....sequently, the assessee filed the revised return on 02.12.2013 declaring total income of Rs. NIL. Thereafter the return was processed under 143(1) of the Act. Subsequently, the case was selected for scrutiny under CASS and accordingly notices u/s. 143(2) and 142(1) of the Act were issued calling for details, books of accounts and bills and vouchers. In response to notices issued, the assessee appeared from time to time and submitted the details called for along with the books of accounts, bills and vouchers which were verified by the AO. Thereafter, the AO concluded the assessment u/s. 143(3) of the Act vide order dated 01.03.2016 on a total income of Rs. NIL and agriculture income of Rs. 15,32,936/- and accordingly, tax payable was also NIL. The AO calculated the alternate minimum tax payable u/s. 115JC amounting to Rs. 1,59,210/-. 3.1 Thereafter, the case was reopened u/s 147 of the Act on the basis of the following reasons- "The assessee NANDI SAHAKARI SAKKARE KARKHANE NIYAMIT (AAAAN0815F) has received deposit amounting to Rs. 9,02,82,885/- in its Axis bank branch Jamkhandi a/c. no. 910010038062624. The amount is received from Sri Ranukamata. The findings of aforemen....
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....Ltd. and assessee in its reply could not explain a single receipt up to satisfaction. iii. It is highly unlikely that such a voluminous transactions are there on records [in bank statement] and the assessee does not have any details available about such party. 3.4 In view of the above, the AO held that the transactions with M/s. Renuka Mata Multi State Urban Co-operative Credit Society are presumed to be dubious in nature. The assessee by way of not filing any relevant details specific to the transaction has strengthened this presumption. The amount received from M/s. Renuka Mata Multi State Urban Co-operative Credit Society and other such bodies are effectively found to be the own money of the assessee. Since the assessee could not provide specific details of the transactions and their respective places in books of account, the AO presumed that these receipts are recorded into the books. The same was therefore considered to be Unexplained money of the assessee as per Section 69A of the Act and is to be taxed as per Section 115BBE. Accordingly, the AO concluded the assessment on a total taxable income of Rs. 9,02,82,885/- and taxable income u/s 115JC to be Rs. 15,93,17,....
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....e. Further, ld. DR submitted that notice u/s. 148 of the Act issued under the extended time period allowed under TOLA, 2020 up to 31.03.2021. 9. We have heard the rival submission and perused the material on record. It is an undisputed fact that originally the assessment in the case of the assessee was completed u/s. 143(3) of the Act vide order dated 01.03.2016. Thereafter, the AO initiated the reITA assessment proceeding u/s. 147 of the Act by recording his reasons and accordingly, notice u/s 148 of the Act dated 31.03.2021 was served upon the assessee. The order u/s. 147 was passed on 31.03.2022 determining the total income of the assessee at Rs. 9,02,82,885/- Before us, the counsel for the assessee challenged the initiation of the reassessment proceeding u/s. 147 on the ground that notice u/s. 148 of the Act dated 31.03.2021 is barred by limitation due to the fact that the regular scrutiny assessment u/s. 143(3) of the Act is concluded on 01.03.2016 and the notice for reassessment is issued after a gap of 7 years from the end of the relevant assessment year. 9.1 As per the first proviso to section 147 of the Act, where an assessment under subsection (3) of section 143 has....