TaxTMI 
TaxTMI 
2026 (8) TMI 679
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...., which reads as follows: 6. The revenue had filed its response on 15.4.2026, which reads as follows: 7. As the response of the revenue was found to be not covering the issue, which has been raised by the assessee, the Revenue was directed to file a fresh report on 9.7.2026 vide order sheet, which reads as follows: 8. The revenue thereafter has filed its response on 29.7.2026, which reads as follows: 9. It was submitted by ld AR that in respect of reopening the assessee is relying upon the circular/instructions issued by CBDT dated 4.3.2021 as also the clarificatory circular/instructions issued on 12.3.2021, which read as under: F. No. 225/40/2021/ITA-II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, the 4th March, 2021 To, All Pr. Chief-Commissioners of Income-tax/ Chief-Commissioners of Income-Tax Madam/Sir. Subject: Instructions regarding selection of cases for issue of notice u/s 148 of the Income-tax Act, 1961 - regarding. 1. The Central Board of Direct Taxes (Board), in exercise of its powers u/s 119 of the Inco....
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....ssue of notice u/s 148 of the Income-tax Act, 1961- clarification to CBDT's letter dated 04.03.2021-reg 1. With reference to CBDT's Instruction dated 04.03.2021 on the above-mentioned subject, it has been decided to clarify as under: (a) The "potential cases' at Point no.1(iii) mean the cases flagged by the Directorate of Income-tax (Systems) subsequent to 04.03.2021. It is further clarified that the NMS cases flagged earlier will get subsumed in the new list. (b) With respect to criterion at Point no.1(v), it is clarified that "any other Income-tax Authority' includes the Assessing Officer (A.O.) herself/himself. Further, the information received as per Point no. I(v) shall not include information received from Directorate of Income-tax (Investigation), Central Charges and Directorate of Income-tax (Intelligence and Criminal Investigation) after 01.04.2019. (c) With respect to the condition at Point no. 1(v), that cases are to be considered as potential cases for issue of notice u/s 148 of the Act 'with the approval of CCIT concerned', it is clarified that the CCIT shall call for the list of the potential cases along with....
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.....1(iii) of the circular/instruction dated 4.3.2021 mean the cases flagged by the Directorate of Income tax (Systems) subsequent to 4.3.2021. The AR of the assessee also stated that the said circular also talks about the approval to be taken by the Chief Commissioner of Income Tax in parallel to the provisions of section 151 of the Act. However, there is no such approval on record. 12. It was a further submission that the information in the case of the assessee had been provided by the DDIT/ADIT(Inv), Dhanbad prior to 4.3.2021 and, therefore, notice issued u/s.148 of the Act on the basis of such information's issued in the case of the assessee for the assessment years 2014-15, 2015-16 and 2016-17 on 26 & 27.3.2021 were invalid and it violates the circular issued by CBDT dated 12.3.2021 and, therefore, is liable to be quashed. The AR drew our attention to Page 07 - 12 of the paper books which was the copy of the information sent by DDIT(Inv) Dhanbad to the AO vide letter dated 29.1.2021 which has been received in the office of the AO on 2.2.2021. The same reads as follows:- 13. In reply, ld Sr DR drew our attention to the "Insight verification portal" for all the three years, w....
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....d by the common man. The fact that various views get explained by various Hon'ble High Courts and matters reached the Hon'ble Supreme Court for consideration itself shows the intricacy and complexity of the tax laws. A plain reading of the tax laws would give one meaning but the reading of this law with the facts of each case can give a different interpretation. The Hon'ble Supreme Court in the case of NTPC, 229 ITR 383 (SC) has categorically held that an appellate Tribunal has jurisdiction to entertain an additional ground of law not raised earlier, provided the relevant facts are already on record and do not require fresh investigation. The circular/instructions issued by CBDT dated 4.3.2021 and further clarificatory circular/instruction issued on 12.3.2021 prima facie shows that the reopening is invalid. 18. A perusal of the reasons recorded for the purpose of reopening which have been extracted above, shows that in para 2 and 5 for the assessment year 2014-15, the alleged income which has escaped assessment is Rs. 1,41,89,843. However, the Insight portal alleges undisclosed income of Rs. 1,08,74,913/-. Notice u/s.148 of the Act for the assessment year 2014-15 admittedly is n....
