TaxTMI 
TaxTMI 
2025 (10) TMI 1230
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...., specific information was flagged as per Risk Management Strategy formulated by the CBDT under clause (i) to explanation (1) to section 148 of the Act. As per the specific information, Assessee has taken bogus accommodation entries in form of bogus sale amounting to Rs. 88,63,725/- by Rajiv Dhar Rs. 58,81,960/- by M/s. Hanuman Trading Company Rs. 58,69,416/- by M/s. Ultra Trade Mart Rs. 58,69,416/- by Lutan Pandit respectively during the financial year 2017-18 relevant to assessment year 2018-19. Intimation Letter under Section 144B dated 17.08.2022 was issued. Notices under Section 142(1) of the Act dated 23.01.2023 and 01.02.2023 were issued to Assessee. Show-cause-notice dated 13.02.2023 and 16.03.2023 were issued. The assessee furnished partial reply. Opportunity by VC was afforded on 21.03.2023. On completion of assessment proceeding, Ld. AO vide order dated 23.03.2023 disallowed purchases of Rs. 2,64,84,517/- and held Rs. 4,23,21,000/- as unexplained cash. 3. Against order dated 23.03.2023 of Ld. AO, the appellant/assessee preferred appeal before the Ld. CIT(A) which was partly allowed vide order dated 27.05.2024. 4. Being aggrieved, the appellant/revenue preferred pre....
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....3. In response there to no reply filed by the assessee. In response to show cause notice dated 13.02.2023, assessee replied on 09.03.2024 stating that the "system does not allow to furnish ITR against notice issued u/s 148, there may be some technical issues. The assessee furnished her ITR under Section 139(1) on 25th October 2018. 5.1 Assessee was required to file the ITR on or before 30th April 2022 in response to notice under Section 148 issued to her on 31.03.2022. Assessee failed to file a valid ITR in response to notice under Section 148. During the assessment proceedings the assessee submitted on 09.03.2022 that "system does not allow to furnish ITR against notice issued under Section 148, there may be some technical issues." The submission made by the assessee on 09.03.2022 is only after thought and to vitiate the assessment proceedings as assessee has made his submission not on facts but only assuming that there may be some technical issue. 5.2 As per section 148 of the Act, the assessee was required to furnish a valid ITR on or before 30.04.2022 but the assessee failed to comply with the provisions of section 148 of the Act. Hence, in the absence of valid return in ....
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....ome of the assessee under Section 69C of the Income-tax Act 1961. 5.6 It is observed that the assessing officer has made an addition of Rs. 4,23,21,000/- in the light of provisions enumerated in Section 69A of the Act. Section 69A is analyzed into its essential parts:- (a) The assessee must be found to be the owner. (b) He must be the owner of any money, bullion, jewellery or other valuable articles. (c) The said articles must not be recorded in the Booles of Account, if any maintained. 6. Learned Authorized Representative for the Respondent/Revenue relied on order of Ld. CIT(A). 7. From examination of record in light of aforesaid rival contentions, it is crystal clear that Ld. CIT(A) in para no.6 held as under: "6. Decision: I have carefully considered the facts of the case, the Assessment order, written submission of appellant and materials on records. Also, the judgments and decision of High courts, tribunals and various judicial authorities relied on by the appellant have been carefully gone through. The facts of the case as perused from the order of the AO is that the assessing officer on the basis of order u/s 148A(d) date....
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....al has been filed against order under section 147 r.w.s. 144 r.w.s. 144B dated 23/03/2023. In this appeal only the issues raised in the assessment order framed by National Faceless Assessment Centre (NaFAC) can be raised and be adjudicated upon. Thus, the ground raised is dismissed. b) Ground No.2 is against the assessment order framed without issuing mandatory notice u/s 143(2). During the course of assessment proceedings, in response to the show cause notice issued u/s 144 to frame best judgement assessment, the appellant vide letter dated 9th March 2023 submitted as under: "In this context, It is submitted, System does not allow to furnish ITR against notice issued u/s 148, There may be some technical Issues. It is respectfully submitted that, Assessee furnished her ITR u/s 139(1) on 25th October 2018 declaring gross total taxable income of Rs 6,80,674 /. You are hereby requested to consider earlier furnished return u/s 139(1) of Act for the purpose of Section 147 or say for instant assessment proceeding u/s 147 of income Tax Act 1961." The appellant raised through filing of additional grounds that no notice under section 143(2) was issued in ....
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....) Ground No. 5 is regarding making addition of Rs..2,64,84,517/- u/s 37 on account of bogus purchase without appreciating material available on record. As per para 3.4- Variation proposed of the assessment order the AO has stated the assessee has neither provided any ledger nor any bills /invoices in support of his purchase transactions Thus, the genuineness nor correctness of the expenses or purchases incurred by the assessee could be established and hence these purchases amounting to Rs. 2,64,84,517/- made with the parties mentioned above, are proposed to be added back to the total income of the assessee u/s 69C. Further, as per para 5- Variation proposed on the basis of inference drawn: total amount of Rs. 2,64,84,517/- of bogus/unverified purchases is proposed to be disallowed as business expense of the assessee u/s 37 and is to be added to the total income of the assessee. It is seen that the AO is not sure under which section he propose to make the disallowance of purchases and in the final Table of Variation the disallowance has been done as per discussion above without quoting the section. Now, since there is a disallowance of purchases i.e. an expense and not cons....
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....t, 1961. Section 69A is analyzed into its essential parts:- (a) The assessee must be found to be the owner. (b) He must be the owner of any money, bullion, jewellery or other valuable articles. (c) The said articles must not be recorded in the Books of Account, if any maintained. (d) The assessee is unable to offer an explanation regarding the nature and the source of acquiring the articles in question; or the explanation, which is offered, is found to be in the opinion of the Officer, not satisfactory. (e) If the aforesaid conditions are satisfied, then, the value of the bullion, jewellery or other valuable article may be deemed as the income of the financial year in which the assessee is found to be the owner. (f) In the case of money, the money can be deemed to be the income of the financial year. In the light of dissected view of Section 69A, it can be inferred that the Assessing Officer shall and is duty bound to controvert the explanations provided by the appellant in case such explanation is found not acceptable. In view of the above Section 69A cannot be triggered in this case. The onus was upon the AO to establ....