2019 (9) TMI 1761

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....(hereinafter called ld. AO) to pass order u/s. 143(3) r.w.s. 147 of the Income Tax Act (Act) on the ground that re-assessment proceedings itself are bad in law, as the reasons recorded by for re-opening assessment were by different AO than the AO who passed the assessment order. 3. Fact in brief are that the assessee filed return of income on 26-07-2010, declaring loss of Rs. 33,622/-, which was processed u/s.143(1) of the Act. Thereafter, the case was reopened u/s.147 of the Act, after recording reason to believe and accordingly a notice u/s.148 of the Act was issued on 20-01-2012, which was duly served upon assessee. The reasons recorded are reproduced as under for the sake of convenience: Name of the Assessee :M/s. JGS Finvest S....

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....shares have been issued at face value of Rs.10 each and premium of Rs. 90 each-per share. The share application money has been received from the following entities: 1. Alpha Chemie Trade Agencies P. Ltd. 2. Talent Inforway Ltd. 3. Alliance Intermediatries & Network P.Ltd. 4. Buniyad Chemicals Ltd. From the above it is apparent that the concerns, viz. M/s. Talent Infoway Ltd. and M/s. Buniyad Chemicals Ltd., which are providers of bogus share application money are also applicants to the share application money received by the assessee for A.Y. 2010-11. In the return of income for A.Y. 2010-11, the assessee is showing NIL income which has been processed u/s. 143(1) of the Act at NIL income....

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.... The ld AR argued that assumption of jurisdiction on the part of the AO by issuance of such notice Ld.AR pointed out that the reasons for reopening the assessment u/s.147 of the Act were recorded by different AO, than the AO, who framed the assessment. Ld. AR referred to the reasons recorded a copy of it is filed at Pg.96 of the Paper Book and is re-produced elsewhere in this order and submitted that the reasons were recorded by the AO, Ms. Rajani V. Nair, Income Tax Officer- 2(1)(1), Mumbai, whereas the assessment was framed by different AO, Shri Manish Kasodekar, Income Tax Officer- 8(2)(1), Mumbai, dt.19-03-2013. It is a settled position that the persons who records the reasons, has to frame the assessment ultimately. Ld. AR relied heavi....