9911796707
TMI Blog2025 (4) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... odified): "1. The order of the CIT(A) is erroneous both on facts and in law. 2. The Ld. CIT(A) ought to have seen that according to the AO, the Form 26AS showed a receipt of Rs. 15,69,777/- from ITC Limited and Rs. 1,54,246/- from Andhra Papers Ltd., towards sale of scrap. The CIT(A) ought to have considered the fact that TCS is effected on purchases and not on sale. 3. The Ld. CIT(A) ought to have seen that no such sale was effected and even if the sale of scrap were to be effected to these institutions, the amount cannot be termed as income assessable u/s. 69A of the Act. 4. The Ld. CIT(A) ought to have considered the fact that the other two companies recorded sales against the assessee's PAN wrongly through the assessee did not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the reasons recorded, as per which, income chargeable to tax had been escaped assessment and accordingly, notice u/s. 148A(b) of the Act, dated 24/03/2022 was issued with the reason that as per the NMS Model of Insight Portal for FY 2014-15, relevant to the AY 2015-16, the assessee has entered into various financial transactions including the transactions for purchase of scrap and relevant TCS u/s. 206C of the Act and sale of immovable property valued at Rs. 30 lakhs or more. In response to notice u/s. 148A(b) of the Act, the assessee has filed its submissions on 30/03/2022 and explained that the firm had already closed its business activities w.e.f 1/4/2014 and hence, there is no business activity for the year under consideration. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs u/s. 148 of the Act vide order u/s. 148A(d) of the Act, dated 28/04/2022, on the assumption that income escaped assessment is Rs. 50 lakhs or more, but, finally assessed the total income at Rs. 17,24,023/-. 5. Being aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee reiterated its submissions made before the AO and submitted that the firm has closed its business w.e.f 28/03/2024 and also bank accounts have been closed on the very same date and thus, the transactions reported in Form-26AS do not pertain to the assessee. The CIT(A), after considering the relevant submissions of the assessee and also taken note of the Form-26AS and amount reported therein observed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, going by the preceding the amount escaped assessment is only to an extent of Rs. 17,24,023/- as per the assessment order itself and thus, the notice issued by the AO u/s. 148 of the Act, dated 28/04/2022 is without jurisdiction and consequent assessment order passed by the AO cannot be sustained. Therefore, he submitted that the assessment order by the AO should be quashed. 7. The Learned Sr. AR, Sri D. Praveen, on the other hand, supported the order of the CIT(A) and submitted that at the time of reopening of the assessment, the AO needs to consider prima facie information which suggests escapement of income to an extent permissible under law for issue of notice but, it is not required to prove the escapement of income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nced from the notice issued u/s. 148A(b) of the Act where the AO considered the issue of TCS reported u/s. 206C of the Act in Form-26AS and sale of immovable property valued at Rs. 58,76,000/-. However, in the order passed u/s. 148A(d) of the Act, the AO considered the income escaped assessment on account of time deposit and cash deposit in a banking company and savings bank account amounting to Rs. 3,15,18,299/-. Further, in the final assessment order passed u/s. 143(3) r.w.s 148 of the Act, the AO has accepted the fact that there is no such cash deposit in the bank account on the basis of inquiry conducted u/s. 133(6) of the Act to the State Bank of India and in response, the Bank has replied that the bank account has been closed on 28/03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quiries by calling replies from the assessee to ascertain the correct facts with regard to the escapement of income and for issue of notice under the relevant provisions of the Act. In the present case, going by the proceedings u/s. 148 of the Act, the AO issued initial notice u/s. 148A(b) of the Act based on some information which is not existing at the relevant point of time which is evident from the subsequent order passed u/s. 148A(d) of the Act where the AO has dropped the earlier information considered for issue of notice but considered some other information which was also not in existence at that relevant point of time which is evident from the assessment order passed by the AO u/s. 143(3) r.w.s 147 of the Act, dated 18/03/2024 wher ..... X X X X Extracts X X X X X X X X Extracts X X X X
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