TaxTMI 
TaxTMI 
2026 (5) TMI 169
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....challenge the order passed under the Act. The action of the CIT(A) is not justified. 2. Without prejudice to ground no. 1. The CIT(A) erred in 2 upholding the reopening of the assessment under section 148 of the Act. 3. Without prejudice to ground no. 1, the CIT(A) erred in upholding that the notice issued by the JAO is valid. The CIT(A) did not comment on the various citations that the Appellant had filed. 4. Without prejudice to ground no. 1, the CIT(A) erred in upholding the action of the Assessing Officer denying the cross examination to the Appellant. 5. Without prejudice to ground no 1. The CIT(A) erred in holding that the evidences and statements recorded were correct without any opportunity being afforded to the Appellant to cross the deponents 6. Without prejudice to ground no.1, the CIT(A) erred in upholding the Assessing Officer action of making addition of Rs. 26,50,000/- under the provisions of section 69 of the Act." 3. Brief facts qua the issue are that return of income for the assessment year (AY) 2019-20 was e-filed by the assessee on 22/08/2019, declaring therein total taxable income of Rs. 8,58,020/-. The return of ....
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....nd Industrial plotting projects. The Group is headed by Shri Sarvanand Sadhuram Sonwani and he is supported by his family members in the management of the business. Important family members, offices, key associates, accountant and employees were also covered in the search and survey operation to get hold of important incriminating evidence. In the RK Group the main persons/partners were Sonwani family. Some projects of RK Group were developed with other groups also. The group was mainly involved in taking on-money/unaccounted cash on selling of units in its projects and giving on-money on purchasing of the land. The data of on money/unaccounted cash was being maintained in a very systematic manner in Miracle software. Miracle software was used mainly to record money/unaccounted cash transaction. However, banking transactions were also recorded as well. During the search action, the premise of Shri Girish Vanjani was also covered during the search action. Shri Girish Vanjani was a key employee and accountant of the Group. Shri Girish Vanjani was maintaining the accounts of the RK Group (including parallel unaccounted cash transactions. Mr. Girish Vanjani, in his statement recorded o....
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....essment order framed by the assessing officer, is bad in law, therefore, the re-assessment proceedings should be quashed. 8. On the other hand, Ld. Sr. DR for the revenue submitted written submissions, which, we have gone through. The ld.DR stated that approval has been given on line by the computer, hence it is not necessary to sign the approval given u/s 151 of the Act. 9. We have heard the rival parties and have gone through the material placed on record. For the sake of clarity and also being pertinent, we reproduce the approval given by the Income Tax Authority, under section 151 of the Income tax Act: 10. We note that the above approval u/s 151 of the Act is neither signed manually nor signed digitally, therefore, the re-assessment order u/s 147/148 framed by the AO is bad in law. For that, we rely on the order of the decision of the Co-ordinate Bench of ITAT, Rajkot in the case of M/s Aditya Plastic vs. ITO, ITA Nos. 185 & 186/Rjt/2024, order dated 03.09.2025, wherein it was inter alia held as follows: "6. The Ld. Counsel for the assessee argued that there is no signature/digital ID on the approval u/s.151 of the Act. Therefore, approval given by the AO to ....
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....following cases: i. Amitkumar Chandulal Rajani in SCA No. 2930 of 2022 dated 20- 01-2025, wherein it has been held that in absence of any link established by the A.O. between the material found from M/s. National Shroff and the reasons recorded and only relying upon the information received by the A.O. amounts to borrowed satisfaction and thus the assessment u/s 147 based on said reasons recorded is bad in law and is quashed. ii. Vijay Ramanlal Sanghvi (2023) 457 ITR 791 (Guj HC) wherein it was held that in absence of any tangible material to form an opinion that income chargeable to tax had escaped assessment and in absence of any satisfaction recorded by Assessing Officer by merely relying upon information received from Office of Deputy Commissioner, impugned action of reopening assessment while exercising power under section 148 could not be sustained. iii. Bhavin Jayendrakumar Soni (2024) 165 taxmann.com 109 (Guj. HC) wherein it was held that forming of 'reason to believe' is merely based on the information so received by the Assessing Officer. Thus, it cannot be said that the Assessing Officer has recorded its independent satisfaction, but on....
