Sonal Arpit Doshi, Ahmedabad V. The Income Tax Officer, Ward-10(4), Ahmedabad

ITA 366/AHD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94550 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 19-10-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 19-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L CHANDEL
• Keywords: Reopening of assessment; Competent authority
• Section: 147; 131; 148

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI KUL BHARAT, JUDICIAL MEMBER ./ ITA NO. 366/AHD/2015 / ASSESSMENT YEAR: 2006-07 SONAL ARPIT DOSHI, 5/A, VAISHALI APARTMENT, 43, PRITAMNAGAR, ELLISBRIDGE, AHMEDABAD PAN : AIHPD 3959 L VS. THE INCOME TAX OFFICER, WARD-10(4), AHMEDABAD / (APPELLANT) / (RESPONDENT) ASSESSEE BY : SHRI SAKAR SHARMA, AR REVENUE BY : SHRI S.L. CHANDEL, SR. DR. / DATE OF HEARING : 19/10/2015 / DATE OF PRONOUNCEMENT: 21/10/2015 / O R D E R PER G.D. AGRAWAL, VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS), AHMED ABAD-5 DATED 12.01.2015 FOR ASSESSMENT YEAR 2006-07. 2. THE FIRST GROUND OF THE ASSESSEES APPEAL READS AS UNDER: THE LD. CIT(A) ERRED ON FACTS AND IN LAW IN CONFI RMING ACTION OF ASSESSING OFFICER IN ISSUING NOTICE U/S 148 AND IN MAKING ASSESSMENT U/S 147 OF THE ACT. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED BEFORE US. THE COPY OF REASONS RECORDED FOR RE-OPEN ING OF ASSESSMENT IS AT PAGE NO.5 OF THE ASSESSEES PAPER-BOOK, WHICH READS AS UNDER: ITA NO. 366/AHD/2015 SONAL ARPIT DOSHI VS ITO AY 2006-07 2 NO. ITO. WD.-10(4)/REASON U/S 148/2013-14 DT. 26 .09.2013 TO SMT. SONAL ARPIT DOSHI, 5/A, VAISHALI APPARTMENT, 43, PRITAM NAGAR, ELLISBRIDGE, AHMEDABAD. MADAM, SUB: REASON OF REOPENING THE ASSESSMENT U/S. 148 O F THE IT ACT FOR THE A.Y. 2006-07 - REGARDING. *************** PLEASE REFER TO THE ABOVE. 2. IT IS TO INTIMATE THAT BEFORE RE-OPENING OF THE ASSESSMENT PROCEEDINGS FOR THE A.Y. 2006-07 IN YOUR CASE THE REASONS WERE RECORDED BY THE ASSESSING OFFICER IN WRITING AND THE CASE WAS RE-O PENED AFTER TAKING PRIOR APPROVAL OF THE COMPETENT AUTHORITY. HOWEVE R, CONSIDERING YOUR REQUEST, THE GIST OF; THE REASONS AS RECORDED BY TH E ASSESSING OFFICER REGARDING REOPENING THE CASE U/S. 148 OF THE IT. AC T IS MENTIONED HERE UNDER:- 'THE SEARCH & SEIZURE ACTION, CARRIED OUT BY THE DE PARTMENT ON 25.11.2009 IN THE GROUP CASE OF M/S. MAHASAGAR SEC URITIES LTD., AND ALSO COVERED ITS ALL GROUP COMPANIES WHICH WERE CONTROLLED BY SHRI MUKESH M. CHOKSI, AT MUMBAI. SHRI MUK ESH M. CHOKSI HIMSELF ADMITTED THAT MY ALL GROUP COMPANIE S ARE PROVIDING ENTRY FOR TAKING PROFIT OR LOSS BY SHOWIN G PURCHASE OR SALE OF THE SHARES AND SECURITIES TO VARIOUS PARTIE S ACROSS INDIA ON WHICH I WAS CHARGED CERTAIN COMMISSION FROM THE BEN EFICIARY PARTIES. THE SAME INFORMATION RECEIVED BY ; THIS OF FICE SUPPLIED BY THE DIRECTOR OF INCOME-TAX (I & C.I.), NEW DELHI, V IDE LETTER DATED 07.03.2013 ALONGWITH COPY OF STATEMENT O F SHRI MUKESH M. CHOKSHI RECORDED BY