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TMI Blog2015 (5) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... udit report under Section 44AB, copy of final accounts, balance sheet and relevant annexures were attached with the said return. Form No.10CCAC is also enclosed for the claim of deduction u/s. 80HHC of Rs. 45,47.052/. That the return of income was processed and further scrutinized under Section 143(3) of the Act and the assessment order came to be passed on 29.12.2006 determining the assessee income at Rs. 10,70,82,862/. 2.1. That the assessment for AY 200405 was reopened by the AO by issuing notice under Section 148 of the Act as according to the AO the income relevant to the said assessment in view of the finding that the assessee has claimed deduction for non genuine purchases of textile cloths from a fictitious concern amounting to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Tribunal has dismissed the said appeal confirming the order passed by the learned CIT(A). 2.4. That feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Tribunal, the revenue has preferred present Tax Appeal for the aforesaid proposed substantial question of law. 3.0. Shri Mehta, learned advocate for the appellant has vehemently submitted that learned Tribunal has materially erred in confirming the judgment and order passed by the learned CIT(A) deleting the addition made by the AO on account of income from undisclosed sources for non genuine claim of purchase expenses made from M/s. Ashok Synthetics, relying upon the decision of the Division Bench of this Court in the case of Income Tax Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions and relying upon the above decision, it is requested to allow the present appeal. 4.0. Heard Shri Sudhir Mehta, learned advocate for the appellant - revenue at length. We have perused the order passed under Section 143(3) r/w Section 147 of the Act as well as the order passed by the learned CIT and impugned judgment and order passed by the learned Tribunal. At the outset, it is required to be noted that the learned CIT(A) as well as learned Tribunal have concurrently held the reassessment illegal and invalid. The learned CIT(A) as such had elaborately dealt with and considered the legality and validity of the reassessment proceedings in detail. While holding the reopening of the assessment/ reassessment of the proceedings illeg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unattended to or escaped income. Contrary to this fact, the present Assessing Officer i.e. ACIT, Cir6 Surat has only processed in the matter on technical grounds ignoring the substance of the matter i.e. the corresponding sales made by the appellant and also the proof of payment through not only the banking channel but also the proof of destination of money. The AO has accepted that payments made by the appellant through account payee cheques have been duly reflected in the bank accounts of the supplier M/s. Ashok Synthetics. Only technical point which is referred to by AO is that further cheque issued by M/s. Ashok Synthetics to the various parties appearing in the annexure of the assessment order has been encashed by somebody else or ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the first ground of appeal is allowed." 4.1. The aforesaid has been confirmed by the learned Tribunal. Considering the aforesaid facts and circumstances of the case, when the original assessment was completed by CIT(A), Surat and within a period of three months from the original assessment order, notice under Section 148 was issued by another AO ACIT, Circle 6, Surat without having reassignment of the case or assuming legal jurisdiction over the case of AY 200405 and considering the fact that copy of reasons for reopening of the case has only been given to the assessee on 27.12.2007 and immediately thereafter on the very next day i.e. 28.12.2007 assessment came to be completed, learned CIT(A) had rightly held the assessment illeg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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