TaxTMI 
TaxTMI 
2025 (11) TMI 399
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....ear. Demonstrating the same, the Ld. Counsel brought to notice of the Bench at Page 69 of the paper book, wherein notice u/s. 148 of the Act as issued to the assessee for A.Y.2013-14 and the time period from the end of the relevant assessment year and the date of issuance of the notice which is 31.03.2021, therefore, such notice has been issued beyond four years from the end of the relevant assessment year. Further, the Ld. Counsel referred to the "reasons to believe" for the reopening of the case which is annexed at Pages 126 to 130 of the paper book. The Ld. Counsel on reading of the entire "reasons to believe" submitted that the department has not brought out any failure on the part of the assessee for not disclosing fully and truly all material facts necessary for the assessment proceedings. In fact, there is no whisper at all in the entire "reasons to believe" regarding any failure on the part of the assessee for not disclosing fully and truly all material facts relevant for the assessment. That as per the "1st proviso" to Section 147 of the Act as would be applicable for A.Y.2013-14, if the reopening has been done beyond the period of four years, the revenue must demonstrate ....
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....fficer has to record his conclusion that there was failure on the part of assessee in not disclosing fully and truly all material facts necessary for assessment of that particular assessment year, which is not appearing from the reading of the Annexure i.e. reasons for issuance of notice. 7. Considering the aforementioned facts and circumstances of the case, reason assigned for issuance of notice and provisions mentioned therein, in the opinion of this Court, there was no reason/ground available with Assessing Officer to issue notice under Section 148 of the I.T. Act. Issuance of notice under Section 148 of the I.T. Act to petitioner is not in accordance with the first proviso to Section 147 of the I.T. Act, therefore, it is not sustainable, which is liable to be quashed and it is hereby quashed. 8. The writ petition is accordingly allowed." 5. In the aforesaid binding decision, it has been laid down by the Hon'ble Jurisdictional High Court that when reassessment proceedings are initiated after lapse of four years, in such case as per the "1st proviso" to Section 147 of the Act, the A.O has to record his satisfaction that there was failure on the part of assess....
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....h deals with the contended issue before us: "147. Income escaping assessment.-If the Assessing Officer has reason to believe" that any income chargeable to tax has escaped assessment" for any assessment year, he may", subject to the provisions of sections 148 to 153, assess or reassess" such" income "and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings" under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under sub-section (3) of section 143 or this 'section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-se....
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.... invalid and without jurisdiction. For the sake of clarity, the observations of the Hon'ble Apex Court are culled out as under: "xxxx xxxx xxxx xxxx xxxx 30. If a statute expressly confers a power or imposes a duty on a particular authority, then such power or duty must be exercised or performed by that authority itself. (Dr. Premachandran Keezhoth Vs. Chancellor, Kannur University). Further, when a statute vests certain power in an authority to be exercised in a particular manner, then that authority has to exercise its power following the prescribed manner (CIT Vs. Anjum M.H. Ghaswala; State of Uttar Pradesh Vs. Singhara Singh). Any exercise of power by statutory authorities inconsistent with the statutory prescription is invalid............. xxxx xxxx xxxx &....
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....me reads as follows: "Assessee has filed his return of income for the A.Y.2013-14 but concealment of income is found. This case is within six years from the end of the assessment year under consideration. Accordingly, the proposal to issue notice under section 148 for the A.Y.2013-14 is being submitted in the case of the assessee for kind perusal and necessary approval as per the provisions of section 151 of the Income tax Act, 1961." If you have any objections to the reopening you are requested to submit the same within one week of receipt of this notice. In case no objection is received it will be assumed that you have no objection to continuing with the reassessment proceedings and details will be submitted. 2. Please submit the nature of business and computation of income for AY 2013-14. 3. Please submit profit and loss account and balance sheet highlighting the above transactions for AY 2013-14 4. Please submit the nature and details of the source of Rs 25,00,000/- with reference to reasons of reopening. 5. Please give name, address, Pan, email, ledger account, confirmation, creditworthiness of the persons related to loan o....
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....High Courts, as referred to above, the non-supply of the material, especially the documents of entry in the books of M/s Sanmatri Gems Pvt. Ltd. and the statement of Deepak Jain recorded under Section 132 (4) of the Act, is sufficient to vitiate the proceedings. 32. It may be noted that the statement recorded under Section 132 (4) of the Act can be used in evidence for making the assessment only if such statement is made in context with other evidence, or material discovered during search. A statement of a person, which is not relatable to any incriminating document or material found during search and seizure operation cannot, by itself, trigger the assessment. 33. In view of the aforesaid facts and circumstances, we are of the opinion that shorn of all other technical aspects which may have been raised before us, the very fact that the material referred to in the "reasons to believe" was not supplied to the petitioner, the entire proceedings for the reopening of the assessment and leading to the consequential assessment stand vitiated in law." 10. Further, the Hon'ble Bombay High Court in the case of Tata Capital Financial Services Limited Vs. Assistant Commis....