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TMI Blog2019 (1) TMI 1893X X X X Extracts X X X X X X X X Extracts X X X X ..... y CIT(A), Jalandhar is erred in law and on facts by confirming the action of Ld. AO in exceeding his jurisdict ion and framing the impugned assessment order u/s 143(3) r.w.s. 147/148 and wi thout complying wi th the mandatory condi tions u/s 147/143(2)/151/127 as envisaged under the Income Tax Act, 1961. 3. That having regard to the facts and circumstances of the case, the worthy CIT(A), Jalandhar is erred in law and on facts by confirming the act ion of Ld. AO in making an addit ion of Rs. 6,22,593/- u/s 69 of the Act on account of non declaration of cash and other deposits in bank accounts without considering the submissions of the assessee and without observing the principles of natural just ice. 4. That the appellant craves th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fi t case to issue of not ice u/s 148 of the Income Tax Act , 1961." Sd/- (Paramj it Kaur) Income Tax Of ficer-1(5), Ludhiana The AO framed the assessment at an income of Rs. 6,71,915/- by making the addition of Rs. 4,42,148/-. 5. Being aggrieved the assessee carried the matter to the ld. CIT(A) and raised the objection to the jurisdiction of the AO but the ld. CIT(A) did not find merit in that submission of the assessee by observing that this objection was not raised by the assessee before the AO. On the merit of the case also, the ld. CIT(A) sustained the addition by observing that the AO had duly examined and considered the explanation filed by the assessee regarding deposits in his bank account. 6. Now the assessee is in appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued the notice u/s 148 r.w.s. 147 of the Act, thereafter, the jurisdiction was transferred to the ITO-1(5), Jalandhar who never issued the notice u/s 148 of the Act but framed the assessment u/s 143(3) of the Act. On a similar issue, the ITAT Agara Bench in the case of Jawahar Lal Agarwal Vs ITO (supra) held as under: "Now, as per section 147 of the Act, the AO may assess or reassess any income escaping assessment, if he has reasons to believe such escapement of income. The section starts with the words 'If the Assessing Officer has reason to believe'. The word 'Assessee' in this phrase was substituted for the words 'Income Tax Officer' by the Direct Tax Laws (amendment) Act 1987, w.e.f. 1.04.1988. The same enactment also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as void ab initio, null and void. Since the reasons to believe escapement of income themselves have been declared null and void, all proceedings in furtherance thereof, culminating in the impugned order are also void ab initio and are quashed as such." So, respectfully following the aforesaid referred to order, the assessment framed by the AO who had not issued notice u/s 148 r.w.s. 147 of the Act is quashed. 9. It is also relevant to point out that the AO while issuing the notice u/s 148 of the Act has mentioned that the assessee had deposited a cash of Rs. 1,39,28,640/- during the financial year 2009-10 in the bank account which had escaped assessment. On the contrary, in the assessment order, he mentioned that the cash deposited in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court and in view of the decisions of the Supreme Court and Rajasthan High Court, we hold that the ITO did not have the jurisdiction to proceed with the reassessment, the moment he found the two grounds mentioned in the reassessment notice incorrect or non-existent. Accordingly, we answer the referred question in favour of the assessee, in the affirmative, that the Tribunal was right in cancelling the reassessment." 11. In the present case also, the AO recorded the reasons which were not found to exists on the record, therefore, the reassessment framed deserves to be quashed. In view of the aforesaid discussion, we are of the confirmed view that viewed from any angle, the reassessment framed by the AO was not justified, hence quashed. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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