TaxTMI 
TaxTMI 
2025 (12) TMI 1178
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....2. The assessee has raised the following grounds of appeal: "1. Learned CIT(A) has erred in law and on facts of the case in upholding the reassessment proceedings initiated under Section 148, which was barred by limitation and invalid as per amended provisions, instruction no. 1/2022 and judicial pronouncement. 2. Learned CIT(A) has erred in law and on facts of the case in remanding the matter back to the AO. Under the facts and circumstances of the case, the ld. CIT(A) had no power to set aside the assessment, and it ought to have annulled the assessment. 3. Learned CIT(A) ought to have deleted the addition amounting to Rs. 13,98,554/- on account of 8% of cash deposits. 4. Learned CIT(A) has erred in law....
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....ssessee furnished cash book, bank statements and a summary of transactions in support. However, the Assessing Officer held that the assessee failed to produce reliable documentary evidence such as party-wise ledgers or APMC certificates. The Assessing Officer rejected the books of account under section 145(3) of the Act and treated the assessee as having been engaged in trading instead of commission agency, and applied section 44AD of the Act with respect to the cash deposits by estimating income at 8% of Rs. 1,74,81,925/-. 4. Aggrieved, the assessee filed an appeal and raised several grounds before the CIT(A) to the effect that the reassessment under section 147 of the Act was illegal and time-barred, that section 44AD of the Act was in....
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....ntention that the case is barred by the pecuniary limit of 50 lakhs in respect of re-assessments proceedings initiated beyond a period of 3 years from the end of relevant assessment year. In the instant case, the Assessing Officer finalized assessment order by estimating income at 8% of undisclosed income of Rs. 1,74,81,925/-, which is clearly below the specified limit of 50 lakhs with respect to re-assessments initiated beyond a period of 3 years from the end of relevant assessment year. The counsel for the assessee placed reliance on the case of Ahmedabad ITAT decision in the case of Prakash Babulal Bhandari v. ITO I.T.A. No.737/Ahd/2025, wherein Ahmedabad held that has ruled that a reassessment notice issued beyond the three-year limitat....
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.... "likely to amount to fifty lakh rupees or more" does not permit initiation of reassessment proceedings merely on the basis of gross transaction figures without undertaking a preliminary analysis of the nature of the entries and without forming a reasonable belief based on material that income escaping assessment exceeds the prescribed limit. 10. In the instant case, at the time of initiating proceedings u/s. 148A(d) of the Act, the assessee vide letter dated 28.06.2022 submitted that during the year under consideration, he was engaged in the business of earning commission on sale of onions under the name of "Akshit Trading". Further, the assessee submitted that as per available bank statement, there were transactions amounting to Rs. 1,....