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TMI Blog2024 (8) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 271(1)(c) of the Income-tax Act, 1961 (in short 'the Act'). Appeals pertain to assessment years 2007-08 and 2008-09. ITA Nos.4395/Del/2016 & 4396/Del/2016 (Quantum Appeals) 2. The grounds raised and issues arising in these appeals are common. Basically, two issues arise out of these appeals. The first one is a legal issue challenging the validity of reopening of assessment under Section 147 of the Act and the assessment orders passed consequent thereto, whereas, the second issue is on the merits of the additions sustained by learned first appellate authority. Insofar as the first issue is concerned, briefly, the facts are that the assessee is a resident-individual. Based on information available on record indicating that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uent notice issued on 8th July, 2014 would not vitiate the assessment proceedings as the earlier notice was issued within the period of limitation. Accordingly, he rejected assessee's grounds. 3. Before us, learned Counsel appearing for the assessee reiterated the stand taken before the first appellate authority. He submitted that the notice dated 28th March, 2014 referred to by the first appellate authority was never served on the assessee. He submitted that the only notice under Section 148 of the Act served on the assessee was notice dated 8th July, 2014. Thus, he submitted that the notice under Section 148, having been served after expiry of six years, proceedings are barred by limitation. 4. Per contra, the learned DR submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 148 of the Act. Notice dated 8th July, 2014 validly served on the assessee was certainly beyond the period of limitation prescribed in the Statute. That being the factual position emerging on record, we have no hesitation in holding that proceedings under Section 147 culminating in the assessment order passed under Section 144 read with Section 148 of the Act are invalid. Therefore, the impugned assessment orders deserve to be quashed. Accordingly, we do so. 6. Insofar as the issue on merits is concerned, though, in view of our decision on the legal issue it has become academic, however, since the parties were also heard on this issue, we deem it appropriate to render our decision on the issue. 7. As discussed earlier, certain cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before the Investigation Wing and also copy of the challan evidencing payment of Rs. 45,180/-. The assessee submitted that business profits for assessment year 2007-08 and 2008-09 having been already offered to tax, no further addition can be made. 8. The learned DR strongly relied on the observations of learned first appellate authority. 9. We have considered rival submissions and perused materials on record. The fact that the cash deposits appearing in assessee's bank account in different assessment years are receipts from his business activity has been accepted by the learned first appellate authority. However, he has estimated the income at 25% of the receipts. From the materials placed before us, it is observed that the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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