TaxTMI 
TaxTMI 
2025 (9) TMI 272
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....on which the AO has issued notice. The notice issued by the AO u/s.148 of the Act is ab initio void and on this ground alone the reassessment deserves to be cancelled''. We find that if the assessee succeeds on the ground No.2 as there was no fresh material on which the AO has issued notice dated 31.03.2021 u/s 148 of the Act then our decision on other grounds including additional ground would be futile exercise. 3. Brief facts are as under:- The assessee is an individual and NRI. He is non resident in India and resident in Singapore. The assessee carries business in the manufacture and sale of gold jewellery in Chennai in the name and style under the proprietary-ship concern M/s Mustafa Gold Mart'. He filed the Return of Income for the AY 2013-14 on 19-09-2013 declaring an income of Rs. 7,86,15,040/- from business on profession. The case was selected for scrutiny by Central Circle 1(2) and the assessment was completed u/s.143(3) by ACIT/DCIT Central circle 1(2) Chennai vide order dt.10-03-2016 with a disallowance on General Expenses and Office Maintenance. Subsequently upon completion of the assessment, the case was transferred to the International Taxation, War....
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....eet of M/s. Adampur Distributors Pvt. Ltd., the accumulated reserves as on 31-3-2012 is Rs. 2,16,08,171/-, the deemed dividend is restricted to Rs. 2,16,08,171/-. 4. The assessee challenged the order of the AO before the ld.CIT(A) who dismissed the appeal of the assessee holding as under: "4.2 The appellant has not produced any details about the nature of transactions between the appellant and M/s. Adampur Distributors Pvt Ltd., except otherwise to state that there are business transactions. The nature of business of M/s. Adampur Distributors Pvt Ltd in this year is clearly export of food products which is in no way connected to Gold business, and it is seen that the appellant holds 99.98% of equity shares of M/s. Adampur Distributors Pvt Ltd. Thus, the nature of transaction between the appellant and M/s. Adampur distributors Pvt Ltd is in the nature of loan only. 4.3 With respect to Ground of Appeal No.12, the appellant pleaded that the orders of the Honourable ITAT may be followed. However, no evidence was furnished by the appellant. demonstrating that the transactions between M/s. Adampur Distributors Pvt Ltd and the appellant in this year are similar to the....
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.... do so...." In this case the Department had already collected documents and materials which were before the AO at the time of framing the original assessment. If the AO did not, for some reason, advert to such material or did not utilize the same, he surely cannot allege that the appellant failed to disclose fully and truly all material facts. Therefore we object to the allegation that the appellant failed in disclosing fully and truly all material facts. 6. Admittedly, this was a case where an order of assessment u/s.143(3) had been passed for the relevant assessment year. Accordingly, the AO was obliged to disclose as to which fact or material was not disclosed by the assessee fully and truly for the purposes of assessment of that assessment year so as to establish a vital linkage between the reasons and the evidence. In this case, all the relevant facts had not only been disclosed, but had also been considered by the AO, while considering while passing the original assessment order. 7. In the present case, having not made any statement that the material facts were not disclosed fully and truly, the jurisdictional condition has not been satisfied by the AO. Fail....
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....asssessee before us is that whether there was any fresh material on which the AO could issue notice dated 31.03.2021 u/s 148 of the Income Tax Act, 1961 ('Act' in short) in the facts and circumstances of this case. 8. While proceeding further, some judicial pronouncements of Hon'ble courts may be kept in mind. The Hon'ble jurisdictional High Court in the case of Commissioner of Income Tax - I Tiruchirapalli. Vs M/s.Trichy Steel Rolling Mills Ltd., T.C.A.No.1437 of 2010 dated 14.02.2022 held as under: "8. The only point arise for consideration in this appeal is whether the Assessing Officer is entitled to re-open the assessment under Section 147 of the Act. In this context, the Honourable Supreme Court has considered the various parameters required for re-opening a concluded assessment under Section 147 of the Act in the case of (Commissioner of Income Tax, Delhi vs. Kelvinator of India Limited) reported in (2010) 187 Taxman 312 (SC) wherein it has been observed as under:- "4. On going through the changes, quoted above, made to section 147 of the Act, we find that prior to Direct Laws (Amendment) Act, 1987, re-opening could be done under above two conditions and....
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....'reason to believe' had been explained in a number of court rulings in the past and was well settled and its omission from section 147 would give arbitrary powers to the Assessing Officer to reopen past assessments on mere change of opinion. To allay these fears, the Amending Acct, 1989, has again amended Section 147 to reintroduce the expression 'has reason to believe' in place of the words "for reasons to be recorded by him in writing, is of the opinion". Other provisions of the new section 147, however, remain the same" 5. For the aforesaid reasons, we see no merit in these civil appeals filed by the Department, hence, dismissed with no order as to costs." 8. Applying the judgment of the Honourable Supreme Court in the above case, which was also relied on by the Tribunal, the assessment proceedings initiated under Section 143 (3) of the Act was completed on 17.01.2001. Thereafter, the Assessing Officer issued a notice dated 09.09.2005 for re-assessment on the ground that certain income, which are liable for payment of tax, has escaped the assessment and it warrants reassessment. In the re-assessment order, it was merely stated that "it was notic....