2010 (10) TMI 770

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..... ntant Member This appeal of the Revenue and cross-objection of the assessee were argued in a consolidated manner by the learned Departmental Representative and the learned counsel for the assessee. Therefore, we find it convenient to pass a consolidated order. 1-2. The assessee (sic-Revenue) has taken two grounds in the appeal, which read as under : "On the facts and in the circumstances of the case the learned CIT(A) has erred in (i) Deleting an addition of Rs. 2,00,000 made under section 68 of the Act unexplained credit by holding that AO cannot establish that the assessee has concealed any income nor could establish what type of accommodation received from M/s MKM Finance (P.) Ltd. when the assessee fails to substantiate any .....

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..... absence of consideration of the record of the assessee, the AO at Delhi could not have come to the conclusion that any income escaped assessment and, (3) the approval was mechanically granted by the Addl. CIT. 2.1 The facts of the case are that the return of income was filed on 31st Aug., 2001. This return was processed on 28th Dec., 2001. Thereafter, the ITO, Ward-25(2), New Delhi, issued a notice under section 148 dt. 27th March, 2008. In the course of enquiry with the assessee, it was found that the jurisdiction over the case did not lie with that ITO but with ITO, Ward-3, Sriganganagar, which was later on transferred to the ITO, Suratgarh. The ITO at Delhi issued notices under section 143(2) and 142(1) and thereafter the file was tran .....

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..... ere carried out. Therefore, the Delhi ITO was under bona fide belief that the assessee is assessable at Delhi. Accordingly, reasons were recorded by him and the notice was served by him on the assessee at his Delhi address. As soon as he came to know that the assessee is regularly assessed by ITO, Suratgarh, requisite orders were obtained from the CIT and the record was transferred to the ITO, Suratgarh. The jurisdictional ITO considered the case, heard the assessee and passed the assessment order. It was argued that the reasons were validly recorded by the ITO at Delhi who also validly issued notice under section 148. If there is any defect in this action, the same is saved by the provision contained in section 292B. 3. We have considere .....

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