TaxTMI 
TaxTMI 
2025 (8) TMI 1811
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....ct that the reopening of assessment proceedings is bad in law, without jurisdiction and has no backing of the law. 1.2 Under the facts and in law, the learned CIT(A) erred in not considering the fact that the reopening is merely on the basis of change of opinion without any reason to believe that any income has escaped assessment. The learned CIT(A) failed to appreciate that instant case is of reason to suspect and not reason to believe that income has escaped assessment. 1.3 Under the facts and in law, the learned CIT(A) failed to consider the fact that the Learned A.O has no concrete evidence to reopen the case. The same has been reopened merely on the basis of newspaper cuttings and an allegation that director of the company, Mr. Jagdish Bodra, is arrested for loan taken by forging signature of other directors. Further, the learned A.O has also relied on findings of Investigation Wing that the appellant company is a bogus entity. 1.4 Under the facts and in law, the learned CIT(A) erred in confirming the reopening based on reasons recorded by the learned A.O which are vague and based on borrowed satisfaction, without having done any further enquiry or p....
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....ning of money or decrease in other liability which would also indicate siphoning of money. 5.2 Under the facts and in law, the learned CII(A) erred in considering the fact that the learned A.O has not placed any concrete material evidence on record to prove its contention and acted purely on speculation. 6. Under the facts and in law, the learned CIT(A) erred in confirming disallowance of Rs. 55,76,87,000/-being claim for bad and doubtful debts written off. 7. Under the facts and in law, the learned CIT(A) erred in confirming addition of Rs. 5,27,27,215/-u/s69C r.w.s 115BBE of the Act, considering the same as bogus purchase. 7.1 Under the facts and in law, the learned CII(A) erred in confirming that the appellant is a beneficiary from Girish Karamshi Bodhra (brother of director) relating to fund transfer by way of bill payment for import on account of bogus purchases in relation to siphoning of loans and money. 8. Under the facts and in law, the learned CII(A) erred in confirming addition of Rs. 150,09,34,430/- to the income of appellant u/s 69C r.w.s 115BBE of the Act. 9. Under the facts and in law, the learned CIT(A) erred in ....
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....case of Union of India vs. Ashish Agarwal [2022] 444 ITR 1 (SC), the AO issued a notice under section 148A(b) on 30.05.2022 providing two weeks time for the assessee to respond to the notice. The assessee did not respond to the notice and accordingly the AO passed an order under section 148A(d) and the notice under section 148 on 27.07.2022. The AO passed the final assessment order on 29.05.2023 assessing the income of the assessee at Rs. 1251,64,90,578/- for AY 2013-14 and at Rs. 109,73,25,547/- for AY 2014-15. On further appeal, the CIT(A) confirmed the additions / disallowances made by the AO. Though the assessee raised various grounds contenting the issue on merit during the course of hearing, the ld. AR submitted that if the legal ground with regard to notice under section 148 for both the AYs is consider and allowed then the rest of the grounds would become academic. Accordingly we will first proceed to adjudicate the legal contentions of the assessee. 3. The main contention of the ld. AR before us is that the notice under section 148 issued by the AO is barred by limitation. The ld. AR argued that as per the decision of the Hon'ble Supreme Court in the case of Union o....
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....ll first understand legal position in this regard. Under the new regime of reassessment, the sequence of initiation of the proceedings is as under - (i) First the notice under section 148A(b) as why the notice under section 148 should not be issued based on the information that income has escaped assessment. The AO is required to give a period of not less than 7 days and not more than 30 days to the assessee to file the response (ii) Assessee files the response within the time specified or the time expired where the assessee has not filed any resply (iii) The AO passes an order under section 148A(d) within 30 days from the end of the month in which the reply is received by the AO or the time given in the notice under section 148A(b) expires (iv) The AO issues notice under section 148 initiating the reassessment proceedings. 8. In the cases where section 148 notices issued under the old regime between 01.04.2021 to 30.06.2021, by virtue of the decision of the Hon'ble Supreme Court in the case of Ashish Agarwal (supra) were deemed to be issued under section 148A of the Act. For such notices deemed as issued under 148A for AY 2013-14 an....
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....receiving the response of the assessee. In this instance, if the assessee submits the response on 18 June 2022, the assessing officer will have sixty-one days from 18 June 2022 to issue a reassessment notice under section 148 of the new regime. Thus, in this illustration, the time limit for issuance of a notice under section 148 of the new regime will end on 18 August 2022. 113. In Ashish Agarwal (supra), this Court allowed the assesses to avail all the defences, including the defence of expiry of the time limit specified under section 149(1). In the instant appeals, the reassessment notices pertain to the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017- 2018. To assume jurisdiction to issue notices under section 148 with respect to the relevant assessment years, an assessing officer has to: (i) issue the notices within the period prescribed under section 149(1) of the new regime read with TOLA; and (ii) obtain the previous approval of the authority specified under section 151. A notice issued without complying with the preconditions is invalid as it affects the jurisdiction of the assessing officer. Therefore, the reassessment notices issued under se....
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....available to the Assessing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation under this sub-section shall be deemed to be extended accordingly. 10. A combined reading of the observations of the Hon'ble Supreme Court and the provisions of section 149, it is clear that the surviving time limit available to the AO for issue of notice under section 148 is number of days from the date of the issuance of the deemed notices 148A(a) till 30.06.2021 besides the period granted to the assesses to reply to the show cause notices in terms of the third proviso to Section 149. Further as per the fourth proviso if the surviving time limit is less that 7 days then, such remaining period shall be extended to seven days for the purpose of period limitation. 11. In the background of the above legal position we will now examine the facts in assessee's case. In assessee's case the original notice under section 148 was issued on 30.06.2021 and said notice was deemed to be issued under section 148A by virtue of the decision of the Hon'ble Supreme Court i....