Yogesh Kumar U.S. ORDER
Yogesh Kumar U.S., Member (J)
1. The present appeal is filed by the assessee, challenging the order dated 07/09/2018, passed by the learned CIT(Appeals)-28, New Delhi.
2. The assessee has filed 'NIL' income on 29/10/2007. The return was duly processed u/s. 143(1) of the Act, the case of the assessee has been taken up for scrutiny and assessment order u/s. 153A read with 143(3) of the Act dated 29/12/2011 was passed at income of Rs. 3,65,75,000/- by making disallowance on account of unexplained cash credits of Rs. 3,50,00,000/-, on account of commission of Rs. 1,75,000/- and on account of unsecured loan of Rs. 14,14,00,000/-. Later, the case was selected for scrutiny u/s. 147 read with Section 148 of the Act. The notice u/s. 148 of the Act was issued on 26/02/2014, the representative of the assessee has participated in the assessment proceedings. The assessment order came to be passed on 20/03/2015 by making addition of Rs. 45,00,000/- on account of unexplained income from share applicants. As against the assessment order dated 20/03/2015 passed u/s. 148 read with 147 of the I.T Act, the assessee has preferred an appeal before the CIT(A). The Ld. CIT(A) by order dated 07/09/2018, dismissed the appeal filed by the assessee.
3. Aggrieved by the order impugned dated 07/09/2018, the assessee has preferred the present appeal on following grounds:-
1. That learned CIT(A) has erred both in law and on facts in dismissing the appeal of the appellant without appreciating the legal contention of the appellant that the additions u/s. 153A are not valid in law the absence of any incriminating material found in the course of search proceedings on the appellant and the additions are based on the material available in the return of income and this legal issue is decided by the Hon'ble ITAT in favour of the appellant for the AY under consideration.
2. The reassessment proceedings and the order of assessment u/s. 147/148 is not sustainable in law as the same has been passed without disposing off the objection of the appellant and the Ld. CIT(A) has accepted the contrary claim of the AO without verifying the facts from the relevant records of the AO.
2.1 The reassessment proceedings are not validly initiated in view of the proviso to section 147 being applicable, the reassessment proceedings are barred by limitation in the absence of the allegation by the AO in the reason recorded that there was failure on the part of the appellant to disclose truly and fully all material facts in original proceedings which had bearing on the assessment of income.
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