TaxTMI 
TaxTMI 
2025 (3) TMI 1854
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....justice and fair play. 2. On the facts and in the circumstances of the case, the reopening for the A.Y. 2013-14 by issue of notice u/s. 148 of the Act dated 30.03.2021 is bad in law as it is issued beyond the stipulated period of 6 years from the end of the relevant assessment year. Hence, the assessment completed u/s 147 of the Act on the basis of an invalid notice u/s 148 of the Act needs to be treated as null and void ab initio. 3. On the facts and in the circumstances of the case, the learned A.O. did not have any tangible material on record to prove that there was income escaping assessment for the A.Y. 2013-14 except for AIR information. Further, the learned A.O. did not make any independent enquiry before issuing notice u/s. 148 for the A.Y. 2013-14 and hence, the assessment made u/s. 147 r.w.s. 144B is bad in law. The act of the learned CIT (Appeals) in confirming the assessment order is bad in law and the additions made/confirmed need to be deleted. 4. On the facts and in the circumstances of the case, the learned CIT (Appeals). NFAC, Delhi erred by confirming the act of the learned A.O. in reopening the assessment proceedings without passing a s....
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....ed by the learned A.O., u/s 147 rws 144B of the Act for the AY 2013-14 as the learned A.O. did not even make an attempt to call for information about the transactions from the concerned seed companies and reconcile the same with the details submitted by the appellant. 10. On the facts and in the circumstances of the case, the learned CIT (Appeals), NFAC, Delhi erred by upholding the order passed by the learned A.O. u/s 147 rws 144B of the Act for the AY 2013-14 as the additions were made on assumptions and in an arbitrary manner w.r.t. the addition of Rs. 1,89,12,408/- as additional business income by estimating the net profit at 8 percent of Rs. 23,64,05,099/- (total amount of credits of Rs. 27,87,56,395/- in the bank accounts as reduced by the turnover of Rs. 4,23,51,296/- as admitted in the return of income filed for AY 2013-14). 11. On the facts and in the circumstances of the case, the learned CIT (Appeals), NFAC, Delhi erred by upholding the order passed by the learned A.O. u/s 147 rws 144B of the Act for the AY 2013-14 as it amounts to taxing the credits in the bank accounts twice, once by treating the entire cash credited in the bank account u/s 69A & yet ....
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....ted the total income at Rs. 6,11,63,704/- and completed the assessment u/s.147 r.w.s. 144B of the Act on 30.03.2022. 4. Aggrieved with the order of Ld. AO, the assessee filed appeal before the Ld. CIT(A). However, before the Ld. CIT(A) also the assessee could not respond to the notice issued by the Ld. CIT(A). Consequently, the Ld. CIT(A) dismissed the appeal of the assessee. 5. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before us. The Learned Authorised Representative ("Ld. AR") submitted that, the assessee had filed ROI by showing a net profit of Rs. 10,51,808/- on business turn over of Rs. 1,48,53,281/-. However, the Ld. AO calculated the net profit @ 8% on a turn over of Rs. 23,64,05,099/- i.e. amount of total credit in the bank account excluding amount of cash deposit. The Ld. AR invited our attention to reconciliation statement placed at page no.1 of paper book no. 3 and submitted that, the assessee had filed a reconciliation statement before the Ld. AO explaining the total credit of Rs. 27,87,56,395/- in the bank account. The main components of bank credits, as explained in the said reconciliation statement was that, the credits were found in the....
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....ount of the assessee. The assessee has also explained the details of other credits also. However, we found from the order of Ld. AO that, the Ld. AO neither considered the reconciliation statement nor called any explanation from the assessee and treated the total credit in the bank account (reducing cash deposit) as turnover of the assessee and calculated the income of the assessee @ 8% on the said turnover. Further, the nature of transaction from the companies has also not been examined by the Ld. AO. We have also gone through the bank statements placed at page nos.21 & 5 of paper book no. 2 and found that two deposits of Rs. 50 lakhs each in Axis Bank A/c. No. 910030045671444 was transferred from another bank account of the assessee with Axis Bank bearing A/c. No. 910010032731027 on 16.04.2012. We have also gone through the bank statements placed at page nos.6 & 25 of the paper book no. 2 and found that another two deposits of Rs. 50 lakhs each in Axis Bank A/c. No. 910030045671444 was transferred from another bank account of the assessee with Axis Bank bearing A/c. No. 910010032731027 on 23.04.2012 and 25.04.2012 respectively. Hence, it cannot be denied that there are internal b....