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TMI Blog2025 (4) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... Senior Standing Counsel Mr. Karan G. Sanghani for the respondents. 2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan G. Sanghani waives service of notice of rule on behalf of the respondent No.2. With the consent of learned advocates for the respective parties, the matter is taken up for final hearing, as the issue involved is very short. 3. These petitions are filed under Article 226 of the Constitution of India, challenging the notice of reopening dated 30th March 2021, issued under Section 148 of the Income Tax Act, 1961 (for short "the Act"), as well as the orders disposing the objections filed by the petitioner. 4. The brief facts of the case are as under:- 4.1 The petitioner filed its original returns of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ok sales or the funds corresponding to the under invoicing or cash sales. The above-mentioned assessee has carried out transactions through M/s. National Shroff and obtained the cash/cheque. 3. Analysis of information collected/received: The assessee has not filed return of income for A.Y. 2013-14. But he has carried out transactions of Rs. 1,68,70,100-as mentioned above through M/s, National Shroff and obtained the cash/cheque. 4. Enquiries made by the AO as sequel to information collected/received: On verification of the records and available information, it is seen that assessee has carried out transactions through M/s. National Shroff and obtained the cash/cheque. Since the assessee has not filed return of income for A.Y. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... psed from the end of assessment year under consideration. Hence necessary sanction to issue notice U/s. 148 has been obtained separately from Principal Commissioner of Income Tax as per the provisions of Section 151 of the Act." 5. Similar reasons were recorded for the Assessment Years 2014-15 and 2015-16. 6. It is the case of the petitioner that, upon perusal of the reasons for the Assessment Year 2013-14 and 2014-15, the petitioner has not filed return of income. In fact, the petitioner has filed the return of income for all the three years. 7. Learned advocate Mr. Fenil Mehta, appearing for the petitioner, submitted that, though the petitioner has requested to provide the copy of alleged incriminating documents seized and the stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived by him without conducting any enquiry so as to find out that what is the material, on the basis of which the alleged information has been passed or whether any amount received by cheque reflected in such information. 7.4 It was further submitted that, upon perusal of the findings recorded in the reasons, it only records the conclusion and crucial link between the information received but the formation of belief is missing. 7.5 Mr. Mehta learned advocate further submitted that, there is no escapement of income in view of the non-providing in the reasons recorded and on the basis that the amount of income of Rs. 1,68,70,100/- for the Assessment Year 2013-14 is also missing. It was pointed out in the reasons recorded that such an inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 34, wherein, it was held that, to ascertain as to whether the commencement of reassessment proceedings was valid, it has only to be seen whether there was prima facie some material on the basis of which the department could reopen the case and the sufficiency or correctness of the material is not a thing to be considered at this stage. 8.1 It was submitted that on the basis of the information available from the material found during the search of M/s. National Shroff Angadiya Group, it was found that the Assessing Officer received cheque from the said Group and on the basis of such information the Assessing Officer has come to the conclusion that he has a reason to believe for the escapement of income. 8.2. It was submitted that the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. The details of the transactions carried out by the petitioner appear to pertain to the reliefs from the seized material or from any other source. It is also pertinent that the respondent-Assessing Officer has not provided any documents, statements or any material to the petitioner but, on the contrary, in the affidavit-in-reply in Paragraph No.9, it is averred that such information cannot be provided to the assessee because it is a confidential matter of the department. Such a stand taken by the respondent-Assessing Officer is contrary to the provision of the Act, inasmuch as, unless and until the petitioner is provided the material upon which the reasons are recorded the action of the respondent is illegal. 11. Upon perusal of the obje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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