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TMI Blog2023 (6) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A), nowhere reference to such show cause or opportunity to assessee for carrying out enhancement is found. Therefore, the enhancement made by the CIT(A) is unsustainable in law. The enhancement so carried out by the CIT(A) thus stand reversed. Action of the lower authorities for making additions on the ground other than recorded reasons - We do not see any merit in such plea. The additions carried out by the Assessing Officer squarely flows from reasons recorded, i.e., large cash deposits in the bank account etc. The additions made comprise of the cash deposits and enhancement of quantum thereof in the appellate proceedings. The objection of the assessee has no substance. Hence, Ground no.2 is dismissed. - I.T.A. No. 7489/DEL/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act as well as further proceeding are void-ab-initio. 2. That the Ld. Assessing Officer has failed to appreciate the legal position that where the assessee company had failed in terms of the notice issued under section 142(1), then the provisions of section 144 are attracted and the Ld. AO has to pass an order to the best of his judgment. In such scenario, the assessment order passed under section 143(3) of the Act is illegal and void ab initio. 3. That the initiation of proceedings u/s. 148 and the consequent assessment u/s 147 r.w.s 143(3) is contrary to law in the absence of any incriminating material to form reason to believe, as per the report of Investigation Wing and AO relied on, which only directs that the AO has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act and none other. The Authorized Representative or the counsel of the assessee is not permitted to move additional grounds on his own accord unless it is signed by the appellant. Hence, on account of this fundamental defect, we decline to grant leave for admission of such additional grounds. The additional grounds so raised are thus dismissed in limine. While holding so, we also simultaneously observe that a power of attorney e-Stamp dated 22.09.2019 has been filed wherein Director Bijay Singh Rajput of the assessee company appears to have authorized Shri Mukesh Kumar Jain, Chartered Accountant for representation on behalf of the assessee. In the same vein, it is pointed out in the course of hearing that in pursuance of application move ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of severe notices under Section 142(1) of the Act, one Shri Surinder Kumar Rawat appeared on behalf of the assessee company on 08.11.2016 and 16.12.2016. No substantiation of the source of deposits in bank was made before the Assessing Officer. The notices remained substantially uncomplied with. Consequently, the Assessing Officer adversely viewed the nature and source of such large deposits. However, the Assessing Officer applied the peak credit theory and assumed that subsequent recurrence of deposit are relatable to earlier withdrawals and arguably sourced out of previous withdrawal. Based on the doctrine of peak credit evolved by judicial precedents, a partial relief was granted to the assessee as a matter of benevolence on the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,45,060/- over and above additions of Rs. 42,10,200/- made by the Assessing Officer. 8. Further aggrieved, the assessee preferred appeal before the Tribunal. However, what is under challenge is the enhancement of assessed income from Rs. 42,10,200/- to Rs. 3,69,55,260/-. As per the main grounds of appeal, the assessee has not objected to the income originally assessed of Rs. 42,10,200/- and confirmed by the CIT(A). 9. When the matter was called for hearing, the ld. counsel for the assessee submitted at the outset that the company is no longer in existence and the name of the company has been struck off from the register of members based on the application moved by the assessee. Hence, in view of the records of Registrar of Companies, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out that the assessee has possibly declared itself solvent to enable it to opt for voluntary winding up before ROC. 10. The ld. counsel for the assessee next contended that the reopening was carried out for making additions towards cash deposits whereas ultimate additions have been carried out under Section 69 with respect to unexplained investment. Thus, the basis of additions have been modified subsequent to the reasons recorded under Section 148(2) of the Act which is not permissible in law as new issues have been racked up beyond the jurisdiction. The ld. DR for the Revenue relied upon the order of the CIT(A) in this regard. 11. We have carefully considered the rival submissions and the perused the orders of the authorities below ..... X X X X Extracts X X X X X X X X Extracts X X X X
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