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TMI Blog2016 (5) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... even a whisper of any allegation that there has been a failure on the part of the assessee to disclose fully and truly all material particulars necessary for assessment. - Decided in favour of assessee - WP(C) 2526/2015 - - - Dated:- 12-5-2016 - MR BADAR DURREZ AHMED MR SANJEEV SACHDEVA JJ. For the Petitioner: Mr Salil Aggarwal and Mr Prakash Kumar, Advocates. For the Respondents: Mr Rohit Madan and Mr Akash Vajpai, Advocate for the Income Ta x. JUDGMENT SANJEEV SACHDEVA, J 1. This writ petition pertains to the assessment year 2007-08 and seeks quashing of notice dated 27.03.2014 issued by respondent under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the said Act ) and the consequent proceedings thereto including the order dated 23.02.2015 dismissing the objections filed by the petitioner. 2. The main challenge raised in the writ petition is that the re-assessment proceedings have been initiated after a period of 4 (four) years from the end of the relevant assessment year and the pre-condition for such initiation that there was failure on the part of the assessee to fully and truly disclose all the material particulars nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the payment was made. In addition thereto, the acknowledgement of e-returns of each of the shareholders was also furnished. The following annexures were annexed to the response dated 07.08.2009:- Name of Shareholder Address PAN No. of Shares M/s Monisha Granit Ltd. 2A/65, Ground Floor, Ramesh Nagar, New Delhi-110 015 AABCM7083P 26700 M/s Monisha Impex Ltd. 2A/65, Ramesh Nagar, New Delhi-110 015 AAFCM0694J 66700 M/s Bhalotia Agro Industries Ltd. WZ-241/S, Ground Floor, Inderpuri, New Delhi AABCB0388G 60000 M/s Elbee Portfolio Ltd. WZ-134, Plot No. 170, Vishnu Garden, New Delhi-110018. AABCH0899D 50000 M/s First Hi-Fin Ltd. 73, Triloki Apartment, Plot No. 85, I.P. Extn. New Delhi-110 092 AAACF2099M 56700 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70000 M/s Shattarchi Finance Leasing Ltd. 726, Pocket IIIrd Sector-19, Dwarka, New Delhi-110045 AAFCS8159Q 15900 1000000 5. The confirmation letters issued by the shareholders are similar and one such letter is extracted herein below. The same reads as under: TO WHOM SO IT MAY CONCERN This is confirm that we have made investment in shares, the particulars of which are given hereunder, our own declared sources. Name of Company No. of Shares : Allied Strips Ltd. No. of Shares : 26700 Equity Shares of ₹ 10/- each At a premium of ₹ 20/- per share Amount invested in Rupees : 8,01,000/- Particulars of Remittance : Cheque /DD/Pay Order No. : 453976, 453977 Dated : 29/01/2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t proceedings will be invalid in case an issue or query is raised and answered by the assessee in original assessment proceedings but thereafter the Assessing Officer does not make any addition in the assessment order. In such situations it should be accepted that the issue was examined but the Assessing Officer did not find any ground or reason to make addition or reject the stand of the assessee. He forms an opinion. The re-assessment will be invalid because the Assessing Officer had formed an opinion in the original assessment, though he had not recorded his reasons. 9. On 27.03.2014, the impugned notice under Section 148 of the Act has been issued. The reasons supplied to the assessee for re-opening of the case dated 24.03.2014 record as under:- M/s Allied Strips Pvt. Ltd. (AABCA0609D) Assessment in this case was completed u/s 143(3) at an income of ₹ 46,42,540/- on 07.10.2009. An information has been received from the Dy. Director of Income Tax (Inv.), Unit-V(2), New Delhi that a search seizure operation was carried out in the case of Allied Strips Limited on 17.12.2013. It has been observed by the Investigation Wing that M/s Allied Strips Ltd. has taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t No. 170, Vishnu Garden, New Delhi-110018. 31.03.2007 56700 20 1701000 10 M/s U.P. Electricals Ltd. 2A/55, Ground Floor, Ramesh Nagar, New Delhi-110 015 31.03.2007 33400 20 1002000 10 M/s B. Fin-Lease Pvt. Ltd. 1/16 Ist Floor, Asaf Ali Road, New Delhi-110002 31.03.2007 43400 20 1302000 10 M/s Tashi Contractors (P) Ltd. Shop No. 20, Krishna Market, Bawana Road, Pooth Khurd, Delhi 31.03.2007 33400 20 1002000 10 M/s Akshay Sales Pvt. Ltd. 2A/65, Ground Floor, Ramesh Nagar, New Delhi-110 015 31.03.2007 16700 20 501000 10 M/s G.C. Technology (India) Pvt. Ltd. B-348, IIIrd Floor, Hari Nagar, New De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained unverified I therefore reason to believe that an income to the extent of ₹ 3,00,00,000/- has escaped assessment and to assessee the income mentioned above and to verify the genuineness/creditworthiness of the above investors. I propose to issue notice u/s 148 of the Income Tax Act, 1961 for the assessment year 2007-08. Therefore, I have reason to believe that THE ASSESSEE COMPANY M/s Allied Strips Limited has concealed the particulars of income to the extent of ₹ 3,00,00,000/- which has not been disclosed in its return of income for the assessment year 2007-08. In view of this, I am satisfied that it is a fit case for reopening u/s 148 as the case of the assessee is fully covered as per the provisions of the I.T. Act, 1961 Section 147. 10. It is clear from the above, that the present case is one of change of opinion. The questionnaire and particularly question B.1 specifically raise the issue with regard to share capital. It requires the petitioner to give a list, source, genuineness, identity of the share holders along with confirmation copies of the ledger account of the party including confirmation of the mode, date, address and acknowledgement of ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Haryana High Court in the case of Duli Chand Singhania [2004] 269 ITR 192 that, in the absence of an allegation in the reasons recorded that the escapement of income had occurred by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, any action taken by the Assessing Officer under section 147 beyond the four year period would be wholly without jurisdiction. Reiterating our view-point, we hold that the notice dated March 29, 2004, under section 148 based on the recorded reasons as supplied to the petitioner as well as the consequent order dated March 2, 2005, are without jurisdiction as no action under section 147 could be taken beyond the four year period in the circumstances narrated above. 15. In the present case also, there is not even a whisper of any allegation that there has been a failure on the part of the assessee to disclose fully and truly all material particulars necessary for assessment. 16. Thus the petition is liable to succeed. The writ petition is allowed and the impugned notice under Section 148 of the Act dated 27.03.2014 and all proceedings consequent thereto including the order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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