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TMI Blog2022 (9) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... nical glitches the appeals were instituted. A condonation application was filed by the assessee in view of the short payment of appeals fees which has already been rectified and balance fees has been paid.Reason of delay is well explained by the assessee. With the consent of ld. Sr. Dr, the delay of 1014 days is condoned. 3. The assessee filed prayer in form of ground before the bench which is reproduced as below: "a. That the initiation of concealment proceedings are without any credible conclusive evidence which have been proved frivolous, wrong and erroneous itself in the order passed and therefore, all the proceedings initiated on such frivolous evidence are nullity abinitio and does not stand test of law. b. That the averments submitted by the appellant of no investment of any kind being made in the trust - M/s Mars Educational Trust during the impugned financial year under appeal have not been proved wrong by any corollary evidence, if any available with the Ld. A.O. and consequent finalization of assessment proceedings on other superfluous matters not covered by the reasons recorded to circumvent the deficiency in reasons is devoid of any credibility in the eyes of law. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the said notice, but entire addition was made without considering a single point of the recorded reason. The assessee filed appeal before the ld. CIT(A) &relief was granted in appeal amount to Rs.1,75,000/-. But other point related to addition Rs.6 lac was upheld. Also, the legal point was not adjudicated by the ld. CIT(A) in the impugned appeal order. 6. Being aggrieved, assessee filed an appeal before us. 7. During the hearing before the ITAT, none was present on behalf of the assessee. The matter was taken with a consent of the ld. Sr. DR. The counsel of the assessee filed Paper Book bearing page nos. 1 to 33 which is kept in the record. The assessee is a businessman operating petrol filing station at Anantnag, Kashmir as capacity of proprietor in number of years. Apart from the said business,the assessee is also a trustee in M/s Mars Educational Trust, Bijbehara, Kashmir which is a charitable trust engaged in imparting education to children. The appellant was served a notice u/s 148 with regard to special information received by the ld. AO regarding investment of appellant as founder in M/s Mars Educational Trust, for F.Y. 2007-08 relevant to A.Y. 2008-09. The reasons fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion the ld. Counsel elaborately discussed the error in assessment order of the ld. AO related to non-considering the reasons recorded during addition in total income. The extract from written submission of the assessee is reproduced as below: "13. That the appellant places his reliance on the following decided case laws of Hon'ble Supreme Court who have laid down that there must exist reasons for holding a belief of escapement of income, the question whether reasons were adequate or sufficient is not for the courts to decide. It is open to the assessee to establish that there in fact existed no belief or that the belief was not a bona fide one or was based on vague, irrelevant and non specific information. A. That as stated under provisions of Income Tax Act, 1961, the Ld. A.O. must have definite "reasons to believe" that income, chargeable to tax has escaped assessment. The important words U/s 147 are 'has reason to believe' and these words are stronger than the words 'is satisfied'. Ganga Saran & Sons Pvt. Ltd V. ITO (1981) 130 ITR 1(SC). B. That before initiation of the proceedings U/s 147/148 the Ld. A.O. has miserably failed to determine and prove that commencement of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingredient is that there should exist "reason to believe" that income chargeable to tax has escaped assessment. The honble Supreme Court in the case of Asstt. CIT v. RajdshJhaveri Stock Brokers (P). Ltd. [2007] 291 ITR 500, has held that provisions of section 147 does not give a carte blanche to Ld. A.O. to disturb the finality of the intimation U/s 143(1) at his whims and caprice; he must have reason to believe within the meaning of the Section. CIT Vs. Orient Craft Ltd. [2013] 29 taxmann.com 392 (Delhi). F. That the appellant submits that the reasons for reopening assessment, were agitated & objected by the appellant on the grounds that in view of NIL- investment by the appellant in the impugned - Mars Educational Trust the reassessment proceedings are violative of principle of law and therefore it was mandatory for the Ld. A.O. to dispose off the preliminary objections raised by the appellant against the reasons recorded for reopening assessment by passing speaking order before proceedings with assessment. The Ld. A.O. without considering assessee's objection proceeded to pass orders for reassessment which is devoid of any legal standing and is fit to be quashed on the lines ..... X X X X Extracts X X X X X X X X Extracts X X X X
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