Shri Radheshyam Mohanlal Maheshwari,, Ahmedabad v. The ACIT., Circle-2,, Ahmedabad

ITA 1052/AHD/2006 | 1998-1999
Pronouncement Date: 25-02-2010 | Result: Allowed

Appeal Details

RSA Number 105220514 RSA 2006
Assessee PAN AFJPM1132M
Bench Ahmedabad
Appeal Number ITA 1052/AHD/2006
Duration Of Justice 3 year(s) 9 month(s) 24 day(s)
Appellant Shri Radheshyam Mohanlal Maheshwari,, Ahmedabad
Respondent The ACIT., Circle-2,, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 25-02-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 25-02-2010
Date Of Final Hearing 25-02-2010
Next Hearing Date 25-02-2010
Assessment Year 1998-1999
Appeal Filed On 01-05-2006
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH AHMEDABAD (BEFORE S/ SHRI BHAVNESH SAINI JM AND A. N.PAHUJA AM) ITA NOA.833 AND 834/AHD/2006 A. Y.: 2000-01 AND 2001-02 THE A. C. I.T. CIRCLE-2 2 ND FLOOR INSURANCE BUILDING ASHRAM ROAD AHMEDABAD VS SHRI RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 164/3 KABUTARKHANA KALUPUR AHMEDABAD PA NO. AFJPM 1132M (APPELLANT) (RESPONDENT) ITA NOS. 1052 1053 1054 AND 1055/AHD/2006 A. Y.: 1998-99 1999-200 2000-01 AND 2001-02 SHRI RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 164/3 KABUTARKHANA KALUPUR AHMEDABAD PA NO. AFJPM 1132M VS THE A. C. I.T. CIRCLE-2 2 ND FLOOR INSURANCE BUILDING ASHRAM ROAD AHMEDABAD (APPELLANT) (RESPONDENT) DEPARTMENT BY SMT. NEETA SHAH DR ASSESSEE BY SHRI A. C. SHAH AR O R D E R PER BENCH: ALL THE CROSS APPEALS ARE DIRECTED AGAINST DIFFER ENT ORDERS OF THE LEARNED CIT(A)-VI AHMEDABAD DATED 27 -02-2006 FOR ASSESSMENT YEARS 1998-99. 1999-2000 2000-01 AND 20 01-02. 2. IN ALL THE APPEALS OF THE ASSESSEE THE INITIATIO N OF RE-ASSESSMENT PROCEEDINGS U/S 147 OF THE IT ACT HAVE BEEN CHALLEN GED ALONG WITH THE ADDITIONS ON MERITS ON ACCOUNT OF BOGUS PURCHASES CASH CREDIT PART GP ADDITION AND OTHER DISALLOWANCES OF THE EXPENDITURE . IN THE DEPARTMENTAL IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 2 APPEALS THE REVENUE CHALLENGED THE DELETION OF ADD ITIONS ON ACCOUNT OF BOGUS PURCHASES AND REDUCING THE ADDITION BY APPLYI NG GP RATE OF 20%. 3. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BOT H THE PARTIES PERUSED THE FINDINGS OF THE AUTHORITIES BELOW AND V ERY CAREFULLY CONSIDERED THE MATERIALS AVAILABLE ON RECORD. 4. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSE SSEE IS INDIVIDUAL DERIVES INCOME FROM DALALI AND COMMISSION. THE POLI CE AUTHORITIES AT AJMER HAD SEIZED CASH OF RS.6 65 000/- FROM ONE PER SON NAMED ASHOK KUMAR SON OF SHRI KEWAL RAM ON 05-11-2000. THE CAS H WAS REQUISITIONED BY THE DIT (INV.)