- (1.) The Court: The subject matter of challenge in this appeal is a judgment and order dated 12th June, 2013 by which the learned Tribunal affirmed the order of the CIT (Appeals) and dismissed the appeal preferred by the revenue. The facts and circumstances of the case briefly stated are as follows: Notices under section 148 of the Income-tax Act were issued seeking to reopen the assessment for the assessment years 2006-07 and 2007-08. The reasons recorded were as follows: "A.Yr. 2006-07: Information has been received that cash deposit of Rs. 36,15,000/- was made in Bank (maintained by the assessee company) account No. 848741 with ANB-AMRO Bank during the period 01.01.06 to 31.03.06. On verification of its accounts for the financial year 2005-06 relating the A.Y. 2006-07, it is found that (1) Rs. 99,379/- was received on account of interest during the relevant previous year (2) There was no fresh loan or capital received during the relevant previous year (3) There was no sale of shares. There was sale of investment to the tune of Rs. 5,51,420/- but cheque deposits were more than crore at different dates during the period. (4) There has been increase of cash-in-hand on comparison with the earlier year. All these does not justify the cash deposits of Rs. 36,15,000/- as well as cheque deposits at different dates in the said bank accounts during the relevant previous year. On the basis of the above, I have reason to believe that income has been escaped from assessment. Consequently, notice u/s. 148 is issued for the purpose of reassessment u/s. 147. A.Yr. 2007-08: Information has been received that cash deposit of Rs. 56,15,000/- was made in Bank (maintained by the assessee company) account No. 84888741 with ANB-AMRO Bank during the period 01.04.06 to 31.03.07. On verification of its accounts for the financial year 2006-07 relating the A.Y. 2007-08, it is found that (1) Rs. 1,71,161/- was received on account of interest during the relevant previous year (2). There was no fresh loan or capital received during the relevant previous year (3) There was no sale of shares. There was sale of investment to the tune of Rs. 5,51,420/- but cheque deposits were more than crore at different dates during the period. (4) There has been increase of cash-in-hand on comparison with the earlier year. All these does not justify the cash deposits of Rs. 36,15,000/- as well as cheque deposits more than crore at different dates in the said bank accounts during the relevant previous year. On the basis of the above, I have reason to believe that income has been escaped from assessment. Consequently, notice u/s. 148 is issued for the purpose of reassessment u/s. 147."
(2.) The Assessing Officer while passing his order under section 147/143(3) of the Income-tax Act observed, inter alia, as follows: "On being the receipt the notice u/s. 148, the reason for issuing 148 is served on 22.04.2010 to the assessee fixing the date of hearing on 10.05.2010. The Ld. A/R, A.K. Dudhewala appears on the day and requested for adjournment till 25.06.2010. On 25.06.2010, he is requested to furnish books of accounts with some details. The notice u/s. 133(6) were sent to different parties but the notice was returned with the post remark "Not known". On being informed, the Ld. A/R submitted fresh addresses of the companies and hearing was fixed on 13.11.2010. The Inspector was deputed to collect books, cash book, accounts etc. with notice u/s. 133(6) but Inspector reported that they could not produce any book. Consequently, summon u/s. 131 was served to the companies attend with books of accounts for A.Y. 2006-07 & 2007-08 on 16.12.2010 and 21.12.2010 but none appeared. As per books of the assessee, it was ascertained that following cash was received from different companies out of sale proceed of unquoted share.
(3.) It is not in dispute that identical observations were made by the Assessing Officer in respect of the assessment year 2007-08 made under section 147/143(3) of the Income-tax Act. Principally, on the basis of the aforesaid finding, total income was reassessed at a sum of Rs. 99,51,090/- for the assessment year 2006-07 and at a sum of Rs. 57,86,034/- for the assessment year 2007-08. Challenging the aforesaid orders, both passed on 28th December, 2010, the assessee preferred an appeal. The contention of the assessee was as follows: "All the parties to whom notices u/s. 133(6) were issued complied to the same and confirmed the transactions with the appellant company. The inspector also verified the transactions with their books of accounts. Thereafter, again the Income-tax Officer issued notices u/s. 131 asking for the same details as were asked for in the notices issued u/s. 133(6) of the Act. Once again all the companies furnished replies giving full details of the transactions with the Assessee company".;