AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 157
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....s leading to the said delay, the Ld. Counsel for the assessee has filed condonation petition a/w. affidavits in respect of each appeals. It was submitted by the Ld. Counsel that in Form-35 in column "whether notices/communications may be sent on email?, the assessee has opted as " No". That further, there was no communication or service of order to the assessee in physical/manual mode by the Department. Since the assessee has opted as "No" with regard to receiving of any communications/notices issued by the department to the email address of the assessee, therefore, delay occurred since the assessee was unaware about the order passed by the Ld. CIT(Appeals)/NFAC. The assessee came to know about the proceedings from the A.O at the time of passing of the assessment order providing appeal effect to the order of the Ld. CIT(Appeals)/NFAC. 4. That in so far the appeal No.444/RPR/2025 for A.Y.2011-12, the assessee has come to know through the appeal effect order dated 13.06.2025 passed by the A.O with regard to the order of the Ld. CIT(Appeals)/NFAC. 5. In this regard, the Ld. Sr. DR did not raise any objection regarding condonation of delay involved in captioned appeals. 6. Hav....
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....unt with the said bank during the accounting year under consideration." 8. The Ld. Counsel submitted that bank statement only demonstrates regarding cash deposit of Rs. 22,29,300/-. However, later at Para 5.3, the A.O also states that as per ITS details, the assessee had made deposits in cash aggregating to Rs. 1,08,11,930/- as against Rs. 22,29,300/-. For the sake of completeness, Para 5.3 of the A.O's order is extracted as follows: "5.3 As per information available on record by way of ITS details, the assessee had made deposits in cash aggregating to Rs. 1,08,11,930/- (as against Rs. 22,29,300/- revealed from the bank account statement] in his Bank account maintained with the said Bank, and further, he had earned professional receipts to the tune of Rs. 1,56,811/- from BMA Commodities (P) Limited and BMA Wealth Creators Pvt Ltd. Due to non-compliance to the notices and questionnaire by the assessee, the sources of deposits made in cash in the bank account and the nature of professional receipts remained unexplained/ unsubstantiated/ unverifiable." It was submitted by the Ld. Counsel for the assessee that the said ITS details were never provided to the assessee by t....
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.... "31. Thus, in the light of the decisions of the Delhi and the Bombay 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." 12. Further, the Hon'ble Bombay High Court in t....
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....informations available in his possession, based on which, he has formed the "reasons to believe" that certain income pertaining to the assessee had escaped assessment and therefore, without providing those informations which he writes were in his records and possession and which were used against the assessee, in such scenario, the reassessment framed based on such reasons is vitiated. Even the Ld. Sr. DR could not place any evidence on record to demonstrate whether such referred informations available on record in the office of the A.O, were also provided to the assessee for his response. Considering these facts on record, I hold that such reassessment framed is arbitrary, bad in law and void ab initio, hence quashed. 19. As the facts and issues involved in the captioned appeal remains the same as were there before me in ITA No.442/RPR/2025 for A.Y.2011-12, therefore, the decision rendered in ITA No.442/RPR/2025 for A.Y.2011-12 shall mutatis-mutandis apply to ITA No.443/RPR/2025 for A.Y.2012-13. 20. In the result, appeal of the assessee in ITA No.443/RPR/2025 for A.Y.2012-13 is allowed. ITA No.444/RPR/2025 A.Y.2011-12 21. At the very outset, the Ld. Counsel for the ....
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....sion of learned counsel for petitioner, in the opinion of this Court, is not acceptable in view of provisions of Section 282 (a) of the Act of 1961, which provides that notice or other documents to be issued for the purpose of the Act of 1961 by any income-tax authority shall be deemed to be authenticated if name and designation is provided. In approval under Section 151 of the Act of 1961, name, designation and office is printed. Hence, submission of learned counsel for petitioner that approval is not digitally signed is also not sustainable, more so when it bears DIN & Document Number." 6. That before responding to the submissions of the Ld. Sr. DR, it would be pertinent to extract the provision of Section 282A of the Act which reads as follows: "282A. (1) Where this Act requires a notice or other document to be issued by any income-tax authority, such notice or other document shall be signed and issued in paper form or communicated in electronic form by that authority in accordance with such procedure as may be prescribed. (2) Every notice or other document to be issued, served or given for the purposes of this Act by any income-tax authority, shall be....