-1 JODHPUR U/S 132( 2A) OF THE IT ACT. BEFORE THE POLICE AUTHORITIES SHRI ASHOK KUMAR CLA IMED THAT THIS CASH BELONG TO M/S. BALAJI TRADING CO. OF WHICH THE ASSE SSEE IS THE PROPRIETOR. THE STATEMENT OF SHRI RADHESHYAM MOHANLAL MAHESHWAR I I.E. THE ASSESSEE WAS RECORDED U/S 131 (1A) OF THE IT ACT ON 20-11-2000 WHEREIN HE ADMITTED THAT THE CASH SEIZED BY THE POLICE AUTH ORITIES AT AJMER REPRESENTS THE PROFIT OF HIS UNDISCLOSED BUSINESS I NCOME. BLOCK ASSESSMENT PROCEEDINGS WERE INITIATED AGAINST THE A SSESSEE IN WHICH THE ASSESSEE OFFERED THE CASH AS UNDISCLOSED INCOME. TH E AO IN THE BLOCK ASSESSMENT PROCEEDINGS FOUND PURCHASES OF THE ASSES SEE TO BE UNVERIFIABLE AND THE SOURCE OF THE INVESTMENT IN TH E PURCHASES HAVE NOT BEEN EXPLAINED. IN THE BLOCK ASSESSMENT PROCEEDINGS THE LEARNED CIT(A) DELETED THE ADDITION ON ACCOUNT OF BOGUS PURCHASES VIDE ORDER DATED 11-12-2003 BECAUSE IT WAS NOT THE SUBJECT MATTER OF THE BLOCK ASSESSMENT. THE LEARNED CIT(A) HOWEVER IN PARA 4.2 OF THE AFORESAID ORDER DATED 11-12-2003 DIRECTED THE AO TO REOPEN TH E ASSESSMENTS FOR ALL THE ABOVE ASSESSMENT YEARS UNDER APPEAL. HIS FI NDINGS IN PARA 4.2 IN THE AFORESAID ORDER ARE REPRODUCED AS UNDER: IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 3 4.2 THE ASSESSING OFFICER IS HOWEVER DIRECTED TO REOPEN THE ASSESSMENTS FOR THE A. YRS. 1998-99 1999-2000 2000-01 AND 2001-02 U/S. 147 AND CARRY OUT INVESTIGATION AS TO WHETHER THE PURCHASES SHOWN IN THESE ASSESSMENT YEA RS ARE GENUINE OR NOT TAKING IT AS A DIRECTION WITHIN THE MEANING OF SECTION 150(1). HE SHALL COMPLETE THE ASSESSMENTS U /S. 147 FOR THESE ASSESSMENT YEARS AS PER LAW AFTER GIVING REASONABLE OPPORTUNITY TO THE APPELLANT OF BEING HEARD. THE AS SESSMENTS FOR THESE ASSESSMENT YEARS SHALL BE COMPLETED BY TH E ASSESSING OFFICER UNDER THE GUIDANCE AND WITH THE A PPROVAL OF HIS RANGE JCIT. 5. THE REVENUE PREFERRED APPEAL AGAINST THE ABOVE O RDER OF THE LEARNED CIT(A) HOWEVER THE ITAT BENCH B AHMEDABA D IN IT(SS)A NO.38/AHD/2004 VIDE ORDER DATED 25-7-2008 DISMISSED THE APPEAL OF THE REVENUE. THE AO ON THE BASIS OF THE DIRECTIONS OF T HE LEARNED CIT(A) REOPENED THE ASSESSMENTS U/S 147 OF THE IT ACT FOR ALL THE ABOVE ASSESSMENT YEARS AND FRAMED THE ASSESSMENTS U/S 143 /147 OF THE IT ACT AND MADE THE ADDITIONS ON ACCOUNT OF BOGUS PURCHASE S CASH CREDITS DISALLOWANCES OF EXPENDITURE ETC. VIDE SEPARATE ASS ESSMENT ORDERS. THE REOPENING OF THE ASSESSMENT WAS CHALLENGED BEFORE T HE LEARNED CIT(A) ALONG WITH ADDITIONS ON MERIT. THE LEARNED CIT(A) N OTED THAT THE ASSESSEE HAS NOT PREFERRED ANY APPEAL AGAINST THE ORDER OF T HE LEARNED CIT(A) DATED 11-12-2003 AND HIS FINDINGS IN PARA 4.2 ARE N OT CHALLENGED. THEREFORE THE AO WAS FULLY JUSTIFIED IN REOPENING THE ASSESSMENTS. THE APPEAL OF THE ASSESSEE ON THE ISSUE OF REOPENING OF THE ASSESSMENTS WAS ACCORDINGLY DISMISSED. 