- (1.) HAVING heard learned counsel for the parties in this appeal under Section 260A of the Income Tax Act, 1961 (Act, for short), which pertains to the assessment year 2001-02, we formulate the following substantial question of law:- "Whether the Income Tax Appellate Tribunal was right in quashing the proceedings under Section 147/148 of the Act on the ground that the jurisdictional pre conditions are not satisfied?"
(2.) AS we have heard learned counsel for the parties, we proceed to pronounce our decision on the aforesaid substantial question of law. The respondent-assessee is a company and for the assessment year in question, an assessment order under Section 143(3) of the Act was passed on 24th January, 2003. The Assessing Officer while passing the said assessment order had recorded as under:- "From the perusal of the balance sheet, it is seen that an addition of Rs.30,00,000/- has been made to its share capital during the year under consideration. Apart from the above, the company has also raised loan and advances from Rs.21,91,288/- to Rs.85,70,860/- in order to verify the genuineness of these transactions made by the assessee company for the above year, the A.R. vide order sheet dated 22.11.2002 was requested to furnish documentary evidence to this regard. Necessary confirmations alongwith the copy of documents have been filed by the A.R. in respect of the above transactions made, which have been examined and placed on record. Expenses debited to P and L A/c have also been test checked from the books of accounts produced."
(3.) SUBSEQUENTLY , the Assessing Officer vide reasons recorded on 24th August, 2006, issued a re- assessment notice under Section 148 of the Act. For the sake of convenience, the "reasons to believe" recorded by the Assessing Officer are reproduced below:- "Addl. CIT, Range 10, New Delhi has forwarded a letter dated 19.07.2006 with CIT, Delhi-IV New Delhi letter N.CIT-IV/S &S/200/07/814 dated 28.06.2006 enclosing a list of accommodations entry and beneficiaries pertaining of assessee's of range-10 of New Delhi charge with direction to the AO to Act upon immediately. The name and other particulars of the above said Assessee are as under:- JUDGEMENT_5229_ILRDLH22_2012img1.jpg These transaction pertains to the period for the F.Y. 2000-01 relevant Assessment Year 2001-02. Assessment for the Assessment year was completed u/s 143(3) on 24.01.2003 on an income of Rs.247203 and the period falls beyond four year, in which the AO cannot issue notice u/s 147/148 of the Income Tax Act, 1961 of his/her own without the approval of higher authorities. After verifying the assessment records, the information received from the DG (Inv.) through CIT, Delhi-IV New Delhi I have reason to believe that the assessable income has escaped the assessment to the tune of Rs.23,41,827/- and action is required to be taken under the provisions of section 147/148 of the Income Tax Act, 1961. Necessary approval for the issue u/s 148 may pleased be accorded" (emphasis supplied) ;