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....office of a designated income-tax authority is printed, stamped or otherwise written thereon." 8. It is crystal clear from joint reading of Para-14 of the decision of the Hon'ble High Court (supra) and Clause (2) of Section 282A of the Act, that the Hon'ble High Court has referred deeming provision with regard to the authentication in respect of notice or other document if the name and office of a designated income-tax authority is printed, stamped or otherwise written thereon. There is no dispute that as per requirement of the provision for authentication of such notice, the presence of name and office of the designated Incomer Tax Authority, if it is printed etc. then it shall be deemed to be authenticated. However, this provision does not supersedes Clause (1) of Section 282A of the Act where it is mandatory first and foremost that the competent Income Tax Authority issuing any notice shall sign such notice or other document irrespective of such notice issued either on paper form or communicated through electronic form. Meaning thereby, signing of notice issued to the assessee is mandatory and that is not dispensed with by the deeming provision of Clause (2) to Section ....
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....ice, the same would not constitute a mistake or omission and would not be curable under the provisions of section 292B of the Act. 21. We are, therefore, of the considered opinion that in the present case, the notice u/s.148 dated 02.04.2022 having no signature affixed on it, digitally or manually, the same is invalid and would not vest the Assessing Officer with any further jurisdiction to proceed to reassess the income of the petitioner. Consequently, the notice dated 02.04.2022 u/s.148 of the Act issued to the petitioner being invalid and sought to be issued after three years from the end of the relevant assessment year 2015-16 with which we are concerned in this petition, any steps taken by the respondents in furtherance of notice dated 21.03.2022 issued under clause (b) of section 148A of the Act and order dated 02.04.2022 issued under clause (d) of section 148A of the Act, would be without jurisdiction, and therefore, arbitrary and contrary to Article 14 of the Constitution of India. Consequently, we quash and set aside the notice dated 02.04.2022 issued by the respondents u/s.148 of the Act, order dated 02.04.2022 under clause (b) of section 148A of the Act and noti....
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.... favour of the assessee therefore the grounds on merits becomes academic only. 26. As per the aforesaid terms the grounds of appeal raised by the assessee stands allowed. 27. In the result, appeal of the assessee in ITA No. 444/RPR/2025 for A.Y.2011-12 is allowed. 28. In the combined result, all the appeals of the assessee are allowed. Order pronounced in open court on 07th day of August, 2025. ============= Document 1 Reasons for initiating proceeding under section 147 The assessee has filed his return for the assessment year 2011-12 for an amount of Rs. 1,56,270/- on 19.07.2012. As per the information available on records of this office, the assessee has made cash deposits in a saving bank account with ICICI Bank Limited during the financial year relevant to the assessment year under consideration. - Rs. 22,29,300/- / Rs. 15,60,000/- Rs. 3,33,200/- Rs. 66,89,430/- Rs. 1,08,11,930/- 1. On 31.03.2011 2. On 31.03.2011 3. On 27.09.2010 4. On 08.09.2010 Although the assessee has filed his return of income u/s.139(1), but is not commensurate with the volume of investment made during the F.Yr. under consideration. On perusing the information avai....
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....though the assessee has filed his return of income, but on perusing the information available on record it seems that the assessce has filed his return only to the income relating to fees received on technical and professional services on which TDS has been made u/s 194J to the tune of Rs. 52,379/-, The gross total receipts under technical and professional services stand at Rs.5,23,790/ -. The source of huge cash deposits to the tune of Rs. 16,18,000/- at the fag end of the financial year and profit earned on trading in stock exchange remains unexplained for the assessment year under consideration. Thus, I have reasons to believe that income to the extent of Rs. 17,18,000/- has escaped assessment for A.Yr.2012-13 within the meaning of provision of section 147 read with explanation 2(b) of the Income tax Act, 1961 and therefore, I am satisfied that this is fit case to initiate proceedings u/s. 147. Hence, it is proposed to assess the escaped income as above and any such other income which comes to the notice subsequently in the course of assessment proceedings u/s.147 of the Act. Therefore kind approval may be granted for issuance of notice u/s. 148 of the IT Act, 1961. Bhi....