9911796707
TMI Blog1986 (4) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... r: "The original assessment for this assessment was completed on a total income of Rs. (sic) vide order dt.24th March, 1975which included business income is Rs. 1,10,74,303. Subsequently, notice under s. 148 was issued with the approval of CIT Delhi (Central). New Delhi and was served on the assessee on 17th Dec., 1979 in response to which return declaring an income of Rs. 94,88,677 was filed on 30th April, 1979 Vide its letter dt.25th April, 1979and subsequently, vide letter dt.23rd Feb., 1983the assessee has challenged the reopening of the assessment under s. 147(a) of the IT Act on the ground that no income has escaped assessment. The objection raised by the assessee for reopening of the assessment under s. 147(a) of the IT Act is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, did not discuss the grounds of the assessee taken about merits of the case. He also observed that the re-assessment was an attempt merely in the nature of reappraisal and change of opinion on the same issue which is neither permissible under s. 147(a) nor under s. 147(b). Yet further he observed that although similar action or re-opening of the original assessment was upheld in the case of the assessee for the asst. yr. 1971-72, there were distinguishing features for the assessment year under appeal which calls for quite independent consideration. Concludingly he held that for the asst. yr. 1971-72 the Tribunal had not upheld the finding regarding non-genuineness of the payments to various parties including M/s. Impex Commercial Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... generally prepared by a subordinate or even by the very same officer as an aide memories or to help the memory or enable a superior officer to examine the same and pass his orders thereon. A note , even when the same is prepared by the very same officer and even placing the most charitable construction on the same, cannot be elevated to or treated as the ITO recording his reason under s. 148, which is a statutory requirement." And according in view of this rationale the above noting of the ITO cannot be said much less, can be treated as reasons recorded for issuance of notice under s. 148 of the Act. The reopening of the assessment, a such, has to be held as illegal and without jurisdiction, since, it does not conform to the requiremen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts are debited in the account." The assessee placed the following information in reply to the above: "COPY APEEC,HYDERABAD500013. Details of purchases of stores from Impex Commercial Corporation, New Delhi, in 1970-71. Order No. Date Bill No. Date Material Qty. Invoice Value 9845/HM 12-7-1971 1121 5-8-1971 S. E. Copper 3001 kgs. 1,22,987,68 9168/HM 5-3-1971 1094 16-3-1971 " 3000 kgs. 1,39,000,00 9521/HM 5-5-1971 1098 15-5-1971 " 3000 kgs. 1,30,638,00 9845/HM 12-7-1971 1127 30-8-1971 " 3109 kgs. 1,27,448,81 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent order dt.23rd March, 1983it is observed that "it is a fact that the ITO has verified the entry of the goods allegedly purchased from M/s Impex Commercial Corporation in the assessee s stock register etc. However, that also does not entitle the assessee to debit the goods account with a fictitious price, if it is proved that the so-called seller never existed. In present case, it has been found after extensive enquiries by the ITO that the so-called Impex Commercial Corporation was not a genuine concern. It, therefore, follows that it could not have sold any goods to the assessee and charged any price therefor from it. If that be so, then debit of the purchase price rendered when totally false." 11. On exactly the same facts, for the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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