THE DEPARTMEN T ON OATH U/S. 131 OF THE I.T. ACT. ACCORDINGLY, ALL T HE PURCHASE AND SALE TRANSACTIONS REGARDING SHARES AND SECURITIES M ADE BY YOU THROUGH GROUP COMPANIES BELONGING TO SHRI MUKESH M. CHOKSHI WHICH WAS KNOWN AS MAHASAGAR SECURITIES LTD. WHICH IS TOTALLY UNVERIFIABLE TRANSACTION AS THE CONTROLLING PERSON NAMELY SHRI MUKESH M. CHOKSHI HIMSELF ADMITTED IN HIS STATEMEN T RECORDED ITA NO. 366/AHD/2015 SONAL ARPIT DOSHI VS ITO AY 2006-07 3 ON OATH U/S. 131 ON 16.01.2013 BY SHRI P. S. NAIK, CIT, CENTRAL- 46, MUMBAI RECORDED. ON DEEP SCRUTINIZED OF THE DAT A/DETAILS RECEIVED IN THIS OFFICE IT IS ASCERTAIN THAT YOU HA VE ALSO INVOLVED FOR TAKING UNVERIFIABLE/BOGUS BENEFICIAL ENTRIES FR OM THE GROUP COMPANIES BELONGS TO SHRI MUKESN CHOKSI DURING THE F.Y. 2005- 06. ACCORDINGLY, ALL THE TRANSACTIONS MADE BY YOU W ERE UNVERIFIABLE. HENCE, SAME TRANSACTIONS ALSO SHOULD BE REQUIRED FOR DETAILED VERIFICATION FROM VARIOUS ASPECTS FOR GENUINENESS OF THE SAID TRANSACTION AS PER THE INFORMATION SUPPLIE D BY THE DIRECTOR OF INCOME-TAX (I & C.I.), NEW DELHI IN YOU R CASE BY RE- ASSESSMENT'. 3. THE ABOVE REASONS ARE PROVIDED ON EXPRESS REQUES T MADE BY YOU VIDE ABOVE REFERRED APPLICATION. AS SUCH, YOUR APPLICATI ON STAND DISPOSED OFF, WHICH MAY PLEASE BE NOTED. YOURS FAITHFULLY, SD/- (R.N.MEENA) INCOME TAX OFFICE, WARD-10(4) AHMEDABAD 4. FROM THE ABOVE, IT IS EVIDENT THAT THE ASSESSING OFFICER HAS SIMPLY REOPENED THE ASSESSMENT FOR THE PURPOSE OF V ERIFICATION OF THE CERTAIN TRANSACTIONS. IN OUR OPINION, WHEN THE REV ENUE WANTED TO VERIFY THE CORRECTNESS OF CERTAIN TRANSACTIONS, THE PROPER COURSE IS TO ISSUE THE NOTICE U/S 143(2) WITHIN TIME. IF THE REV ENUE FAILED TO ISSUE NOTICE U/S 143(2), IT CANNOT RESORT TO SECTION 148 FOR THE PURPOSE OF VERIFICATION OF CERTAIN TRANSACTIONS. NOTICE U/S 1 48 CAN BE ISSUED ONLY WHEN THE ASSESSING OFFICER RECORDS HIS SATISFACTION WITH REGARD TO ESCAPEMENT OF INCOME. IN THE REASONS RECORDED, THE RE IS NO MENTION OF THE ESCAPEMENT OF INCOME; THEREFORE, IN OUR OPINION , REOPENING OF ASSESSMENT IS NOT VALID AND THE SAME IS QUASHED AND CONSEQUENTIALLY, THE ASSESSMENT ORDER PASSED IN PURSUANCE TO SUCH NO TICE IS ALSO QUASHED. ITA NO. 366/AHD/2015 SONAL ARPIT DOSHI VS ITO AY 2006-07 4 5. SINCE WE HAVE QUASHED THE ASSESSMENT ORDER, THE ADDITIONS MADE BY THE ASSESSING OFFICER IN THE SAID ASSESSMEN T ORDER WHICH ARE CHALLENGED ON MERIT IN THE ASSESSEES APPEAL DO NOT SURVIVE FOR ADJUDICATION, BECAUSE THE ASSESSMENT ITSELF HAS BEE N QUASHED. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 21 ST OCTOBER, 2015 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER (G.D. AGRAWAL) VICE-PRESIDENT AHMEDABAD; DATED 21/10/2015 BIJU T., PS !'#$#%! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. ! / THE RESPONDENT. 3. '# $ / CONCERNED CIT 4. $ ( ) / THE CIT(A) 5. '() # , # , ' / DR, ITAT, AHMEDABAD 6. ). / / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD