Case Law Details
Brief of the Case
ITAT Jaipur held In case of ACIT vs. Shri M.R. Seetharam that it is mandatory that Assessing Officer should furnish the copy of the reasons recorded for initiation of re-assessment proceedings under Section 147 exactly as it is recorded by the Assessing Officer. Mere assessee was aware of the reassessment proceedings or participated in reassessment proceedings will not make any difference regarding comply with the mandatory requirement of supply of copy of reasons. Non supply of reasons will be treated as violation of principal of natural justice and it will make the whole exercise of reassessment void.
Facts of the Case
The assessee, an individual engaged in real estate, filed his return for AY 2004-05 on 12.1.2005 declaring total income of Rs.5,68,81,556 and agricultural income of Rs.2,00,000. The return was processed under Section 143(1) and the case was taken up for scrutiny. The assessment was completed vide order dt.22.12.2006, wherein the income of the assessee was determined at Rs.6,74,73,557.
A search under Section 132 was conducted in the case of one Sri Sohanraj as well as M/s. Mehta Associates, Bangalore on 10.10.2009 wherein it was found that the assessee was a partner in the above firm, which was the sole C&F Agent of Manikchand Gutka for the State of Karnataka. As per information gathered in the search of the Sohanraj Group of cases, the assessee in the case on hand had received Rs.7,16,22,000 in cash from these parties. In this regard, the Assessing Officer initiated re-assessment proceedings under Section 147 in order to bring to tax in the assessee’s hands the amount of Rs.7,16,22,000 which had not been disclosed by the assessee and Notice under Section 148 was issued to the assessee on 31.3.2011 after obtaining the approval of the CIT. The Assessing Officer concluded the reassessment proceedings under Section 143(3) rws 147 of the Act vide order dt.30.12.2011 wherein the income of the assessee was determined at Rs.12,87,03,560; which included an addition of the said amount of Rs.7,16,22,000 under Section 69A /69.
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