TaxTMI 
TaxTMI 
2025 (9) TMI 239
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....ged in shipping business. The assessee company filed its original return of income u/s 139 of the Act declaring income of Rs. 43,001/- for the AY 2018-19. The said return was processed 143(1) of the Act. Later on, notice u/s 148A of the Act was issued alleging that the assessee company has not paid tax due u/s 172 of the Act for goods departed through foreign shipping company via Indian ports. Statutory notices u/s 143(2) & u/s 142(1) of the Act were issued. The case of the assessee company was re-opened on the basis of receipt of information from Investigation wing that the shipping agents in Kolkata are involved in theft/Non submission of Income tax on earning of freight which was collected from foreign shipping agent/principals and accor....
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....e assessee was reopened and an order u/s. 148A(d) was passed in which it has been dealt that the assessee had undertaken suspicion transaction to the tune of Rs. 49,69,671/-, however, there was no addition made on the aforesaid ground, in stead of that the AO brought to tax of Rs. 1,91,63,984/- as deemed income u/s. 172(2) of the Act in respect of freight of Bangladesh based shipping line. According to him this fact goes to the root of the matter and the entire assessment proceedings become bad hence it ought to be quashed. In this regard, ld. AR relied on the following case laws :- i) Jet Airways Ltd., reported in 331 ITR 236 (Bom-HC) ii) Ranbaxy Laboratory Ltd., reported in 336 ITR 136 (Delhi-HC) iii) BB Poddar ....
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....on 147 of the Act. Hence, I am of considered opinion that this is a fit case for issuing notice u/s 148 and reopening of the proceedings under section 147 of the Income Tax Act 1961." 7. It is evident from the order u/s. 148D of the Act that the case was reopened solely to examine and making an addition of Rs. 49,69,671/- on account of alleged undisclosed suspicious transaction. While going over the assessment order dated 18.03.2023 we find that there was no addition made on the aforesaid ground, instead of that, the AO brought to tax of Rs. 1,91,63,984/- as deemed income u/s. 172(2) of the Act in respect of freight of Bangladesh based shipping line. It is pertinent to mention here that where no addition is made on the very ground formin....
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....ading of Section 147 is "income escaping assessment" and that of Section 148 "issue of notice where income escaped assessment". Sections 148 is supplementary and complimentary to Section 147. Sub-section (2) of Section 148 mandates reasons for issuance of notice by the Assessing Officer and sub-section (1) thereof mandates service of notice to the assessee before the Assessing Officer proceeds to assess, reassess or recompute escaped income. Section 147 mandates recording of reasons to believe by the Assessing Officer that the income chargeable to tax has escaped assessment. All these conditions are required to be fulfilled to assess or reassess the escaped income chargeable to tax. As per explanation (3) if during the course of these proce....