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TMI Blog2019 (10) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... s in brief are that AIR information was received about the assessee that he has deposited a cash amounting to Rs. 13,26,000/- during the FY 2007-08 in his savings account. The assessee did not file his return of income. Verification letters dated 26.2.2015 and 12.3.2015 were sent to the asessee but the assessee did not submit any reply. Also the assesseehas not filed his Income Tax Return for the relevant assessment year. Subsequently, after recording the reasons under section 147 of the Income Tax Act, 1961 (in short "Act") due approval of the Addl. CIT, Range- 65, New Delhi was obtained. The notice u/s. 148 of the Act dated 30.3.2015 and subsequent notices u/s. 142(1) of the Act were served upon the assessee. In response to the notices the assessee himself attended the assessment proceedings time to time as per order sheet entries. During the course of proceedings it was found that the assessee has been an employee of Delhi Police during the FY 2007-08 and has been drawing the salary therefrom. During the assessment proceedings, the assessee filed his return of income in response to notice u/s. 148 of the Act on 19.2.2016 declaring his total taxable income of Rs. 1,01,510/-. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s impugned order dated 28.03.2019 has dismissed the appeal of the assessee. Aggrieved with the appellate order, assessee is in appeal before the Tribunal. 3. Ld. Counsel for the assessee only argued the ground no. 2 which is legal in nature and has filed the Paper Book containing pages 1 to 41 in which he has attached the copy of AIR information; copy of reasons recorded; copy of approval performa u/s. 151; letter dated 26.2.2015 isued by AO; letter dated 12.3.2015 issued by AO; cash flow statement; confirmation from Rama Devi; bank statement of Ram Devi; copy of PAN card of Rama Devi; confirmation from Shyam Sunder; bank statement of Shyam Sunder; copy of PAN card of Shyam Sunder; confirmation from Virender Kumar; confirmation from Eshwar Dutt; Confirmation from Dayanand Sharma; jewellery sale bill to assessee; jewellery sale bill to Rohtash (2 in no's); jewellery sale bill to Kumud; sub. To CIT dated 18.8.17; RR dated 27.10.17; Sub. To CIT(A) dated 7.12.17 (Rejoinder to RR) and Sub. To CIT(A) dated 15.2.2018 and especially the page no. 2-3 of the Paper Book which is a copy of performa for recording the reasons for initiating proceedings u/s. 148 and for obtaining approval of Add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessment reopened validly. 4. ACIT Vs Rajesh Jhaveri Stock Brokers (P.) Ltd (2007) 161 Taxman 316 (SC)/r20071 291 ITR 500 (SC)/[2007] 210 CTR 30 (SC) So long as the conditions of section 147 are fulfilled, the Assessing Officer is free to initiate proceedings under section 147 and failure to take steps under section 143(3) will not render the Assessing Officer powerless to initiate reassessment proceedings, even when intimation under section 143(1) has been issued ADANI EXPORTS v. DCIT[1999] 240 ITR 224 (Guj) distinguished. 5. Devi Electronics Pvt Ltd Vs ITO Bombay High Court 2017- TIQL-92-HC-MUM- II The likelihood of a different view when materials exist of forming a reasonable belief of escaped income, will not debar the AO from exercising his jurisdiction to assess the assessee on reopening notice. 6. Pranawa Leafin (P.) Ltd. Vs DCIT Bombay High Court T20131 33 taxmann.com 454 (Bombay)/r20131 215 Taxman 109 (Bombay)(MAG.) Where there was failure on part of assessee to make true and complete disclosure in respect of share transactions entered into by it, in view of proviso to section 147, Assessing Officer was justified in initiating reassessment proceedings even a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation was justified. 14. Rakesh Gupta Vs CIT P&H High Court f20181 93 taxmann.com 271 (Punjab & Haryana) Where Assessing Officer received information from Principle Director of Income Tax (Investigation) that assessee had received bogus loss from his broker by client code modification, reassessment on basis of said information was justified. 15. Abhishek Jain Vs ITO Delhi High Court (2018) 94 taxmann.com 355 (Delhi), 2018-TIQL-1059-HC-DEL-IT Date of Order 01.06.20181 In terms of section 124(3)(b) jurisdiction of an Assessing Officer cannot be called in question by an assessee after expiry of one month from date on which he was served with a notice for reopening assessment under section 148." 16. Home Finders Housing Ltd. Vs. ITO (2018) 94 taxmann.com 84 (SC) SLP dismissed against High Court's order that noncompliance of direction of Supreme Court in GKN Driveshafts (India) Ltd. Vs. ITO (2002) 125 Taxman 963 that on receipt of objection given by assessee to notice under section 148, Assessing Officer is bound to dispose objections by passing a speaking order, would not make reassessment order void ab initio. 17. Baldevbahi Bhikhabhai Patel vs. DCIT (Gujarat High Court) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remarks, it is not coming out as to which material; information; documents and which other aspects have been gone through and examined by the Addl. CIT, Range-65, New Delhi for reaching to the satisfaction for granting approval. Thereafter, the AO has mechanically issued notice u/s. 148 of the Act. Keeping in view of the facts and circumstances of the present case and the case laws applicable in the case of the assessee, I am of the considered view that the reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed. My aforesaid view is fortified by the following decisions:- A) United Electrical Company (P) Ltd. Vs. CIT & Ors. 258 ITR 317 (Del.) In this case, approval by the Addl. CIT u/s. 151 was given in the following terms:- "Yes, I am satisfied that it is a fit case for issue of notice u/s. 148 of the Income Tax Act." Analyzing, the above satisfaction/approval, it has been held that the CIT is required to apply his mind to the proposal put up to him for approval in the light to eh material relied upon by the AO. The said power cannot be exercised casually and in a routine manner. We are constrained to observe that in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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