TaxTMI 
TaxTMI 
2025 (3) TMI 1696
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....he assessee is a non-resident. The assessee did not file return of income for the Assessment Year 2011-12 despite having taxable income and investments in mutual funds. The AO had information that the assessee had advanced cash loans during the year, the source of which was not explained. The assessee's assessment for the Assessment Year 2011-12 was reopened with the approval of the CIT and notice under section 148 of the Act was issued on 31.03.2018. After issuance of notice, assessee filed return of income on 25.04.2018 declaring total income of Rs. 4,06,180/- and paid taxes thereon. Thereafter, other statutory notice were issued to the assessee. Assessee sought copy of reasons recorded which was provided to the assessee and the same ....
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....ssessee filed appeal before the Tribunal. 5. The learned Counsel reiterated the submissions made before the ld.CIT(A) and he strongly contested that the proceedings ought to have been initiated under section 153C of the Act and not under section 147 of the Act because the reason for initiation of assessment proceedings is based on material found and seized under section 132 of the Act and the said material has a bearing on the income of the assessee. The proceedings initiated under section 147 of the Act is therefore without jurisdiction and hence liable to be held as invalid assessment. In support of his arguments, he relied on the following judgments : (i) ITO vs. Vikram Sujitkumar Bhatia, reported in 453 ITR 417 (SC) ....
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....17 under section 131(1A) of the Act. 7.1 Considering the rival submissions, materials available on record and Order of the lower authorities, we notice that it is an undisputed fact that the reassessment proceedings were initiated under section 147 of the Act based on documents found and seized in search proceedings under section 132 of the Act which is clear as per the copy of the reasons recorded and communicated to the assessee and it is also clear from the Assessment Order itself that addition made is based on material found and seized under section 132 of the Act. It is also a fact that search under section 132 of the Act being conducted in September, 2017 and there was sufficient time to initiate proceedings under section 153C of t....
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.... right provision of law is also required to be applied in the instant case. Instead the provision laid down under Section 148 ITA Nos. 771 & 772/Bang/2017 (M/s. Ickon Projects vs. ITO) of the Act was followed by the Ld. AO in reopening assessment against the assessee. Such wrong initiation of proceeding by issuing notice under Section 148 of the Act culminating into the order of addition under Section 147 of the Act, is, therefore, found to be without any jurisdiction and hence, the same is liable to be set aside. We, therefore, set aside the entire proceeding." 8. The case laws relied on by the learned DR in the case of PCIT-7 Vs. Naveen Kumar Gupta reported in 168 taxmann.com 574 (Delhi) is not applicable to the facts of the present ca....
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....ivastav for A.Y.2011-12 as stated as below :- :selected: . During the course of statement recorded u/s 131(1A) of the IT :selected: Act,Smt.Mamta Ajila has stated that she has lent a sum of Rs. I crore during February 2014 to one Mr.V.G.Siddhartha in cash. Of which it is said that a sum of Rs.50 Lakhs was the gift from her father and another sum of Ra.10 lakhs was out of her savings. Balance sum of Rs.40 Inkhs was lent by her sister. Smt. Jasmin Shah Srivastava on 7 February 2011 who was a non resident during the financial year relevant to the asst year 2011-12. It is further stated that this entire sum of Rs.1 crore was paid to Mr.V.G.Siddhartha on an interest @ 14% p.a. As per the information received from DDIT(Inv),Unit-3[3] Bangalore....