INCOME TAX ACT, 1961

Section 147

Reassessment - Bogus accommodation entries receipts - Allegation of non-application of mind -

Assessee raised the primary ground is total non-application of mind while issuing the notice under section 148 and even while passing the order on objections. There was total non-application of mind even while filing the affidavit in reply by the same officer. Perhaps this officer does not know the meaning of the words 'application of mind' because he seems to be using this expression without applying his mind. The notice was issued under section 148 for assessment year 2015-16. The assessment had been completed under section 143(3). Therefore, proviso to section 147 shall apply and revenue would have to make out a case of failure on the part of assessee to truly and fully disclose material facts. Held: Objections filed by assessee to the notice issued under section 148 and also alleged lack of application of mind. Revenue while rejecting the objections first of all makes a false statement that 'the assessee's above submissions and objections have been carefully considered and the same are dealt with as under' but he did not deal with the objection of the assessee of lack of application of mind. Revenue was totally silent about the objections raised on non-application of mind. In the affidavit in reply, he says it was a typographical error and inadvertent mistake because in the case information received in insight portal, only first page was displayed. Even if it was accepted that what revenue said for a moment, still anyone reading the reason would realise that it defies sensibility that how the company will provide bogus entry to itself. Thus, reassessment proceedings were wholly without jurisdiction, illegal, arbitrary, and liable to be quashed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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