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TMI Blog2024 (12) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... re action carried out in ASL Group. However, the reference made to such information is non-descript and cryptic. Approval for issuing notice was granted by the Addl. Commissioner/Pr. Commissioner of Income Tax - Reasons recorded are shorn of any particulars of information whatsoever. The vague reasons cannot be the basis for assumption of jurisdiction u/s 147 of the Act as held in long line of precedents. The approval granted based on such reasons is devoid of any objectivity and formation of reasons to believe by AO is in relation to a different AY. CIT has granted approval under 151 of the Act based on such reasons apparently without application of mind. The approval under s. 151 so granted thus cannot be countenanced in law. The notice i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and approval granted thereon are reproduced as under:- Information in this case received from the Investigation Wing of the Department that Search and seizure action carried out in the case of ASL and other group on 17.12.2013. During the post search investigation and on the base of document seized during search, it was found that the cash amounting to Rs. 10 lakhs was received by the assessee during F.Y. 2011- 12 from Sh. S.K. Saluja. Vide this office letter dated 12.09.2018 12.03.2018, assessee was requested to file details and in response assessee filed part details. Again, opportunity of being heard is given to the assessee vide letter dated 08.02.2019 as per the principles of natural justice to justify the stand of the assessee. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn Yes Yes 30.08.2012 9. If the answer to item no.8 is in the negative, please state a) The income originally assessed b) Whether it is a case of under assessment, assessment at too low rate, assessment which has been made the subject of excessive loss or depreciation N.A. 10. Whether the provisions of section 150(1) are applicable. If the reply is in affirmative, the relevant facts may be stated against item no 11 and it may also be brought out that provisions of section 150(2) would not stand in the way of initiating proceedings u/s 147 N.A. 11. Reasons for the belief that the income has escaped assessment As per Annexure A 12. Whether the Pr.CIT is satisfied on the reasons recorded by the AO that it is a fit case for the issue of noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , correct jurisdiction available in the instant case is 153C of the Act. The assessee has wrongly taken recourse to section 147 of the Act. Thirdly, the Officer recorded reasons under s. 148 of the Act is different from Officer issuing notice under s. 148 of the Act which is contrary to the ratio of judgement in the case of HYNOUP Food and Oil Industries Ltd. vs ACIT 2008 (7) TMI 192-Gujarat High Court dated 17.07.2008. 8. On merits, the Ld. Counsel for the assessee submitted that the assessee has repeatedly wrote the letter to the AO to contend that no sale transactions of any property had taken place during the FY 2011-12 and therefore, allegation of cash received on sale of property from Shri S.K.Saluja is evidently without any foundatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) TMI 854-Bombay High Court dated 04.01.2017; and * M/s. Paltech Cooling Towers Equip. Ltd vs DCIT, Circle-14(1), New Delhi, 2017 (4) TMI 820-ITAT, Delhi dated 17.04.2017. 11. Furthermore, the approval granted based on such reasons is devoid of any objectivity and formation of reasons to believe by AO is in relation to a different AY. The Ld.Pr.CIT has granted approval under 151 of the Act based on such reasons apparently without application of mind. The approval under s. 151 of the Act so granted thus cannot be countenanced in law. The notice issued under s. 148 of the Act based on reasons and approval suffering from the vice of substantive defect is clearly nonest. Thus, the jurisdiction assumed is without meeting the pre-requisites stipu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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