6. THE LEARNED COUNSEL FOR THE ASSESSEE AT THE OUTS ET SUBMITTED THAT INITIATION OF THE REASSESSMENT PROCEEDINGS IN THE M ATTER IS CLEARLY UNJUSTIFIED. HE HAS REFERRED TO COPY OF THE REASONS FOR REOPENING OF THE ASSESSMENTS COPY OF WHICH IS FILED AT PAGE 7A OF T HE PAPER BOOK WHICH READS AS UNDER: REG: SHRI RADHESHYAM MOHANLAL MAHESHWARI IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 4 PROP: BALAJI TRADING CO. & MARUTI ENTERPRISES KALUPUR ABAD A.YS: 1998-99 1999-2000 2000-1 AND 2001-02 REASONS FOR REOPENING THE ASSESSMENTS U/S. 147 OF T HE ACT . THE CIT(A) AHMEDABAD IN APPEAL NO. CIT(A)-VI AC CIR.2/84/03-04 DATED 11-12-2003 HAS DIRECTED TO REO PEN THE ASSESSMENTS FOR AY. 1998-99 1999-2000 2000-01 AND 2001- 02 U/S 147 TO CARRY OUT INVESTIGATIONS AS TO WHETHE R THE PURCHASES SHOWN IN THESE ASSTT. YEARS ARE GENUINE O R NOT. ACCORDINGLY THE CASE IS REOPENED BY ISSUING NOTICE U/S 147 OF THE IT ACT. ISSUE NOTICES U/S 147 OF THE ACT FOR AYS 1998-99 1 999-2000 2000-01 AND 2001-02. DATE 5/2/04 S/D. R. R. MEENA DT 5/2/04 ASST. COMMISSIONER OF INCOME-TAX AHMEDABAD CIR-2 AHMEDABAD. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT SINCE THE LEARNED CIT(A) PASSED THE ORDER IN THE BLOCK ASSESSMENT ON 11-12-2003 THERE WAS NO OCCASION FOR THE ASSESSEE TO CHALLENGE THE R EOPENING OF THE ASSESSMENT WHICH WAS REOPENED VIDE REASONS DATED 05 -02-2004. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE AO IN THE REASONS HAS NOT SATISFIED THE CONDITIONS OF SECTION 147 FOR REOPENING OF THE ASSESSMENT. HE HAS RELIED UPON THE DECISION OF THE HONBLE MADRAS HIGH COURT IN THE CASE OF CIT VS V. JAYARAMAN 207 I TR 1038 (MAD.) IN WHICH IT WAS HELD THAT REASSESSMENT MADE U/S 147(A ) IN CONSEQUENCE OF OR TO GIVE EFFECT TO ANY FINDING OR DIRECTION CONTA INED IN AN ORDER PASSED U9/S 250 OF THE IT ACT INGREDIENTS OF SECTION 147( A) MUST BE SATISFIED. HE HAS ALSO RELIED UPON THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT VS KELVINATOR OF INDIA LTD. 320 ITR 561 (SC) IN WHICH THE IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 5 HONBLE SUPREME COURT HELD THAT AFTER THE AMENDMEN T THE AO HAS TO HAVE REASONS TO BELIEVE THAT INCOME HAS ESCAPED ASS ESSMENT HAS TO BE RECORDED IN WRITING. THE LEARNED COUNSEL FOR THE A SSESSEE SUBMITTED THAT SINCE IN THE CASE OF THE ASSESSEE THE AO MERELY AC TED ON THE DIRECTION OF THE LEARNED CIT(A) DATED 11-12-2003 AND HAS NOT REC ORDED IN THE REASONS THAT INCOME ESCAPED ASSESSMENT THESE ARE THE FIT C ASES FOR QUASHING OF THE INITIATION OF THE REASSESSMENT PROCEEDINGS U/S 147 OF THE IT ACT. 7. ON THE OTHER HAND THE LEARNED DR RELIED UPON TH E ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT SINCE THE DIRE CTION OF THE LEARNED CIT(A) IN THE BLOCK ASSESSMENT ORDER DATED 11-12-20 03 HAS NOT BEEN CHALLENGED BY THE ASSESSEE THEREFORE THE AO WAS J USTIFIED INITIATING REASSESSMENT PROCEEDINGS U/S 147 OF THE IT ACT. