TaxTMI 
TaxTMI 
2025 (2) TMI 1328
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.... learned PR. CIT as under, on the following grounds of appeal: 1. That the order of the learned Principal Commissioner of Income Tax in so far it is prejudicial to the interests of the appellant, is bad and erroneous in law and against the facts and circumstances of the case. 2. That the order u/s 263 of the Act is bad in law as the order u/s 147 r.w.s 144 of the Act is neither erroneous in law nor prejudicial to the interests of the revenue. 3. That the learned Principal Commissioner of Income Tax erred in law and on facts in holding that the assessment order is prejudicial to the interests of the revenue on the ground that penalty proceeding u/s 271B of the Act is not initiated. 4. That the learned Prin....
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....d transactions and the assessee has also carried out multi-commodity transactions, as per commercial practice, 10% of the peak transaction has to be invested with the broker. The assessee has not placed on record details of actual net investment explaining the source of such investment in respect of quantum of the multi commodity exchange transactions. Therefore, the case was reopened by issuing notice under section 148 of the Act and reassessment was completed under section 147 of the Act, dated 30.03.2022 and addition was made of Rs. 2,16,18,182/-. Later on, the learned Pr.CIT called for the record and observed that the assessee has filed audit report in Form 3CB dated 27.01.2015. The assessee has got his accounts audited beyond the due d....
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....roceeding is an independent proceeding and need not mention in assessment / reassessment Order. During the course of assessment under section 143(3) of the Act, the audit report was available with the AO and he was satisfied that the penalty should not be initiated in this case and hence there was no penalty levied under section 271B of the Act in spite of audit report furnished after extended due date of filing of return as per section 139(1) of the Act. He further submitted that in the reassessment proceedings, the learned Pr. CIT has no power to direct the AO to make penalty under section 271B of the Act since in this case, the assessee was liable to get his books of accounts audited within the due date and in the first round of proceedi....
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....s, we noted that in the first round of assessment proceedings, the case was completed under section 143(3) of the Act. The return was filed by the assessee on 28.02.2015 along with Form 3CB of the Act, dated 27.01.2015 which was beyond the extended due date for filing of return of income under section 139(1) of the Act. The case was reopened after issue of notice under section 148 of the Act and case was completed under section 147 of the Act on the reason that the assessee has not recorded the Credit Card transactions and the source of 10% of deposit with the brokers were not explained. Accordingly, the reassessment was completed and the addition was made under section 69C of the Act. Accordingly, the total addition as made of Rs. 2,16,18,....