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TMI Blog2021 (5) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of mind. Applying the dictum as laid down by the Supreme Court in the case of GVK Driveshaft (supra), we are of the view that disposing of the objections raised by the assessee against the reasons recorded before issuance of notice under Section 148 of the Act, though not part of the statutory requirement, as prescribed under the Act, however, same is guided by the directions issued by the Apex Court. The specific objections raised by the writ applicant, produced on record at page-44 to 56 to this writ application, have not been properly dealt with by the AO. The lapse is in clear violation of the decision of the Apex Court. We are of the view that the AO has passed the order mechanically and without application of his mind. In other words not in a meaningful manner.In view of the above, this writ application succeeds in part. - R/Special Civil Application No. 21123 of 2019 - - - Dated:- 11-5-2021 - Honourable Mr. Justice J.B.Pardiwala And Honourable Mr. Justice Ilesh J. Vora For the Petitioner(s) : Mr Omkar C Dave For the Respondent(s) : Mrs Kalpanak Raval ORAL ORDER (PER : HONOURABLE MR. JUSTICE ILESH J. VORA) 1. By filing this petition u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Mr. Bhagchand Sohanlal Jain. Copy of PAN (ACVPJ1097K), Certificate of registration issued by Central Board of Excise and Customs, ITR for the Year 2911-2012, Voter ID, Initial deposit of Indusind Bank Cheque No. 735352 for ₹ 50000.00 (Account No. 0024-473635-001)were furnished as KYC documents at the tine of opening the account and Mr. Bhagchand Sohanlal Jain had declared that he is into tne activity of Maintenance or repair services with an estimated annual turnover of ₹ 15 Crs. Customer had opened one more sole proprietorship account bearing No. 510011016605 on 16th sept.2004 in the name of Harshit Traders with the branch and both the accounts stand closed on 24.03.2015 and 23.04.2012 respectively. Consolidated summary of transactions from 01.04.2014 to till date of closure. Clearing Cheque deposits amounted to ₹ 0.15Crs, RTGS/NEFT credits amounted to ₹ 3.16 Crs, Internal Transfers Credits amounted to ₹ 1.31 Crs. Against these credits, RTGS/NEFT debits amounted to ₹ 0.30 Crs, Internal transfers debits amounted to ₹ 1.08 Crs and 8 Direct Import remittances amounted to ₹ 3.26 Crs were affected by the customer. Noticing high value i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, case record of the assessee has been verified and found that there is huge credits in the bank account of the assesse and the assessee has shown very low Income compared to h 'ge turnover and there is very low expenses compared to turnover. On perusal of purchase register submitted by the assessee, it is found that the assessee has shown to have made purchase from Kailash Devi Singhavi (PAN 4JLPS4531L) of ₹ 6,65.236/-. However, on perusal of Return of Income of Kailash Devi Singhavi it is found that she has filed her Return of Income in Sahaj Form and shown income from salary and income from other sources and no income from business was shown Therefore the purchase shown by the assessee from Kailash Devi Singhavi is not genuine. Further, during the course of verification by the DDIT( Inv), the assessee not submitted any cogent documents in respect of credit entries in his bank account. In view Of the above fact / have reason to believe that income of ₹ 255,69,59,651/has escaped assessment in the hard of the assessee for A.Y.2012-13 within the meaning of section 147 of the I.T. Act. 5. In this case a return of income was filed for the year under co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the notice for reopening. Likewise the time frame for the Assessing Officer to dispose of the objections would apply only if the assessee raises objections within the time provided hereinabove. This, however, would not mean that if in either case, the assessee misses the time limit, the procedure provided by the Supreme Court in the case of GKN Driveshafts (India) Ltd (Supra) would not apply. If only means _ that the time frame provided hereinabove would not apply in such cases. 4. In view of the above facts, you are requested to submit your say within permissible time limit as mentioned above for further proceedings of the case 4. The writ applicant raised various objections vide communication dated 03.07.2019, both on the ground of jurisdiction as well as on merits and requested the respondent to drop the reassessment proceedings. Same came to be rejected by the respondent vide order dated 26.08.2019, holding that the assessment is valid and within jurisdiction. 5. Being aggrieved by the impugned notice as well as the order disposing of the objections, the writ applicant came up with present writ application. 6. We have heard the learned Senior Advocate Mr. Sun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and as such in absence of any failure on the part of the applicant to disclose fully and truly all material facts, the assumption of jurisdiction by the AO under Section 147 of the Act is invalid. 11. On the other hand, learned Senior Standing Counsel Mrs. Kalpana Raval appearing for the revenue, reiterating the stand adopted by the revenue in affidavit in reply as well as in the order of disposing of the objections, submitted that the action taken by the AO is just, legal and proper and does not warrant any interference. It was further submitted that the AO has assigned cogent and sound reasons while disposing the preliminary objections filed by the writ applicant. It was further submitted that the impugned notice has been rightly issued by invoking Section 147 of the Act as writ applicant failed to disclose the truly and fully material facts with regard to credit entries as referred by the AO in the reasons recorded for the reassessment. It was submitted that the principle of change of opinion would not be applicable in the present case as the information received after framing of the assessment order which clearly shows that the assessee failed to disclose the material, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced on record at page-44 to 56 to this writ application, have not been properly dealt with by the AO. The lapse is in clear violation of the decision of the Apex Court. We are of the view that the AO has passed the order mechanically and without application of his mind. In other words not in a meaningful manner. 15. In view of the above, this writ application succeeds in part. The order disposing of the objections filed by the assessee dated 26.08.2019 at Annexure A, page-20 to 35 to this petition is hereby set aside and the matter is remitted to the AO. The AO shall take into consideration the objections raised by the assessee and pass a fresh speaking order in accordance with law. 16. Let this exercise be undertaken within a period of six weeks from the date of the receipt of this order. We may clarify that we have otherwise not expressed any opinion on the merits of the case and we should otherwise also not do so as we are remitting the matter to the AO. 17. In the event, if the order that the AO may pass a fresh, is adverse in any manner to the assessee, then, it shall be open for him to challenge the same before the appropriate forum in accordance with law. H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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