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.... assessments also stands quashed. Hence, additional ground raised by the assessee stands allowed. The other grounds as raised by the assessee are not being adjudicated insofar as the additional ground has been allowed and assessments have been quashed. 21. In the result, appeals of the assessee stand allowed. Order dictated and pronounced in the open court on 31/07/2026. ============= Document 1 In the matter of Sri Pawan Kumar Khandelwal Giridıh Before. Hon'ble Income Tax Appellant Tribunal Ranchi Bench Ranchi ITA No. 59/Ran/2025 Assessment Year: 2014 - 15 Additional Legal Ground 1) For that the notice U/s 148 dated 26/03/2021 is void and bad in law show to the extent that the same in not in terms with the CBDT notification/ instructions dated 04/03/2021 read with 12/03/2021. As per the documents of record, the AO had received the information from Investigation Unit on 02/02/2021 and as such, notice being issued beyond 04/03/021 does not make the case fall under the category of potential cases as per the CBDT instructions which is binding on the revenue department. We humbly pray that the above grounds may kindly be admitted as fresh legal grou....
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.... evidence is required to be called for. We pray that the ground be kindly admitted for adjudication as a fresh legal ground being raised before your honour in the light of decision of Hon'ble Apex Court in case of NTPC VS CIT 229 ITR 383 (SC). Power Kamer Document 4 ITA 59/RAN/2025 (Assessment Year: 2014-15) In the case of PAWAN KUMAR KHANDELWAL vs. ITO Assessee represented by: Devesh Poddar, AR Department represented by: Ram Chandra Marndi, Sr. D.R. Bench: DB 2 06-Jan- 2026 (Tuesday) The assessee is to file written submission in respect of issue of reopening on or before 08/01/2026. Copy to be provided to the Ld. Sr. D.R. The revenue to file their response in writing by 05/03/2026 and the response filed by the revenue is to be provided to the Ld. A.R. also. Appeals are 'adjourned to 11/03/2026. Both parties are informed in the open court. & RATNESH NANDAN SAHAY ACCOUNTANT MEMBER 2 GEORGE MATHAN JUDICIAL MEMBER Recd. S.B. King 15/01/2 Document 5 In the matter of Sri Pawan Kumar Khandelwal Giridih Before, Hon'ble Income Tax Appellant Tribunal Ranchi Bench Ranchi ITA No. 59-61 /Ran/2025 Assessment Year: 2014 - 15 to 2016 -....
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....ated 29/01/2021 which was received by the AO in his office on 02/02/2021. The copy of the said information letter is attached herewith at Page 07 - 12 on top of which the Ld AO has put his signature (as even verified from the signature on the reasons recorded) and date of receipt as 02/02/2021. 7. That as such, it can be concluded that in case of the assessee for all the 3 impugned years, the AO has received information from the investigation unit on 02/02/2021 and that notice U/s 148 has been issued on 26/03/2021 & 27/03/2021. - 8. That as per the CBDT instructions dated 04/03/2021 read with 12/03/2021, the notices issued U/s 148 is bad in law to the extent that the same has been issued on basis of the information received/ flagged by the investigation unit on 02/02/2021 i.e. much before 04/03/2021. 9. That it is further settled law that the instructions and circulars issued by CBDT and binding upon the revenue authorities and support of the same, we rely upon the decision of Hon'ble Apex Court in the case of K.P. Varghese v. ITO [1981] 7 Taxman 13/131 ITR 597 (SC) wherein the Bench has held that circulars of Central Board of Direct Taxes are legally binding on the R....
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....mpugned AY's is bad in law and the assessment framed thereby is fit to be quashed. We shall be obliged for your kind consideration and necessary orders on the above. Filed by :- Poddar Dewish Padder Adv. Document 8 à¤à¤¾à¤°à¤¤ सरकार / Government of India कारà¥à¤¯à¤¾à¤²à¤¯, आयकर अधिकारी, वारà¥à¤¡, 3(4), गिरिडीह / Office of the Income Tax Officer, Ward-3(4), Giridih बी०बी०सी०, रोड, गिरिडीह / B. B. C. Road, Giridih ईमेल/Email. [email protected] F. No: ITO/ITAT/2026-27/33 To Dated: 15/04/2026 The Additional Commissioner of Income tax (Sr. DR), ITAT, Ranchi Sir, Sub: - Submission of factual report/written submission in respect of issue of reopening in the case of Pawan Kumar Khandelwal, PAN: ACLPK8491L, ITA No .- 59-61/RAN/2025 for AY-2014-15 to 2016-17 - reg. Kindly refer to the above. The Assessee, Shree Pawan Kumar Khan....
