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TMI Blog2022 (9) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assesse had given credit/transfer entries amounting to Rs.34,57,563/- and Rs.79,31,509/- to M/s. Kamal Clearing and Forwarding Agency Pvt. Ltd., Mumbai and M/s. Star Trade Shipping and logistics Mumbai respectively. Both the parties has confirmed that they have received the payment from the assesse for having provided Customs clearance services to M/s. Romex International, Jalandhar, proprietor of the concern, Sh. Amardeep Singh Makkar through bank account. During the investigation the ld. AO found that sale and purchase was not matching in the return of the assessee which was filed under the State tax Act. It is observed that the business with both the parties was done but there is no reflection in the return of the income of State Tax Authority, VAT. Assessee had NIL sundry debtors during the financial year. As per investigation of ADIT(Inv) the assessee has not furnished any evidence before the ADIT, so the entire purchase was proposed to be added back u/s. 69 or 69A as per the recorded reasons of the ld AO. During the assessment both the amounts were not added with the total income of the assessee back u/s. 69/69A of the Act as unexplained investment. But on the other h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsfer of the same amount to M/s Kamal Clearing & Forwarding Agency Pvt. Ltd., Mumbai and M/s Star Trade shipping and logistics, Mumbai through bank account no. 60041618499 is taxable under section 69/69A of the income tax Act, 1961, as unexplained investment/monies. 4. I have examined the relevant records and after verification of the same with reference to the above issues, I have reasons to believe that income of Rs.79,31,509/- as mentioned above has escaped assessment within the meaning of section clause (a) to explanation 2 to 147 of the Income Tax Act, 1961 for the Assessment year 2011-12. 2. Subsequently a notice u/s. 148 of the Income tax Act 1961, with prior approval of the Pr. CIT-2, Jalandhar, was issued to assessee on 30.03.2018 through ITBA. On 17.05.2018 Sh. Ashray Sarena, CA., counsel for the assessee attended the office and filed written submissions stating therein that the return of income already filed on 17.09.2011 for the A.Y. 2011-12 may be treated to have been furnished in response to the notice u/s. 148 dated 30.03.2018. He further demanded a copy of reasons recorded in the case of and the same were provided to him. Later on the assessee filed return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount did not match with VAT returns filed by the assesee....." 3.3 As per the arguments of ld. Counsel, the issue was taken in reopening of assessment related to escapement of income amount to Rs.74,43,269/- u/s. 69/69A of the Act. But the addition was made without considering the recorded reasons & a different issue was considered & added back the amount of Rs. 38,10,700/- on account of 8% net profit on turn over u/s. 44AD. There is no similarity or any relevance in between the recorded reasons and addition made u/s. 143(3)/147 of the Act. 3.4 During the assessment proceedings, the assessee submitted detailed documents related to the clarification of payment to M/s. Kamal Clearing and Forwarding Agency Pvt. Ltd and M/s. Star Trade Shipping and logistic. The documents are enclosed in the APB from page 1 to 83. The reply to the Assessing Officer related to the clarification of payment to the parties in APB 84 to 96. 3.5 The ld. Counsel vehemently argued and relied on the judgement of Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd., vs. CIT in ITA NO.3985/DEL/2017,Sourav Bakshi vs. ITO, ITAT Amritsar Bench, ITA no. 720/ASR/2019 date of order 23.12.2021. He furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance in respect of the items of club fees, gifts and presents, etc., then in view of our discussion as above, he would have been justified as per Explanation 3 to reduce the claim of deduction under sections 80HH and 80-I as well. 21. In view of our above discussions, the Tribunal was right in holding that the Assessing Officer had the jurisdiction to reassess issues other than the issues in respect of which proceedings are initiated but he was not so justified when the reasons for the initiation of those proceedings ceased to survive. Consequently, we answer the first part of question in affirmative in favour of revenue and the second part of the question against the revenue." The heading of section 147 is "income escaping assessment" and that of section 148 is "issue of notice where income escaped assessment". Section 148 is supplementary and complimentary to section 147. Sub-section (2) of section 148 mandates reasons for issuance of notice by the Assessing Officer and subsection (1) thereof mandates service of notice to the assessee before the Assessing Officer proceeds to assess, reassess or re-compute escaped income. Section 147 mandates recording of reasons to believe by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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