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TMI Blog2024 (11) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is unable to show that the information was given to the jurisdictional assessing officer before passing the reassessment order Accordingly ground No.3 is rejected. Addition on the basis of documents submitted with Punjab National Bank which were audited financial statements - During the course of reassessment proceedings the notices issued by the AO were not complied by the assessee properly and a letter was written to the AO which is incorporated by the AO of his reassessment order. Accordingly with the consent of both the parties during the course of hearing, we remit the issue to the AO for de novo consideration and fresh decision as per law. The assessee is directed to file necessary documents that would be essential and required for substantiating its case and for proper adjudication by the revenue authorities. Appeal by the assessee is partly allowed for statistical purposes. - Smt. Beena Pillai, Judicial Member And Shri Laxmi Prasad Sahu, Accountant Member For the Appellant : Shri R.E. Balasubramanyam, CA For the Respondent : Shri Sunil Kumar Agarwal, CIT(DR)(ITAT), Bengaluru. ORDER PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER This appeal is filed by the assessee against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed turnover in the Profit Loss account submitted to the department when compared to the financial statements submitted to Punjab National Bank. Accordingly after obtaining approval from the competent authority the case was reopened u/s. 147 by issue of notice u/s. 148 to the assessee on 28.03.2018 served on 02.04.2018. In response the assessee filed letter dated 09.11.2018 stating that the return filed on 29.09.2011 be treated as return filed in response to notice u/s. 148. Accordingly statutory notices were issued to the assessee. 3. During the course of reassessment proceedings, the assessee was asked to file certain details regarding break up of sundry creditors, sundry debtors and confirmation from sundry creditors, however the same was not filed. The AO noted that the financial results reported in the return filed u/s. 139(1) and the financials shown to the Punjab National Bank were different, there is difference in the sales and purchases. The AO computed the GP rate @ 23.76% whereas the GP rate shown to Punjab National Bank is 18.53%, accordingly the AO computed the GP rate on the turnover shown to Punjab National Bank and computed profit of Rs.5329.35 lakhs. The AO after m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e this, the AO passed the reassessment order on 30.12.2019 which was after declaration of moratorium. Further the ld. AR submitted that the AO has made addition only on the basis of fraudulent financial statement with Punjab National Bank and the AO has not provided corroborative evidence to support the additions made. The AO has chosen only the inflated sales shown to Punjab National Bank and not considered the inflated expenditure. It is not open to the AO to pick and choose which figures to rely upon from the financial statements without rejecting the books of account. The ld. AR has filed paperbook containing pages 1 to 140 which is placed on record. 6. The ld. DR relied on the order of lower authorities and submitted that in respect of ground No.1 regarding issuance of notice within period of limitation of 6 years as per section 149 of the Act that notice was issued on 28.3.2018 and duly served to the assessee on 02.04.2018. The section is very much clear that notice should be issued within specified time provided under the Act and the AO has done so. There is no specific words regarding service of notice to the assessee within the specified time limit. Accordingly there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough the provisions of the Act, it talks about the issue of notice, the section 149 is very much clear that notice must be issued within the period as per section 149(1)(a)/(b). The section talks about the time limit specified for issue of notice only and not for the service of notice within the period specified. The judgment relied on by the ld. AR is not appliable since in that case the revenue was unable to prove with cogent material that notice was despatched to the assessee within the specified date. Here in the case on hand, there is no dispute on such point. Accordingly ground No.2 is rejected. 12. Ground No.3 : We note from the documents submitted that Hon ble NCLT, Bangalore vide order in C.P.(IB) No.103/BB/2018 dated 14.12.2018 u/s. 7 of IBC, 2016 r.w. Rule 4 of I B(AAA) Rules, 2016 granted moratorium and Insolvency Professional was appointed as per para 9(2) of the order. Later on Hon ble NCLAT, New Delhi passed order in C.A.(AT) (Insolvency) No.68 of 2019 dated 14.10.2020 as under:- 23. In view of the law enunciated by the Hon ble Supreme Court of India in the above-mentioned cases and the facts and circumstances of this case, it is clear that the Application filed und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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