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....3(4) Giridin, hereby JAO after issuance of notice u/s 148. The copy of screenshot of the same is attached herewith as Annexure D, E and F. Therefore, there is no violation of instruction dated 04.03.2021 along with clarification instructions issued on 12/03/2021 and the initiation u/s 147 of Act and issue of notice u/s 148 is in accordance with the Act and as well as the instructions dated 04/03/2021 and 12/03/2021 of CBDT. This is submitted for kind perusal and necessary direction, if any. «Øود (Dhaneshwar Mahto) Assistant Commissioner of Income- tax (In- Situ) O/o income- tax Officer Ward- 3(4), Giridih. Copy to: The Joint Commissionler of Income-tax, Range-1, Dhanbad. (Dhaneshwar Mahto) Assistant Commissioner of income- tax (In- Situ) O/o Income- tax Officer Document 9 (Order sheet) IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI ITA No.59 TO 61/RAN/2025 (A.Y 2014-15 TO 2016-17) 09/07/2026: Information has been provided to the Assessing Officer by the DDIT on 29/01/2021. Notices under Section 148 have been issued on 26/03/2021 and 27/03/2021. Circular/Instruction issued by the CBDT dated 04/03/2021 read with the clarificatory Ci....
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....before the Hon'ble Tribunal. These two grounds challenge the validity of issue of notice u/s 148. It is worthy to mention here that the grounds of reopening u/s 147/148 had been shared with the assessee, as evident from the para-2 of the text of the assessment orders themselves. The assessee had not raised any objection whatsoever to the issue of the Notice. I The case went to the domain of the National Faceless Assessment Centre u/s 144B for completion of assessment. Before the Ld Faceless Assessing Officer too, in the course of assessment proceedings, no objection whatsoever to the issuance of notice was made. The assessment order was made u/s 143(3)/147/144B dated 30/03/2022 on the merits of information [grounds of reopening]. Aggrieved, he preferred appeal before the Ld CIT(A) u/s 249 with grounds of appeal that did not incorporate any ground to challenge the validity of the notice. It challenged the merit of additions made in the assessment order. In his order dated 28/09/2023 u/s 250, Ld CIT(A)/National Faceless Appeal Centre confirmed the assessment after hearing the assessee and examining the material on record. Further aggrieved, the assessee filed appeal ....
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.... clear whether the assessee challenges the issuance of notice and perusal of facts in the run-up to the issuance of the notice or oversees the action of the AOs even in the post issuance scenario which is absolutely directed for convenience of the future users - mainly the Faceless Assessing Officers - of Income Tax Business Applications or ITBA. Be that as it may, the underlying information was uploaded on 23/11/2021 on ITBA. Para-6 The Ld AO initiated the proceedings u/s 147 on the basis of a piece of credible information that came from the DDIT (Inv) Dhanbad to the effect that income is believed to have escaped assessment. Para-7 Nothing is accepted save and except what is on record. Para-8 Ld AR is wildly presuming that the information was available only by physical mode. The verification of Insight Portal shows that the information of Investigation Wing was uploaded by the DDIT(Inv) - on Saudipo Kker br DR 22/7/2026. Document 12 ITANO 59,60, 61/RAN/2025 the Insight portal - a portal with crucial piece of information managed and maintained by System Directorate for the internal use of departmental officers - on 07/03/2021. It is also important to ....
