2026 (4) TMI 1921

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....f the Act is bad in law and hence, the reopening of assessment as well as the assessment order are invalid and may be quashed. 3.1. The facts in brief are that the case of the assessee was reopened u/s 147 of the Act after the ld. AO received information from DDIT Investigation unit 4(1), Kolkata vide letter dated 22.03.2016, wherein it was stated that the assessee is a beneficiary of huge cash deposited to the tune of Rs.2,72,95,000/-during F.Y. 2008-09, relevant to A.Y. 2009-10. Thereafter, the ld. AO on perusal of detail received from DDIT(Inv.) Unit 4(1), Kolkata noted that the amount of dubious transactions were Rs.3,12,85,000/-instead of 2,72,95,000/-. Accordingly, notice u/s 148 of the Act was issued on 29.03.2016, which was complied with by the assessee by filing the return of income on 05.09.2016, declaring total income of Rs.34,072/-. Thereafter, the assessee furnished various details/information as called for by the ld. AO. Finally, the ld. AO noted that the assessee received Rs.3,12,00,000/- from various parties in cash which was deposited into the bank account of the assessee and treated the same as unexplained cash credit u/s 68 of the Act. The same was added to th....

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.... conveyed to the AO on 31.03.2016 though the same was accorded by ld. PCIT on 29.03.2016. In our opinion, the reopening of assessment made by the ld. AO is bad in law and cannot be sustained. The case of the assessee find support from the decision of the co-ordinate bench in case of Paras Plaza Pvt. Ltd. (supra), wherein the co-ordinate Bench has held as under:- "04. After hearing the rival contentions and perusing the materials available on record, we find that in this case the notice u/s 148 of the Act was issued by the ld. AO on 26.03.2019, whereas the approval was communicated to the ld. AO, the ACIT, Circle10(2), Kolkata by ITO Ward 10(4), Kolkata for PCIT-4, Kolkata vide letter dated 28.03.2019. For the sake of ready reference, the same is extracted below: - "No. Pr. CIT-4/Kol/148/2018-19/13414 Dated 28.03.2019 To The DCIT, Circle-10(2), Kolkata Sir, Sub: Approval for reopening of proceedings u/s. 147 of the I.T. Act, 1961 in the case of M/s. Paras Plaza Pvt. Limited.; PAN AAECP8301N for the A.Y. 2012-13- matter regarding. Please refer to the above I am directed to inform you th....

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....ings are not meant for outside exposure. Notings in the file culminate into an executable order, affecting the rights of the parties, only when it reaches the final decision-making authority in the department; gets his approval and the final order is communicated to the person concerned. 13. In Bachhittar Singh Vs. The State of Punjab [1962] Supp 3 SCR 713, a Constitution Bench of this Court had the occasion to consider the effect of an order passed by a Minister on a file, which order was not communicated to the person concerned. Referring to the Article 166(1) of the Constitution, the Court held that order of the Minister could not amount to an order by the State Government unless it was expressed in the name of the Rajpramukh, as required by the said Article and was then communicated to the party concerned. The court observed that business of State is a complicated one and has necessarily to be conducted through the agency of a large number of officials and authorities. Before an action is taken by the authority concerned in the name of the Rajpramukh, which formality is a constitutional necessity, nothing done would amount to an order creating rights or casting liabili....

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....m of your income for the said assessment year. 3. This notice is being issued after obtaining the necessary satisfaction of the commissioner of Income Tax Direct Taxes. Seal. the Central Board of Qualely (Signature of Officer) Name : सोमनाथ अङ्गी SOMNATH AUDDY Designation froome Yax Clfont, Ward-913), Koit's je yof Code No: \VDC-W-108(3) Note : 1. If you feel any difficulty in the matter of filing in the return form or desire clarification on any other matter pertaining to your Income Tax liability, you may contact the : Public Relation Officer Income - Tax Officer, Ward/Circle 2. The prescribed form in the case of companies is Form No. 1. In the case of assessee other than companies the prescribed form is ordinarily form No. 2. However, if the assessee has no income to declare other than what is chargeable under one or more of the heads; "Salaries" and "Income from Other Sources", confined shares from Firms, Association of Persons, or Bodies of Individual or is chargeable under the head 'Income from house property', or/and "Capital Gains', he may furnish return in form ....

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.... 2. I am directed to convey the approval of Pr. C.I.T., Kol-3, for issuing of notice u/s 148 of the I.T. Act, 1961, in the above captioned cases. 3. Copies of ITNS-10, containing the satisfaction of Pr. CIT, Kol-3, are enclosed herewith, for your perusal and necessary action there upon. भवदीय/ Yours faithfully संलग्नक/Encl. : यथोपरि / as stated above 148 folders of the captioned cases गायनी (Bhaswati Chatterjee lyer) उप आयकर आयुक्त, मुख्यालय३-, कोल /DCIT, HQ-3, KOL For प्रधान आयकर आयुक्त, कोल-३,कोलकता/ Pr.CIT. KOL-3, KOLKATA NO: PCIT/Kol-3/DCIT, Hqrs-3/Kol/ u/s. 148/ 15-16/ दिनांक-31.03.2016 Copy to :- JCIT, R-9, Kol for kind information and necessary action. उप आयकर आयुक्त, ....