TaxTMI 
TaxTMI 
2025 (12) TMI 593
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.... A.O. has not recorded the satisfaction himself before issuing of notice u/s.148. whether the income has escaped as contemplated u/s.147 rws 148. 3. The Assessment order passed u/s.147 r.w.s 144 is bad in law as the company was defunct as on the date of issue of notice (20.03.2020) for re - opening of assessment proceedings u/s. 147 4. The AO was not correct in not accepting the Return of Income filed manually on 30.09.2020. though the same was acknowledged by his Office. 5. The A.O. was not correct in making addition for entire cash deposits into bank account to the tune of Rs.51,09,000/- without considering the Appellant explanation for sources for the same. 6. The A.O. was not correct in not considering the Interest on loan Rs. 77,14,000/-paid to lenders. which was claimed in Return of Income filed. 7. The AO was not correct in not considering the interest on loan as allowable expenditure as the Appellant has identified the parties from whom loans has taken and also submitted their Name and PAN etc. 8. The A.O. has failed to send letters for confirmation of loans taken from Lenders and also interest paid to them by invoking p....
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....by the Appellant. 9. The Appellant objects the levy of Interest u/s.234A and B consequential to the above additions. 10. The Appellant craves leave to add, to alter, to amend or to delete any of the grounds that may be urged at the time of hearing of the Appeal. Wherefore on the above grounds and on such other grounds the Appellant prays the Appellate Authority to delete the additions as above and may pass such other as the Appellate Authority deems fit 2. At the outset of hearing, it was noticed that the appeal filed by the assessee before the Tribunal is delayed. In this regard, assessee has filed an application dated 07.10.2025 stating the reason for delay in filing appeal before the Tribunal. On going through the above application, we noted that the assessee had sufficient reason and reasonable cause for delay in filing appeal before the Tribunal. Therefore, relying on the judgment of the Hon'ble Supreme Court in the case of Collector of Land Acquisition Vs. MST Katiji and Others, (1987) 2 SCC 107 : 1987 (2) SC, the delay in filing the appeal is condoned. 3. The grounds raised in these appeals are similar in both the appeals and were heard toget....
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....per the remand report, copy of the reasons recorded were supplied to the assessee (with proper DIN]. He noted that there was proper approval granted u/s. 151 sought by the AO from the Pr.CIT before reopening the case which was also provided to the assessee. The ld. FAA dismissed the appeal of the assessee. Aggrieved from the above order, the assessee filed appeals before the ITAT. 7. The ld. counsel for the assessee reiterated the submissions made before the lower authorities and submitted that before reopening the case u/s. 147/148, proper approval was not obtained as mandated u/s. 151 of the Act. He further submitted that the AO has wrongly issued notice u/s. 148. He further submitted that as Mr. D.S. Nandish has stated in the sworn statement that the entire cash deposits in the assessee's bank account are deposited by him, hence it should be assessed in the hands of Mr. Nandish, not in the hands of the appellant company. The AO has made addition of entire cash deposits in the bank account whereas the net income should have been added. The entire cash deposits are not the income of the assessee. The assessee as paid interest on such loans taken and interest paid thereon ha....
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....ng the rival submissions, we noted that a survey was conducted in the case of in the case of M/s Xentrix Studios P Ltd on 03.05.2017 and statements were recorded u/s. 131 of the Act, of Mr. D.S. Nandish which was reaffirmed in the statement recorded u/s. 132(4). During the search proceedings it was found that he has deposited cash in various bank accounts. The AO on the basis of information recorded during the survey in the case of Shri D.S. Nandish the reasons have been recorded for issue of notice and sought approval from the. Pr.CIT which is incorporated by the CIT(A) in his order. The notice issued by the AO u/s. 148 is correct. For the sake of convenience, we are reproducing the reasons recorded in ITA No. 1551/Bang/2025;- " Reasons for reopening of the Assessment in case of M/s H & F Games P Ltd for Asst Year 2013-14 u/s 147 of I T Act 1.Brief Details of the assessee: The assessee is not filling its return of income.. 2.Brief Details of the information collected/received by the AO : Survey u/s 133A of the Income-tax Act, 1961 was carried out in the case of M/s Xentrix Studios P Ltd on 03.05.2017. During the survey, it was found that Shri D S Nandish....
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....ned income of Rs.51,09,000/- chargeable to tax in A.Y. 2013-14 and has not filed its return of income. After due consideration of the facts of the case, I have reason to believe that income chargeable to tax has escaped assessment for Asst Year 2013-14. 7. Applicability of the provisions of section 147/151 to the facts of the case: In this case no return of income was filed for the Asst Year 2013- 14 and no rutiny assessment was made and the only requirement to initiate proceedings u/s 147 is reason to believe which has been recorded above as per para 5 & 6. It is pertinent to mention here that in this case the assessee has chosen not to file return of income for the year under consideration although the total income of the assesse had exceeded the maximum amount which is not chargeable to tax as discussed in paragraph 5 above and the assessee was assessable under the Act. In view of above the provision of clause (a) of Explanation 2 to section 147 are applicable to facts of this case and the assessment year under consideration is deemed to be a case where income chargeable to tax has escaped assessment. In this case more than four years have lapsed from the end o....
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....ition cannot be made u/s. 68. The coordinate bench of ITAT has explained the books of accounts in the case of DCIT vs GSNR Rice Industries S(P.) LTD reported in [2021] 128 taxmann.com 433 (Chennai - Trib.)/[2021] 90 ITR 114/ 213 TTJ 17. In this judgement it has been held as under:- "From the definition of 'books' or 'books of account', it is abundantly clear that books of account means regular books of account maintained by the assessee for any previous year to record day to day transactions of its business including ledgers, day-books, cash books, account books and other books. The term other books does not mean to include some dumb documents like diary, note book or deleted entries of computer CPU. The term other books refers to any other books which are relevant and in consonance with ledgers, day-books, cash books, account books, etc. Therefore, in order to include any other books of account maintained by the assessee within the ambit of term 'other books', those books must be relevant in the business of the assessee to keep track of transactions. Hence, other books refers to in the ordinary course of any business of the assessee are stock books....