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....¤à¥à¤šà¥€ सरà¥à¤•à¥à¤²à¤° रोड, धनबाद-८२६००१/ LUBY CIRCULAR ROAD, DHANBAD-825 001 Phone No: 0326 - 2221147 | Fax No: 0326 - 2311576 E-mail: [email protected] F.No. DDIT (Inv/DHN/Sharing information/2020-21/ 481-4 Date: 29.01.2021 सेवा में, आयकर अधिकारी, वारà¥à¤¡-3(4)- गिरीडीह। Sub :- Sharing the information in the case of Sri Pawan Kumar Khandelwal, Giridih [PAN- ACLPK8491L ]- reg. Ref:PDIT(Inv)/PAT/STR/vol-1/2020-21/1601 dated 08.01.2021 Please refer to the above. 1. The detail of the assessee: - As per information wholesale business of the assessee is mentioned, however in Audit Report(3-CD) of the assessee Nature of Business and Profession is mentioned as Trading in Palmoline, Soya, Vansapati etc. 3. Analysis of ITR of the assessee ;- As per submission of the assessee and data available on'ITBA, assessee has filed his return of income regularly and derives income fr....
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.... SL. No. Assessment Year Amount Credited (In Rs.) 1 2014-15 14,42,73,857/- 2 2015-16 12,26,92,315/- 3 2016-17 2,11,08,868/- 4) Analysis of declared turnover and total credits in all Bank accounts: From the analysis of turnover declared by the assessce in above AYs and total credits as per the bank accounts of the assessee, it is obvious that there are substantive differences in all the three AYs as shown below: Assessm ent Year Gross Turnover declared by the assessee (In Rs.) Total amount credited in bank accounts (in Rs.) Differnce (In Rs.) 2014-15 13,00,84,014 14,42,73,857 1,41,89,843 2015-16 11,74,18,645 12,28,92,315 54,73,670 2016-17 1,44,45,050 2,11,08,868 66,63,818 Certified to be true Copy Hahn, DHANWSHWAR MAHTO Income Tax Officer JTO Ward-3 (4), Giridih Document 16 5) Vide this office DIN & Notice No. ITBA/INV/131/2020-21/1027742858(1) dated 18.08.2020, a clarification regarding difference between turnover and total credits for the above AYs and source of payment to Sundry Creditors in the AY 2014-15 to the tune of Rs.18,78,782/-, in the AY 2015-16 to the tune of Rs.36,27,473/- and in the AY 2016-17 to the tune of Rs.61,90,842/- has been requisitioned....
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....016-17. Because he has neither produced evidence regarding taxes paid nor provided how come closing cash-in' hand remained if all the receipts and last year's closing cash-in-hand was also deposited I the bank accounts. (11) It is pertinent to mention here that there is no sundry debtors outstanding in any above mentioned assessment years in the asset sides of the assessee in Balance Sheetsor other sources in his Balance Sheet (Audit Report) to explain the such excess receipt. (ii) Neither list of sundry creditors nor the details of repayment has been submitted by the assessee. Hence, it is apparent that genuineness of the sundry creditors Is doubtful. (Iv) The assessee has submitted that he has not taken the taxes paid by him Le. CST & VAT in his turnover disclosed. He couldn't produce evidence (challans) of payment of taxes which would have substantiated his claim that he has disclosed correct turnover in his ITRs. Remarks - (I) Assessee has claimed payment of CST amounting to Rs.38,78,661, VAT amounting to Rs. 26,25,539 and cash in hand to the tune of Rs. 43,70,713, but failed to provide any documentary/corroborative documents. Herice; the total of the....
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....e: 29.01.2021 · Copy for information to the: 1. Pr. Commissioner of Income Tax, Dhanbad 2. Addl. Director of Income Tax (Inv.), Ranchl. (आशीष कà¥à¤®à¤¾à¤°)/4&SHISH KUMAR) आयकर उप निदेशक, (अनà¥à¤µà¥‡à¤·à¤£)धनबाद Dy. Director of Income Tax (Inv.), Ähanbad Certified to be true Copy DHANWSHWAR MAHTO Income Tax Officer ITO Ward-3 (4), Giridih Document 19 Insight Personal Details PAN ACLPK8491L DoB/ Incorporation Name PAWAN KUMAR KHANDELWAL Address GIRIDIH State Jharkhand Pincode . Email - Mobile . Jurisdictional PCIT . Information Details Information EY Information Source Type Information Source Description Information Type Information Description Information Value 2013-14 Suspicious Transaction Report STR Others OTHER . Verification Details Nature of Verification Enquiry Verification Result Actic :able AY Result Type Result Description Result Value Remarks 2014-15 Undisclosed Income UNDISCLOSED INCOME 1,08,74,913 - Documents S.No. Document Type Document Description Remarks Docume....