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND THE MATERIAL AVAILABLE ON RECORD. SECTION 147 OF THE IT ACT PROV IDES AS UNDER: [ INCOME ESCAPING ASSESSMENT. 147. IF THE [ASSESSING] OFFICER [HAS REASON TO BELIEVE] THAT ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR ANY ASSESSMENT YEAR HE MAY SUBJECT TO THE PROVISIONS OF SECTIONS 148 TO 153 ASSESS OR REASSESS SUCH INCOME AND ALSO ANY OTHER INCOME CHARGEABLE TO TAX WHICH HAS ESCAPED ASSESSMENT AND WHICH COMES TO HIS NOTICE SUBSEQUENTLY IN THE COURSE OF THE PRO CEEDINGS UNDER THIS SECTION OR RECOMPUTE THE LOSS OR THE DEPRECIATION ALLOWANCE OR ANY OTHER ALLOWANCE AS THE CASE MAY BE FOR THE ASSESS MENT YEAR CONCERNED (HEREAFTER IN THIS SECTION AND IN SECTION S 148 TO 153 REFERRED TO AS THE RELEVANT ASSESSMENT YEAR) : PROVIDED THAT WHERE AN ASSESSMENT UNDER SUB-SECTION (3) OF SECTION 143 OR THIS SECTION HAS BEEN MADE FOR THE RELEVANT ASS ESSMENT YEAR NO ACTION SHALL BE TAKEN UNDER THIS SECTION A FTER THE EXPIRY OF FOUR YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR UNLESS ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR SUCH ASSESSMENT YEAR BY REASON OF THE FAILURE ON THE PART OF THE ASSESSEE TO MAKE A RETURN UNDER SECTION 139 OR IN RESPONSE TO A NOTICE ISSUED UNDER SUB-SECTION (1) OF SECTION 142 OR SECTION 148 OR TO DISCLOSE FULLY IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 6 AND TRULY ALL MATERIAL FACTS NECESSARY FOR HIS ASSESSMENT FOR THAT ASSESSMENT YEAR: [ PROVIDED FURTHER THAT THE ASSESSING OFFICER MAY ASSESS OR REASSESS SUCH INCOME OTHER THAN THE INCOME INVOLVI NG MATTERS WHICH ARE THE SUBJECT MATTERS OF ANY APPEAL REFERENCE OR REVISION WHICH IS CHARGEABLE TO TAX AND HAS ESCAPED ASSESSMENT.] EXPLANATION 1.PRODUCTION BEFORE THE ASSESSING OFF ICER OF ACCOUNT BOOKS OR OTHER EVIDENCE FROM WHICH MATERIAL EVIDENC E COULD WITH DUE DILIGENCE HAVE BEEN DISCOVERED BY THE ASSESSING OFF ICER WILL NOT NECESSARILY AMOUNT TO DISCLOSURE WITHIN THE MEANING OF THE FOREGOING PROVISO. EXPLANATION 2.FOR THE PURPOSES OF THIS SECTION T HE FOLLOWING SHALL ALSO BE DEEMED TO BE CASES WHERE INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT NAMELY: (A) WHERE NO RETURN OF INCOME HAS BEEN FURNISHED BY THE ASSESSEE ALTHOUGH HIS TOTAL INCOME OR THE TOTAL INC OME OF ANY OTHER PERSON IN RESPECT OF WHICH HE IS ASSESSABLE UNDER T HIS ACT DURING THE PREVIOUS YEAR EXCEEDED THE MAXIMUM AMOUNT WHICH IS NOT CHARGEABLE TO INCOME-TAX ; (B) WHERE A RETURN OF INCOME HAS BEEN FURNISHED BY THE ASSESSEE BUT NO ASSESSMENT HAS BEEN MADE AND IT IS NOTICED B Y THE ASSESSING OFFICER THAT THE ASSESSEE HAS UNDERSTATED THE INCOME OR HAS CLAIMED EXCESSIVE LOSS