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TMI Blog2023 (4) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... aterially different - HELD THAT:- The assessment order in the second round was passed under Section 147 read with Section 144 of the Act. Section 144 of the Act concededly deals with the situation where inter alia, the assessee fails to file a return or fails to comply with all the terms of the notice issued under Section 142 or fails to comply with the direction issued under sub-section (2A) of Section 142 or fails to comply with the terms of the notice issued under Section 143(2) of the Act. As noted above, the record shows that the respondent/assessee s return was in place. The respondent/assessee had taken the plea that the earlier return should be treated as a return in response to notice under Section 148 of the Act. AO to take recour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere carried out on 26.03.2010. It appears that what emerged from the action taken by the appellant/revenue was that Aseem Kumar Gupta and his group had provided accommodation entries to several beneficiaries, by opening bank accounts in the name of several proprietary concerns and companies controlled by the said group, either directly or through their employees. 3.3. Insofar as the respondent/assessee is concerned, qua the AY in issue, the return was filed under Section 139(1) of the Act on 26.10.2009. 3.4. The respondent/assessee had declared his income as Rs. 5,073/-. 4. The admitted facts are that the Assessing Officer (AO) qua this return carried out a scrutiny assessment and framed an assessment order on 26.12.2011 under Section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that no return had been filed by the respondent/assessee and thus proceeded to pass a fresh assessment order on 02.03.2015, by taking recourse to the provisions of Section 147 read with Section 144 of the Act. 12. The AO, accordingly, concluded that the respondent/assessee's taxable income was Rs. 10,98,39,924/-. While reaching this conclusion, the AO made almost the very same additions which were the subject matter of the first round. 12.1 This is an aspect which is not disputed by Mr Sanjay Kumar, senior standing counsel, who appears on behalf of the appellant/revenue. 13. The respondent/assessee, being aggrieved by the assessment order dated 02.03.2015 passed by the AO, once again, preferred an appeal with the CIT(A). This time aro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent proceedings under Section 147/148 of the Act. 17. To a query, as to whether any fresh material was found by the AO, Mr Kumar candidly stated that there was no fresh material found. 18. Mr Kumar's argument, however, was that based on the material found in the first round, reassessment proceedings could have been triggered by the AO, for the reason that the scheme of Section 153C and Section 147/148 are materially different. Analysis and Reasons 19. We have heard Mr Kumar at some length and also perused the record. The facts set forth hereinabove by us are not in dispute. 20. What has emerged from the record, to put it pithily, is the following: (i) The assessment order dated 26.12.2011 in the first round was framed under Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent/assessee's return was in place. The respondent/assessee had taken the plea that the earlier return should be treated as a return in response to notice under Section 148 of the Act. 24. Therefore, for the AO to take recourse to Section 144 of the Act was completely uncalled. 25. In our opinion, Section 144 of the Act was taken recourse to under a mistaken belief, or otherwise, that there was no return on record. 26. Since a response was on record, undoubtedly, the AO was required to issue a notice under Section 143(2) of the Act and then proceed further in the matter, and perhaps thereafter, frame an assessment under Section 147 read with Section 144 of the Act. 26.1. This was not done. 27. Therefore, we are of the view t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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