9911796707
TMI Blog2022 (8) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... in BPTP Ltd. vs. Principal Commissioner of Income Tax [ 2020 (1) TMI 56 - DELHI HIGH COURT] - SLP filed against which was dismissed by the Hon'ble Supreme Court [ 2021 (3) TMI 702 - SC ORDER] - The Hon'ble Delhi High Court in Oracle India Pvt. Ltd.[ 2017 (7) TMI 967 - DELHI HIGH COURT] also echoed the same view earlier. Assessee appeal allowed. AO has plainly overlooked the jurisdictional requirement in terms of 1st proviso to Section 147 of the Act. The jurisdiction assumed under Section 147 in this backdrop is ex facie vitiated and thus requires to be struck down at the threshold. The sanction granted by the CIT. also cannot be said to be in accord with Section 151 of the Act and thus vitiates the assumption of jurisdiction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the assessment order making an addition on a fresh ground while the additions based on reasons recorded were grossly illegal, against the authority of law and have been struck down by CIT(A) herself 3. Because the Ld. CIT(A) has erred on facts and law in confirming the assessment order by reducing the application from Rs. 1,38,88,509/- duly assessed in original assessment u/s. 143(3] to Rs. 1,06,93,623/- in reassessment u/s. 147 of the Act (thus adding a difference Rs. 31,94,886/-) which was added in reassessment order without any show cause notice and against the principles of natural justice and thus was grossly arbitrary, illegal an against the authority of law and was liable to be deleted. 3. When the matter was called for h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lready allowed as application as per Income Expenditure A/c and (c) cash deposits in IDBI Bank already examined as per books of account/bank statements. 6. The assessee has inter alia challenged the validity of reasons recorded alleging escaped assessment on the touchstone of Section 147 of the Act. Therefore, it may be pertinent to reproduce the reasons recorded hereunder: Reasons for the belief that income has escaped assessment: As per AIR information, M/s. Rajiv Educational Trust, C-357, Lohia Nagar, Ghaziabad has done cash deposits of Rs. 10,26,355/- during A.Y. 2009-10. While as per IDBI 44873 book filed by the assessee, it has done cash deposits of Rs. 9,85,970/- during the year under consideration. Further, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and truly all material facts necessary for assessment which is the condition precedent to reopen a completed assessment by issuance of notice under Section 148 beyond four years. There is no allegation of failure which is foundational condition for invoking a provision of Section 147 of the Act beyond four years in the matter of completed assessment. From the reasons recorded, it is not known, what material facts were not brought on record by the assessee in the course of original assessment. The salutary burden placed on the Assessing Officer under the 1st proviso is not discharged at all. The jurisdiction under Section 147 was exercised in a most flippant and nonchalant manner. It is axiomatic that a reopening of completed assessment is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not themselves clearly indicate that there was, in fact, a failure by the assessee to make full and true disclosure of all material facts. The reasons have to explain what material was not disclosed by the assessee which the assessee ought to have disclosed in the instant case. This should be apparent from the reading of the reasons itself. Similar view has been expressed by the Hon'ble Delhi High Court in BPTP Ltd. vs. Principal Commissioner of Income Tax, (2020) 113 taxmann.com 587 (Del). The SLP filed against which was dismissed by the Hon'ble Supreme Court as reported in (2021) 125 taxmann.com 81 (SC). The Hon'ble Delhi High Court in Oracle India Pvt. Ltd. vs. ACIT, 397 ITR 480 (2017) also echoed the same view earlier. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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