Case Law Details
M/s Janani Infrastructure Pvt. Ltd. Vs ACIT (ITAT Banglore)
We have held that the sole basis of reopening of the assessment is the information received from the CBI. It is an undisputed fact that AO did not supply those materials to the assessee and also did not confront them with the assessee. Hence, we are of the view that there is clear violation of Principles of Natural Justice. It is well settled proposition of law that the assessing officer is not entitled to rely upon the materials, which were not confronted with the assessee. The decision rendered by Jaipur bench of Tribunal in the case of Smt. Sunita dhadda (supra) supports the case of the assessee on the above said ground. We have already noticed that the above said decision of the Tribunal has since been upheld by the Hon’ble Supreme Court in the very same case. Hence, on this ground alone, the additions made by the assessing officer in the hands of both the assessees in the years under consideration are liable to be deleted.
In the instant case, as noticed earlier, it is not the case of the assessing officer that the assessee did not furnish any of the details called for by him. Further, the assessing officer did not find any fault with the documents furnished by the assessee except some deficiencies in the application forms filed by the assessee, which are procedural mistakes. The AO also did not make any independent enquiry with the share applicants in order to find out the veracity of the submissions made by the assessee. Under these set of facts, it has to be presumed that the AO was satisfied with the details furnished by the assessee. Hence, we are of the view that the decision rendered by Hon’ble Supreme Court in the case of NRA Iron and Steel P Ltd shall not apply to the facts of the present case.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
All these appeals preferred by the respective assessees are directed against the orders passed by Ld CIT(A)- 11, Bangalore and they relate to the assessment years mentioned in the cause title against the name of each of the assessees. All these appeals were heard together and hence they are being disposed of by this common order, for the sake of convenience.
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