ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Ltd.

ITO, New Delhi vs. M/S Care Traders Pvt. Ltd., New Delhi

In the result Revenue’s appeal as well as assessee’s Cross Objection both are dismissed

Bench: Shri J. Sudhakar Reddy & Ms. Suchitra Kamblea.Y. 2004-05

…opportunity to form an opinion on the return of income originally filed by the assessee as held in CIT Vs Gujarat Electricity Board [2003] 260 ITR 84 (SC), MTNL Vs. Chairman CBDT [2000] 246 ITR 84 (Delhi), ACIT Vs Rajesh Jhaveri Stock Brokers Pvt. Ltd. [2007] 291 ITR 500 (SC) and Rakesh Aggarwal Vs. ACIT [1997] 225 ITR 496 (Delhi.). Thus, there can be no quarrel that the notice u/s 148 was issued, per-se. 11. The issue which needs to be determined, at the very outset, is whether there was sufficient material and independent application of mind by the Ld. AO on the information received by him. Even though I have…

ACIT, New Delhi vs. M/S. Dma Investment (P) Ltd., New Delhi

In the result, all the 4 Appeals filed by the Assessee stand allowed and all the 4 Appeals filed by the Department stand dismissed

Bench: Shri N.K. Saini & Shri H.S. Sidhu

…urther stated that the case of the assessee is covered against the assessee by the decision dated 23.5.2007 of the Hon’ble Supreme Court of India in the case of ACIT vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd. in Appeal (Civil) No. 2830 of 2007 reported in 291 ITR 500 (SC). He further stated that in the case of CIT vs. Kabul Chawla (Supra) the assessment was completed u/s. 143(3) of the I.T. Act ITA NOS. 5688-5691 & 6326-6329/Del/2013 and not under section 143(1) of the I.T. Act, because on the date of search the said assessment has already been stood completed. 8. We have heard both the counsel and peruse…

M/S. Dma Investment Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the 4 Appeals filed by the Assessee stand allowed and all the 4 Appeals filed by the Department stand dismissed

Bench: Shri N.K. Saini & Shri H.S. Sidhu

…urther stated that the case of the assessee is covered against the assessee by the decision dated 23.5.2007 of the Hon’ble Supreme Court of India in the case of ACIT vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd. in Appeal (Civil) No. 2830 of 2007 reported in 291 ITR 500 (SC). He further stated that in the case of CIT vs. Kabul Chawla (Supra) the assessment was completed u/s. 143(3) of the I.T. Act ITA NOS. 5688-5691 & 6326-6329/Del/2013 and not under section 143(1) of the I.T. Act, because on the date of search the said assessment has already been stood completed. 8. We have heard both the counsel and peruse…

M/S Excellent Land Developers Pvt. Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…erial particulars would get supplemented, by the time the matter reaches to the court, on the strength of affidavit or oral submissions advanced.” [underlining is ours] 10. In Assistant Commissioner of Income Tax v. Rajesh Jhaveri Stock Brokers P. Ltd, [2007] 291 ITR 500 (SC), it has been ruled thus :- “Section 147authorises and permits the Assessing Officer to assess or reassess income chargeable to tax if he has reason to believe that income for any assessment year has escaped assessment. The word “reason” in the phrase “reason to believe” would mean cause or justification. If the Assessing Officer has cause o…

Smt. Chaya Sinha, New Delhi vs. ACIT, Faridabad

In the result the appeal of the assessee is allowed

Bench: Shria.T.Varkey & Shri Prashant Maharishi

…sessment order is passed when the return is merely processed under section 143(1) and an intimation to that effect is sent to the assessee. However, it has been recognised by the Supreme Court itself in Asst. CIT v. Rajesh Jhaveri Stock Brokers P. Ltd. [2007] 291 ITR 500 (SC), a decision that was relied upon by the Revenue, that even where proceedings under section 147 are sought to be taken with reference to an intimation framed earlier under section 143(1), the ingredients of section 147 have to be fulfilled ; the ingredient is that there should exist "reason to believe" that income chargeable to tax has escape…

