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TMI Blog2021 (2) TMI 602X X X X Extracts X X X X X X X X Extracts X X X X ..... ment is completed without complying with legal requirements of the provisions of section 147/148 of the Income Tax Act therefore such assessment is void ab initio and liable to be quashed. 2. The Ld. CIT(A) on the facts and circumstances of the case has erred in upholding the validity of impugned assessment order passed u/s 143(3)/147 of the Act after recording the fact that in the seized material from third party, the name of the appellant appears but the provision of sec I53C of the Act does not apply as the document seized don't belong to the appellant. The Ld C1T(A) has ignored the amendment to sec 153C(1) w.e.f 01.06.2015 where the seized documents from third party relating to the assessee rules out action u/s 147 of the Act. 3. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection of appellant, the material which is not discussed in the reason recorded. The AO is not entitled to support the reason recorded on the material which is not mention in the reason itself and in that case the reason suffers from either absence of relevant material at the time of recording of reason or reason not based on such material. 3.4. The action of the AO u/s 147/148 is not in accordance with the provisions of the Act as the action has been taken by the AO to verify information from investigation wing which is evident from the note of satisfaction given by Addl CIT/PrCIT u/s 151(1) of the Act. 4. The Ld. CIT(A) has erred both in law and in facts of the case in upholding the impugned reassessment proceedings ignoring the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d both in law and circumstances of the cases in upholding action of the assessing officer in making an addition of Rs. 1,75,000/- being 1.75% of the alleged accommodation entries of Rs. 1,00,00,000/- is arbitrary and without basis and therefore need be quashed. 3. Representatives of both the sides were heard at length, the case records carefully perused. We also had the benefit to go through the assessment records produced by the DR. 4. On perusal of the assessment records, we found that the reasons of reopening of assessment are materially different from the reasons extracted in the assessment order. In our considered view, when an assessment is reopened and reassessment order is framed, the entire quarrel revolves around the reasons rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the First Appellate Authority. Therefore, again in the interest of justice and fair play we restore this issue to the files of the AO. The AO is directed to examine and verify all the documentary evidences furnished by the assessee and decide the issue afresh after giving reasonable and sufficient opportunity of being heard. Needless to mention, the AO shall also supply the materials collected during some search proceedings which have been used against the assessee and also any statement recorded behind the back of the assessee. 9. With these directions, the grounds on merit are also set-aside to the files of the AO and are allowed for statistical purposes. 10. In the result, the appeal of the assessee is allowed for statistical pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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