TaxTMI 
TaxTMI 
2025 (2) TMI 1826
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....of the case, the Ld. Commissioner of Income Tax (Appeals) [here-in-after referred to as Ld. CIT (Appeals)] erred in upholding the initiation of reassessment proceedings and passing of the impugned order u/s 147 w.r.s. 144 dated 30.03.2022. 1.1. That on the facts and in the circumstances of the case, the impugned proceedings u/s 148 has been initiated in utter disregard of the express provision of the Act and thus the order passed u/s 147 w.r.s. 144 is without jurisdiction and therefore bad in law. 148 is time barred, void ab initio, as the same. 2.0. That on the facts and in the circumstances of the case, Ld. CIT(Appeals) gross erred in upholding the order of the Ld. AO where addition is made u/s 68 on client code modifica....
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....and the assessee has brought this unaccounted money in the books through CCM and hence Rs. 35,11,590/- has escaped assessment. Accordingly, notice u/s 148 of the Act was issued and reassessment proceedings were triggered. 4.1. A noticed dated 31/03/2021, was issued to the assessee asking the assessee to file return to which the assessee replied on 13/04/2021 stating that he has electronically filed his return on 19/07/2013 and the same return should be treated as electronically filed in response to the notice u/s 148 of the Act. Copy of the acknowledgement of the ITR was furnished. 4.2. On 14/12/2021, a notice u/s. 142(1) of the Act was issued by NFAC, Delhi asking the assessee to furnish the accounts and documents specified in the an....
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....9(1) be considered as final return e-filed in response to the notice u/s.148 and to provide us the reasons for issuance of notice. Even after this reply, In response to notice dated 11-03-2022 having DIN: ITBA/ AST/F/17/2021- 22/1040583679(1) which gave us 3 days time to submit the IT Return u/s 148 and hence the IT Return for A. Y. 2013-14 u/s.148 was filed by me on 12-03-2022 i.e. the very next day itself. I have provided all the details as and when demanded by you for all the notices issued in timely manner. Thus it is clear that I had replied to your notice u/s.148 within the time limit of 30 days. However till today i.e. 17-03-2022, I have not received the reasons for issuance of notice u/s.148. Also, I had attached the I.T.R. Acknowle....
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.... by you. I would certainly oblige to further requirements, if any. Therefore the order may please be passed on the basis of detailed facts & figures provided to you. For your reference the following attachments are made: 1. E-mail Reply dated 13-4-2021 2. Broker's Contract Notes 3. Calculation of income from commodity trades." 5.2. Finally on 26/03/2022, the AO gave reasons for the issue of notice u/s 148 of the Act and the same read as under: - "1. Brief details of the Assessee: - Assessee filed return of income for A.Y.2013-14 on 19/07/2013 declaring total income at Rs. 38,38,67014 1. Reason for reopening: - The DDIT (Inv), Unit 6(3), Mumbai vide letter dated 30.05.2019....
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....relevant to A.Y. 2013-14 has escaped assessment because of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for A. Y. 2013-14. It is pertinent to mention here that reasons to believe that income of Rs. 35,11,590/- has escaped assessment for A.Y. 2013-14 have been recorded above. In this case more than four years have lapsed from the end of the assessment year under consideration. Hence necessary sanction to issue the notice u/s.148 is required to be obtained separately from Principal Commissioner of Income Tax-27 as per the provisions of section 151 of the Income Tax Act, 1961." 5.2.1. The reasons were digitally signed on 31/03/2021 at 01:54 P.M. Approval wa....
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....e petitioner's broker, resulting in reduction of the petitioner's taxable income. The only basis for forming the belief is the report from the Principal Director of Income Tax and the application of mind to the report of the Assessing Officer along with the record available with him. This information and application of mind has led the Assessing Officer to form a reasonable belief that there is not only an escapement of income but there has been failure to truly and fully disclose all material facts and information as the modus operandi of shifting profits was not known to the Revenue as not disclosed by the petitioner when the Assessing Officer passed the order in regular assessment proceedings." 7.1. And held as under:- ....