Without prejudice to the ground no. 1 above and on the fact and circumstances of the case, the Ld. CIT(A) has erred in confirming the addition of Rs. 3,82,55,045/- upholding the addition done by the Sales tax Authorities without any evidence in hand with the CIT(A) and in view of the fact that the Appellate Authorities in VAT have also set aside this addition with a direction for fresh assessment having regard to the fact that the factory premises have been sealed by the Sales Tax Authorities and the assessee was left no option to produce the evidence.
Sec. 147 & 148 of Income Tax Act, 1961—Reassessment— Reasons recorded by the AO cannot be said to be proper to form a belief of escapement of income as the information so received was neither found well founded nor the AO made any efforts to make any verification or application of his mind on the same and the provisions of section 147 do not give unfettered powers to reopen the assessment and the AO is required to satisfy the pre-conditions as given in the said section, which is lacking in the present case -Issue of notice u/s. 143(2) is mandatory in the reassessment proceedings and its failure to do so, make the re-assessment as void - HARI STEELS & GENERAL INDUSTRIES LTD. V/s DEPUTY CIT - [2019] 75 ITR (TRIB) 090 (ITAT-DELHI)
Without prejudice to the ground no. 1 above and on the fact and circumstances of the case, the Ld. CIT(A) has erred in confirming the addition of Rs. 3,82,55,045/- upholding the addition done by the Sales tax Authorities without any evidence in hand with the CIT(A) and in view of the fact that the Appellate Authorities in VAT have also set aside this addition with a direction for fresh assessment having regard to the fact that the factory premises have been sealed by the Sales Tax Authorities and the assessee was left no option to produce the evidence.
Sec. 147 & 148 of Income Tax Act, 1961—Reassessment— Reasons recorded by the AO cannot be said to be proper to form a belief of escapement of income as the information so received was neither found well founded nor the AO made any efforts to make any verification or application of his mind on the same and the provisions of section 147 do not give unfettered powers to reopen the assessment and the AO is required to satisfy the pre-conditions as given in the said section, which is lacking in the present case -Issue of notice u/s. 143(2) is mandatory in the reassessment proceedings and its failure to do so, make the re-assessment as void - HARI STEELS & GENERAL INDUSTRIES LTD. V/s DEPUTY CIT - [2019] 75 ITR (TRIB) 090 (ITAT-DELHI)