M/S. Ganpati Associates, Meerut vs. ITO, Meerut

In the result the appeal of the assessee is allowed in terms of the pronouncement made at the time of hearing

Bench: Smt Diva Singh & Sh.O.P.Kant

…ing questions:- Questions:- (i) Whether the ITAT rightly upheld the initiation of proceedings u/s 147 of the Act in view of clause (b) of Explanation 2 to Section 147 following the decision of Apex Court in case of ACIT vs Rajesh Jhaveri Stock Brokers P. Ltd. 291 ITR 500 (SC) alone whereas the ITAT has failed to consider that requirement of Section 147 of the act was not fulfilled which is condition precedent for initiation of proceedings u/s 147/148 of the Act as held in case of Prashant S.Joshi vs ITO (2010) 324 ITR 154 (Bom.). (ii) Whether the ITAT was justified in adjudication the claim of loss of Rs.4,50,675…

ITO, New Delhi vs. Mr. Dinesh Bansal, Delhi

In the result, revenue’s appeal as well as assessee’s cross objection stand dismissed

Bench: Shri S.V. Mehrotra : & Ms. Suchitra Kamble :Asstt. Yr: 2005-06 Income Tax Officer, Vs. Mr. Dinesh Bansal, Ward 25(1), New Delhi. C/0 Krishan Lal Dinesh Kumar, 148B, G&Ju-Block, Pitampura, Delhi-110034. Pan: Agepb 8000 H & C.O. No. 108/Del/2014 ( In Ita No. 5744/Del/2013) Asstt. Yr: 2005-06 Mr. Dinesh Bansal, Vs. Income Tax Officer, C/0 Krishan Lal Dinesh Kumar, Ward 25(1), New Delhi. 148B, G&Ju-Block, Pitampura, Delhi-110034. ( Appellant ) (Respondent)

…n is required and it need not require detailed investigation regarding the involvement of an assessee in escapement of income. Reliance in this regard is placed on the decision of Hon'ble Apex court in the case of CIT vs: Rajesh Jhavari Stock Brokers (P) Ltd. 291 ITR 500(SC) wherein the Hon'ble Supreme Court held that in determining whether the commencement of the reassessment proceedings are valid, it is only to be seen that there was a prima facie some material on the basis of which the Department could reopen the case. The sufficiency/correctness of the material is not a thing to be considered at that stage. I…

ITO, New Delhi vs. Sh. Sanjay Chhabra, New Delhi

In the result, appeal of the department is dismissed

Bench: Sh. N. K. Saini, Am & Sh. Kuldip Singh, Jm Ita No. 895/Del/2012 : Asstt. Year : 2003-04 Income Tax Officer, Vs Sh. Sanjay Chhabra, Ward-19(1), Ac-119-B, Shalimar Bagh, New Delhi Delhi-110088 (Appellant) (Respondent) Pan No. Aiapb1656K Assessee By : Sh. Yogesh Kumar Jagia, Adv. Revenue By : Sh. Jemant Gupta, Jcit Dr Date Of Hearing : 23.11.2015 Date Of Pronouncement : 15.01.2016 Order Per N. K. Saini, Am:

…aching at a decision regarding commission of an offence of such type of transactions. 2 Sanjay Chhabra 2. Whether on the facts and circumstances of the case the Ld. CIT(A) has erred in ignoring the extracts of the judgments of the Hon’ble Supreme Court i.e. 291 ITR 500 (SC) (2007) and 191 ITR 662 (1991) which he himself quoted on Page-7 of but not the established fact of escapement of income. 3. The appellant craves leave to amend or alter all or any of the aforesaid ground of appeal and amend, alter or add any other ground of appeal.” 3. During the course of hearing, the ld. DR supported the order of the AO an…

