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TMI Blog2024 (11) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... ved from the Investigation Wing of the Department. The reasons to believe are not of the AO. Assessment is liable to be quashed on this ground alone. We find no infirmity in the findings of the CIT(A) on this issue. We see no merit in ground no. 2 of appeal; hence, the same is dismissed. Addition u/s 37 - payment made to two companies - contention of assessee is that the assessee has not claimed expenditure against the payments made to Telestar Packaging P. Ltd., Sahara Prime City Ltd., during the relevant period - The CIT(A) on this issue has recorded finding of fact that, the impugned payments to the above two companies were advances for execution of work and the said advances were not capitalized in work-in-progress and therefore there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has erred in quashing assessment merely on the ground that reasons recorded for reopening the assessment do not indicate independent application of mind by the Assessing Officer (AO). She submitted that though the initial information was received by the AO from the Additional Director of Investigation Wing, but the AO has also independently applied his mind and has recorded reasons to believe that income in the case of assessee has escaped assessment. The ld. DR prayed for quashing findings of the CIT(A) and upholding validity of assessment proceedings. 3.1. On merits of the addition, the ld. DR vehemently supported the findings of the AO in making disallowance of payments aggregating to Rs. 28,00,32,120/- to M/s. Telestar Packaging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We have heard the submissions made by rival sides and have examined the orders of authorities below. The assessee/respondent filed its original return of income for AY 2010-11 on 04.10.2010 declaring total income of Rs. 40,59,90,641/-. The assessee thereafter filed revised return of income on 03.02.2012 declaring total income of Rs. 41,56,39,018/-. The assessment u/s. 143(3) of the Act was made vide order dated 27.03.2014. Thereafter on the basis of information received from Investigation Wing, assessment for AY 2010-11 was reopened and notice u/s. 148 of the Act was issued to the assessee on 01.04.2014. In response to the said notice, the assessee filed revised return on 25.01.2014 declaring gross total income of Rs. 41,56,39,018/-. 6. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is ground alone. We find no infirmity in the findings of the CIT(A) on this issue. We see no merit in ground no. 2 of appeal; hence, the same is dismissed. 8. As regards ground no. 3 of appeal, the contention of assessee is that the assessee has not claimed expenditure against the payments made to Telestar Packaging P. Ltd., Sahara Prime City Ltd., during the relevant period. The CIT(A) on this issue has recorded finding of fact that, the impugned payments to the above two companies were advances for execution of work and the said advances were not capitalized in work-in-progress and therefore there is no reason otherwise also for the AO s conclusion that the said payments are to be exclude from WIP, thus rendering the finding and conclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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