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.... Commissioner or Principal Commissioner or Commissioner of Income-tax is satisfied on the reason recorded by the assessing officer that it is a fit case for issuing such notice. The date and time of the approval granted digitally under section 151 of the Act and the date and time of the notice under section 148 of the Act, shows that the satisfaction was recorded by the PCTT digitally after the notice under section 148 was digitally signed. 29. In the present set of facts there was no valid satisfaction recorded by the by the Prescribed Authority under section 151 of the Act, 1961 when the Assessing Officer issued notice to the assessees under section 148 of the Act, 1961. At the time when the notice under section 148 of the Act, 1961 was issued by the Assessing Officer to the petitioner there was no valid satisfaction recorded by the Prescribed Authority ie. the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. Subsequent to issuance of the notice under section 148 of the Act, 1961 by the Assessing Officer, the satisfaction under section 151 was digitally signed by the Prescribed Authority. Therefore, the point of time when the ....
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....in the impugned assessment proceedings, are rendered academic and infructuous. 14. In the result, the appeal is allowed in the terms indicated above. Order is pronounced in the open court on 13/04/2026. ============= Document 1 $ ITA- 818/R/ 25 ALD- 4.2.26 DR GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE PRINCIPAL COMMISSIONER OF INCOME TAX PCIT, Rajkot-1 - Approval u/s 151 of the IT Act, 1961 '01 PAN: Assessment Year: Date: DIN: ABZPB9311K 2019-20 28/03/2023 ITBA/AST/S/118/2022-23/1051530292(1) 1. Name of the assesse PADMINI KALPESH BAVISHI 2. Address and e-mail of the assessee 0,ANAND MANGAL, BHAKTI. GODAWN ROAD,TAGORE MARG,RAJKOT / [email protected] 3 PAN ABZPB9311K 4 Status Individual 5 Circle/ Ward/ Range/ CIT Charge ITO WD 1(1)(1) , RKT / ADDL/JCIT RANGE 1(1), RAJKOT / PCIT, Rajkot-1 6 Assessment year 2019-20 7. The quantum of income which has escaped assessment 2650000 8 Approval needed for Issue of notice u/s 148 where there is no requirement for passing order u/s 148A(d) 9. Time limit for current proceedings covered under u/s 149(1)(a) - for 3 years 10 Limitation date for issuance....
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....his assessee for the A.Y. 2019-20. As per Explanation-2(iv) to section 148 if the Assessing Officer is satisfied, with the prior approval of Principal Commissioner or Commissioner, that any books of account or documents, seized or requisitioned in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee, the Assessing Officer shall be deemed to have information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee [where] the search is initiated or books of account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money. bullion, jewellery or other valuable article or thing or books of account or documents are seized or requisitioned in case of any other person. Therefore, in view of above and looking to the facts of this case I am satisfied on the reasons recorded by the Assessing Officer that this is a fit case for issue of notice us 148 of the Income Tax Act in the case of this assessee. Since all the conditions are satisfied, sanction us. 151 of the IT Act, 1961 is accorded to initiate pr....
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...., Rajkot. d. In the search operation, the premise of Shri Girish Vanjani was also covorod. During the course of search and seizure action, the residential premise of Shri Girish Vanjani, who is the accountant of the RK group was also covered u/s 132 of the Act. The digital data that has been imaged and seized from the residential premise of the accountant Shri Girish Vanjani (Premise A-7) have been inventoried as Annexure A-16. From the digital data, multiple miracle files have been found. During the recording of the statement of Shri Girish Vanjani u/s 132(4) of the Act, he stated that the data entered in Miracle is to be read as a multiplication of 100 and the date mentioned in backdated by ten years. Shri Sarvanand Sadhuram Sonwani has also confirmed that the data entered in the Miracle accounting software is related to the business of the RK Group. The statement of Shri Sarvanand Sonwani was also recorded during post search on 18.10.2021 u/s 131 of The Act. In response to Q.15 he has accepted that the Miracle files contain data of their various real estate projects and their cash inflows and outflows. e. The data of receipt of on money related to project "The city centre"....