9911796707
TMI Blog2024 (5) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... and one is actually realized and statement of account submitted to the petitioner, the same is duly recorded in the books of accounts reflecting the actual realized rate of foreign exchange. In such circumstances, on application of the basic accounting principles, when the petitioner has produced all the material before the assessing officer during the course of the regular assessment, AO could not have formed a prima facie belief that there is escapement of income in view of the material available on record in form of details of bank accounts along with the bank statement for the month of March-2016 of the Jammu Kashmir Bank, details of exchange, difference/ net loss in foreign exchange transaction and translations along with the copies of the ledger account of the exchange difference, details of expenditure in foreign currency, copy of Form-15CA filed by the petitioner-company, wherein all details of foreign remittance are reflected. When such record was already available with the respondent Assessing Officer, which was produced by the petitioner assessee during the original assessment proceedings, he ought to have considered the same and applied his mind with regard to the mate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide details of party wise foreign outward remittances along with nature, purpose and source of foreign remittance vide notice dated 2nd August, 2018. In response to the notice, the petitioner furnished details along with Form 15CA containing the name of the party, amount of foreign remittance, nature and purpose of transaction along with relevant DTAA. 6.3 It is the case of the assessee that on furnishing all the details, the assessment order u/s. 143(3) of the Act was passed on 12th December, 2018. The respondent has issued notice u/s. 148 of the Act after obtaining the necessary satisfaction of Range 2(1), Ahmedabad. 6.4 The petitioner filed return of income in response to the notice and requested for reasons recorded by the respondent Assessing Officer. By notice u/s. 143(2) dated 21.05.2021, the reasons recorded for reopening of assessment was provided, which reads as under :- Issues as per reasons recorded for reopening : As per the information received from the credible sources that a survey action u/s. 133A of the I.T. Act, 1961 was conducted on J K bank corporate Headquarter MA Road, Srinagar on 11 June 2019. The survey was limited in nature conducted for collection of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n so received, it is noticed that the assessee is one of the beneficiaries who has entered into transaction of Rs. 62,77,93,196/- in the form of inward and outward remittances wherein a survey action was carried out by the investigation Wing of Srinagar, Kashmir. Failure on the part of the assessee to disclose fully and truly all the material facts necessary for the assessment, the income of the assessee has escaped assessment to the tune of Rs. 62,77,93,196/- for the AY 2016-17 within the meaning of Section 147 of the Income-tax Act, 1961. I have, therefore, reason to believe that this is a fit case for reopening the assessment u/s. 147 of the Act and for issue of notice u/s. 148 of the Income-tax Act, 1961. 6.5 The assessee filed detailed objections dated 18th October, 2021 to reassessment u/s. 147 of the Act, wherein it was contended that the petitioner assessee has furnished all the requisite details during the regular course of assessment and there is no fresh material available with the respondent to form a reasonable belief that the income has escaped assessment. It was also contended that the respondent has taken the entire value of the transaction to be the escapement of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was submitted that the petitioner has made entries in its books of accounts on the basis of the bank statement and reconciliation statement is also produced during the course of the regular assessment and the Assessing Officer while passing the order u/s. 143(3) of the Act has not raised any objections and return of income is accepted. 8. On the other hand, Mr. Varun K. Patel, learned Senior Standing Counsel for the respondent submitted that the reopening of the assessment is within four years and therefore, proviso to Section 147 would not apply. It was pointed-out that the respondent Assessing Officer has fresh material in form of Survey report of the Jammu Kashmir Bank and on the basis of which it was found that there was a mismatch of the remittance amount as the bank has calculated two remittance amount one on the notional basis and other on the actual realization basis and it is not known as to which amount is taken for accounting purpose by the assessee and therefore, the respondent Assessing Officer has formed the reason to believe to reopen the assessment. It was submitted that only because amount of entire transaction is taken into consideration, that cannot be taken as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction undertaken by the petitioner with the respondent bank has resulted into escapement of income to the tune of Rs. 62,77,93,196/- in form of inward and outward remittances. In view of such facts, when the Jammu Kashmir Bank has clearly stated in the reply that there are two different entries captured in the statement of account and remittance sheet have two different types of rate one is notional and one is actually realized and statement of account submitted to the petitioner, the same is duly recorded in the books of accounts reflecting the actual realized rate of foreign exchange. In such circumstances, on application of the basic accounting principles, when the petitioner has produced all the material before the assessing officer during the course of the regular assessment, the respondent Assessing Officer could not have formed a prima facie belief that there is escapement of income in view of the material available on record in form of details of bank accounts along with the bank statement for the month of March-2016 of the Jammu Kashmir Bank, details of exchange, difference/ net loss in foreign exchange transaction and translations along with the copies of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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