DCIT, New Delhi vs. M/S. Dharampal Satyapal Ltd., Delhi

In the result, the appeal of the assessee is allowed and the appeal of the revenue is dismissed

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…or the Court to refer to a larger bench the question of the correctness of the decision in Orient Craft Ltd. which decision squarely applies to the facts of the present case. (Assistant Commissioner of Income Tax v. Rajesh Jhaveri Stock Brokers P. Ltd. (2007) 291 ITR 500 & Madhukar Khosla v. Assistant Commissioner of income Tax (2013) 354 1TR 356 referred).” 14. The ld. AR, Shri R.S. Singhvi assailed the decision of ld. CIT (A) by stating that the ld. CIT (A) erred in not appreciating the contentions raised before him in respect to the very legality of reopening of the original assessment which was carried out u…

M/S. Dharampal Satyapal Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed and the appeal of the revenue is dismissed

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…or the Court to refer to a larger bench the question of the correctness of the decision in Orient Craft Ltd. which decision squarely applies to the facts of the present case. (Assistant Commissioner of Income Tax v. Rajesh Jhaveri Stock Brokers P. Ltd. (2007) 291 ITR 500 & Madhukar Khosla v. Assistant Commissioner of income Tax (2013) 354 1TR 356 referred).” 14. The ld. AR, Shri R.S. Singhvi assailed the decision of ld. CIT (A) by stating that the ld. CIT (A) erred in not appreciating the contentions raised before him in respect to the very legality of reopening of the original assessment which was carried out u…

ACIT, New Delhi vs. Sh. Ram Bhaj Bansal, New Delhi

In the result, the appeal filed by the assessee stands allowed and that filed by the Revenue stands dismissed

Bench: Shri N.K. Saini & Smt. Beena A Pillai

…alid, the court had only to see the department could reopen the case. The sufficiency or correctness of the material is not a thing to be considered at that stage. “P- 2-Sh. Ram Bhaj Bansal – A.Y. 2006-07. b) ACIT vs. Rajesh Zaveri Stock Broker P. Ltd. (2007) 291 ITR 500 (SC) Section 147 authorizes and permits the Assessing Officer to assess or reassess income chargeable to tax if he has reason to believe that income for any assessment year has escaped assessment. The word “reason” in the phrase “reason to believe” would mean cause or justification. If the Assessing Officer has cause or justification to know or s…

Sh. Ram Bhaj Bansal, New Delhi vs. JCIT, New Delhi

In the result, the appeal filed by the assessee stands allowed and that filed by the Revenue stands dismissed

Bench: Shri N.K. Saini & Smt. Beena A Pillai

…alid, the court had only to see the department could reopen the case. The sufficiency or correctness of the material is not a thing to be considered at that stage. “P- 2-Sh. Ram Bhaj Bansal – A.Y. 2006-07. b) ACIT vs. Rajesh Zaveri Stock Broker P. Ltd. (2007) 291 ITR 500 (SC) Section 147 authorizes and permits the Assessing Officer to assess or reassess income chargeable to tax if he has reason to believe that income for any assessment year has escaped assessment. The word “reason” in the phrase “reason to believe” would mean cause or justification. If the Assessing Officer has cause or justification to know or s…

Commissioner of Income Tax vs. Visisth Chay Vyapar Ltd

…ave a live link with the formation of the belief.” 2015:DHC:9867-DB ITA Nos. 1108 of 2010 & 1109 of 2010 Page 13 of 20 27. In Assistant Commissioner of Income Tax v. Rajesh Jhaveri Stock Brokers Pvt. Ltd. 291 ITR 502, it was held: “16. Section 147 authorises and permits the Assessing Officer to assess or reassess income chargeable to tax if he has reason to believe that income for any assessment year has escaped assessment. The word "reason" in the phrase "reason to believe" would mean cause or justification. If the Assessing Officer has cause or justi…