2026 (8) TMI 758

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....sessee has raised the following grounds of appeal: "1. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming validity of reassessment proceedings under section 148 which is bad in law and required to be quashed. 2. On the facts and circumstances of the case and law, the Ld. CIT(A) failed to considered that notice under section 148 of Income Tax Act. 1961 was issued without mentioning the DIN Number on notice itself which is violation of CBDT Circular No. 19 of 2019 dated 14.08.2019. 3. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming the action of Ld. AO in issuing notice under section 148 of Income Tax Act. 1961 without obtaining approval o....

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....andan Diamonds Pvt Ltd and Siddhant Gems P Ltd. The assessee was one of the beneficiaries of amount of Rs. 1,99,50,000/- transferred from Sanmati Diamonds Pvt Ltd. Based on this information, the AO issued notice u/s 148 of the Income Tax Act, 1961 (in short "the Act") on 25.07.2022 after taking prior approval of competent authority. Thereafter, the AO issued show cause notices u/s 142(1) of the Act calling for the explanation of the assessee. The assessee replied, however, the AO did not find the explanation of the assessee tenable and made addition of Rs. 1,99,50,000/- to be taxed u/s 37(1) of the Act and completed the assessment. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly ....

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....hich has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year. 31. On a conjoint reading of the provisions newly introduced, the new scheme of reassessment is seen to have incorporated the procedure set out in the judgement of the Supreme Court in GKN Driveshafts (India) Ltd., vs. Income Tax Officer (259 ITR 19), statutorily. The statute now requires the officer to supply the reasons upon which the reassessment is proposed, solicit objections for the proposed reopening and pass an order upon such objections, in terms of Section 148A(d). If the aforesaid order is adverse to the assessee, it will be followed/accompanied by a notice under section 148." 6. The Ld. AR further submitted that th....

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....o submitted that the ledger account of M/s. Minisha Exim Pvt. Ltd. and its confirmation along with ITR of M/s. Sanmati Gems Pvt. Ltd. for A.Y. 2011-12 was also filed during the assessment proceedings as well as before the CIT(A). The retraction affidavit of Mr. Deepak Jain as well as purchase invoices, ITR acknowledgment of M/s. Sanmati Gems Pvt. Ltd., ledger account confirmation of M/s. Sanmati Gems Pvt. Ltd. categorically mentions that the assessee has made genuine purchase and has all the details. 9. We have heard both the parties and perused all the relevant materials available on record. It is pertinent to note that as regards ground No.1 to 3 on the legal validity of invocation of section 157 of the Act, it is categorically mention....