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.... Parent ID . Updated On - Updated By Download ID 15480714072026 Date IP Address 14-07-2026 10.8.6.27 User Details ASHOK KUMAR,ITO WARD 3(4). raminuse! Document 22 WHERE NO REGULAR ASSESSMENT WAS MADE U/S. 143(3)/ 147 OF ACT Name of the Assessee: Pawan Kumar Khandelwal Prop. of M/s Khandelwal Trading Address of the Assessee: Giridih PAN of the Assessce: ACLPK8491L Assessment year: 2014-15 Details of the Assessing Officer having jurisdiction over the Assessee: Income Tax Officer, Ward-3(4), Giridih Reasons for reopening of the assessment in case of Pawan Kumar Khandelwal Prop. of M/s Khandelwan Trading, Giridih for A.Y. 2014-15 u/s 147 of the Act. 1. Brief detail of the Assessee: The Assessee, Shree Pawan Kumar Khandelwal Prop. of M/s Khandelwan Trading, Giridih is engaged in trading of Palm Oil, Soya, Vanaspati etc. Return of income was filed by the assessee voluntarily for the A.Y.2014-15 on 18.03.2015 declaring gross income of Rs.4,50,194/ -. 2. Brief details of information collected/ received by the AO: Information has been received from the Dy. Director of Income Tax (Inv.), Dhanbad. On perusal of the same, it is found that during F.Y.2013....
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....S 143(3)/ 147 OF ACT Name of the Assessee: Pawan Kumar Khandelwal Prop. of M/s Khandelwan Trading Address of the Assessee: Giridih PAN of the Assessee: ACLPK8491L Assessment year: 2015-16 Details of the Assessing Officer having jurisdiction over the Assessee: Income Tax Officer, Ward-3(4), Giridih Reasons for reopening of the assessment in case of Pawan Kumar Khandelwal Prop. of M/s Khandelwan Trading, Giridih for A. Y. 2015-16 u/s 147 of the Act. 1. Brief detail of the Assessee: The Assessee, Shree Pawan Kumar Khandelwal Prop. of M/s Khandelwan Trading, Giridih is engaged in trading of Palm Oil, Soya, Vanaspati etc. Return of income was filed by the assessee voluntarily for the A. Y.2015-16 on 18.03.2015 declaring gross income of Rs.5,15,007/ -. 2. Brief details of information collected/ received by the AO: Information has been received from the Dy. Director of Income Tax (Inv.), Dhanbad. On perusal of the same, it is found that during F.Y.2014- 15 relevant to the A. Y.2015-16, the total amount credited in all bank accounts of the assessee was Rs. 12,28,92,315/- and Gross turnover in the same period declared by the assessee was 11,74,18,645/- hence difference of to....
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....the Assessing Officer having jurisdiction over the Assessce: Income Tax Officer, Ward-3(4), Giridih Reasons for reopening of the assessment In case of Pawan Kumar Khandelwal Prop. of M/s Khandelwan Trading, Giridih for A.Y. 2016-17 u/s 147 of the Act. 6. Brief detail of the Assessce: The Assessee, Shree Pawan Kumar Khandelwal Prop. of M/s Khandelwan Trading, Giridih is engaged in trading of Palm Oil, Soya, Vanaspati etc. Return of income was filed by the assessee voluntarily for the A. Y.2016-17 on 18.03.2015 declaring gross income of Rs. 4,83,528/ -. 7. Brief details of information collected/ received by the AO: Information has been received from the Dy. Director of Income Tax (Inv.), Dhanbad. On perusal of the same, it is found that during F.Y.2015- 16 relevant to the A. Y.2016-17, the total amount credited in all bank accounts of the assessee was Rs. 2,11,08,868/- and Gross turnover in the same period declared by the assessee was Rs. 1,44,45,050/ -. Hence difference of total credit over gross turnover was Rs. 66,63,818/- 8. Analysis of information collected/received: On perusal of the information received, it is observed that during F.Y.2015-16 relevant to the A. Y.2....