TaxTMI 
TaxTMI 
2026 (6) TMI 1115
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....sted before this Hon'ble Bench for hearing on 17th December, 2025. In this regard, it is stated that the appellant has filed the present appeal aggrieved by the order dated 16.09.2025 of the CIT (A), NFAC, Delhi for the A.Y. 2012-13, by virtue of which the assessment order dated 31.12.2019 passed u/s. 147 r.ws. 143(3) by the Ld. AO was confirmed. 2. To briefly recapitulate the facts germane for the issue under consideration, it is stated that the return filed earlier by the assessee was subject to scrutiny and an assessment order dated 11 Feb, 2015 was passed by the then AO u/s. 143(3) of the Income Tax Act. Thereafter, in this case allegedly some information from DDIT(Inv.) was received that the transaction entered by the assessee with two entities i.e. M/s Goodwill Enterprises and M/s Shree Shyam Overseas are bogus. The assessee duly replied to it has entered 'sale' transaction with these entities and the amount is duly included under the figure of 'sales". Dehors this fact, the Ld. AO made an addition of Rs. 1,31,52,942/-while passing the reassessment order. 3. The assessee challenged the initiation of the reassessment proceedings as well as on ....
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....ction 254 only to decide the grounds which arise from the order of the Commissioner (Appeals). Both the assessee as well as the Department have a right to file an appeal/cross-objections before the Tribunal. We fail to see why the Tribunal should be prevented from considering questions of law arising in assessment proceedings although not raised earlier". [Emphasis Supplied] 6. In view of the aforesaid legal position, it is submitted that since in the present case, the additional ground raised involves a purely legal issue and facts in relation to the same are already available on record, the appellant should not be precluded from raising the ground at this stage 7. In view of the above, the submission of the Appellant is that the admission of the additional ground is very important for the facts of the case and therefore the same needs to be admitted in the interest of justice. It is humbly prayed accordingly. 3. Since, the jurisdictional issue has been raised, we have decided to proceed with the same at the very threshold of the matter. 4. In this particular case, the original assessment was passed under section 143(3) of the Act on 11.02.2015 upo....
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.... given below: Name PAN Debits Credits Mukesh Agencies CKHPS0929K Rs.40,59,963/- Rs.2,10,000/- 5. In view of the facts mentioned in para 3 & 4, the credit of Rs. 59,80,900/- in bank account of the assessee Sh. Kuljeet Singh needs to be verified. Therefore, I have reasons to believe that assessee's income of Rs. 59,80,900/- chargeable to tax has escaped assessment. 5. In view of the information as above, Explanation 2(b) to section 147 is applicable in the case which lays down that the following shall also be deemed to be case where income chargeable to tax has escaped assessment, "where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance, or relief in the return. 6. In view of the above fact, I have the reasons to believe that a sum of Rs. 59,80,900/- on account of unexplained credit during the F.Y. 2011-12 relevant to AY 2012-13 chargeable to tax has escaped assessment-Since, four years have elapsed but not more than six years have elapsed from the end of t....
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....ssed the total income of the assessee at Rs. 4,50,750/-while making certain minor additions. Re: Reopening of the case by applying incorrect explanation to section 147 After passing of the original assessment order, in this case, the reassessment proceedings were initiated in the case of the appellant. The reason for the same was that some alleged information was received that two entities namely "M/s Goodwill Enterprises" and "M/s Shree Shyam Overseas" has not filed the income tax return for the A.Y. 2012-13. It was observed that there are some debits and credits in the bank account of the said entities. In this regard, it is pertinent to state that while recording the reasons for reopening the Ld. Assessing Officer has mentioned that the income tax return filed by the assessee was not subjected to scrutiny proceedings and has hence applied explanation 2(b) of section 147. The Ld. AO has thus clearly ignored that in this case, scrutiny assessment has been already conducted under section 143(3) of the Income Tax Act, and hence, the reasons are recorded without application of mind. In the reasons recorded the Ld. AO has reproduced the explanation 2(b) whic....
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....ully genuine and authentic transaction pertaining to sale of tires, tubes and flabs with the said firm for the period under consideration. To substantiate the said transaction, the Appellant has duly stated and submitted that M/s Shree Shyam Overseas is duly registered with the VAT Dept. in Himachal Pradesh having TIN No.02040400522. The VAT registration of the said entity was duly provided. Based on this, the Appellant submitted that the said entity i.e., M/s Shree Shyam Overseas is also dealing in tires and tubes and hence it is not a case that the sales has been made to unrelated/unconnected person which is not engaged in the business of tires and tubes. The Appellant further submitted that the sale has been made on the strength of statutory form-C, which has been issued by the VAT Dept. to M/s Shree Shyam Overseas. The Appellant duly enclosed the other necessary details like copy of ledger account in its books of M/s Shree Shyam Overseas, copy of invoices and copy of bank account, substantiating that the sale consideration has been received through banking channels. (Kindly refer to pаgе nо. 105-115 of the paper-book). Observation in the reassessment ....
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....o adverse conclusion against the appellant; g. The figures of sales cannot be doubted, when the books of accounts are not rejected The CIT (A) has not considered the submissions of the appellant and has chosen to confirm the assessment order. The order of the CIT (A) is a complete non-speaking order. At this juncture, it shall be relevant to reproduce the exact finding of the CIT(A). The entire finding of the Ld. CIT (A) same is as under: "The appellant is into business from long time and he is subjected to income tax audit and VAT audit. Therefore, sales & purchase bills for all the years must be in the custody of the appellant. It is clear that, if the purchase bills are not available with the appellant then corresponding sales to M/s Goodwill Enterprises and My Shree Shyam Overseas is also bogus. Therefore, I am of the opinion that, the action of AO treating the amount of Rs. 1,31,52.942/-received by the assessee from M/s Goodwill Enterprises and M/s Shree Shyam Oversens during the year under consideration, represents income of the assessee from undisclosed sources is justified. Therefore, grounds raised by the appellant are dismissed" ....