DEDUCTION ALLOWANCE OR RELIEF IN THE RETURN ; (C) WHERE AN ASSESSMENT HAS BEEN MADE BUT (I) INCOME CHARGEABLE TO TAX HAS BEEN UNDERASSESSE D ; OR (II) SUCH INCOME HAS BEEN ASSESSED AT TOO LOW A RA TE ; OR (III) SUCH INCOME HAS BEEN MADE THE SUBJECT OF EXC ESSIVE RELIEF UNDER THIS ACT ; OR (IV) EXCESSIVE LOSS OR DEPRECIATION ALLOWANCE OR A NY OTHER ALLOWANCE UNDER THIS ACT HAS BEEN COMPUTED.] [ EXPLANATION 3. FOR THE PURPOSE OF ASSESSMENT OR REASSESSMENT UNDER THIS SECTION THE ASSESSING OFFICER MAY ASSES S OR REASSESS THE INCOME IN RESPECT OF ANY ISSUE WHICH HAS ESCAPED A SSESSMENT AND SUCH ISSUE COMES TO HIS NOTICE SUBSEQUENTLY IN THE COURSE OF THE IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 7 PROCEEDINGS UNDER THIS SECTION NOTWITHSTANDING THA T THE REASONS FOR SUCH ISSUE HAVE NOT BEEN INCLUDED IN THE REASONS RE CORDED UNDER SUB-SECTION (2) OF SECTION 148 . ] 8.1 SECTION 148(2) OF THE IT ACT PROVIDES THAT THE AO SHALL BEFORE ISSUING ANY NOTICE UNDER THIS SECTION RECORD HIS RE ASONS FOR DOING SO. FOR REOPENING OF THE ASSESSMENT U/S 147 OF THE IT ACT I T WAS THEREFORE IMPERATIVE FOR THE AO THAT HE SHOULD HAVE REASON TO BELIEVE THAT ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR ANY ASSESSMENT YEAR. SUCH FACTS SHOULD ALSO BE RECORDED IN THE REA SONS FOR REOPENING OF THE ASSESSMENT. IN THE PRESENT CASES THE LEARNED C IT(A) VIDE ORDER DATED 11-12-2003 WHILE DELETING THE ADDITION IN THE BLOCK ASSESSMENT FOR BOGUS PURCHASE DIRECTED THE AO TO REOPEN THE ASSESSMENTS FOR ALL THE ABOVE ASSESSMENT YEARS AND TO CARRY OUT INVESTIGATION AS TO WHETHER THE PURCHASES SHOWN IN THESE ASSESSMENT YEARS ARE GENUI NE OR NOT. THE AO ALSO REPRODUCED THE SAME DIRECTIONS IN THE REASONS RECORDED FOR REOPENING OF THE ASSESSMENTS. THE HONBLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF VIPAN KHANNA V. COMMISSIONER OF INCO ME-TAX [2002] 255 ITR 220 (P&H) AND IN THE CASE OF AMARENDRA SINGH 26 9 ITR 378 (P&H) HELD THAT REOPENING OF THE ASSESSMENT IS NOT VALID FOR MAKING GENERAL ENQUIRIES. HONBLE MADRAS HIGH COURT ALSO IN THE C ASE OF V. JAYARAMAN (SUPRA) HELD THAT EVEN IF EFFECT IS GIVEN TO THE O RDERS U/S 250 FOR REASSESSMENT THE INGREDIENTS OF SECTION 147 MUST B E SATISFIED. THE HONBLE SUPREME COURT IN THE CASE OF KELVINATOR OF INDIA LTD. (SUPRA) ALSO HELD THAT AFTER AMENDMENT IN 1989 ONLY ONE CONDITI ON REMAINS VIZ THAT REASONS TO BELIEVE THAT INCOME HAS ESCAPED ASSESSM ENT HAS TO BE RECORDED IN WRITING. THE CRUX OF THE MATTER WOULD BE THAT THE INGREDIENTS OF SECTION 147 OF THE IT ACT SHALL HAVE TO BE FULFILLED WHILE RECORDING REASONS FOR INITIATION OF REOPENING OF TH E ASSESSMENT. THE REASONS FOR REOPENING OF THE ASSESSMENTS ARE REPROD UCED ABOVE IN WHICH THE AO MERELY REOPENED THE ASSESSMENTS WITHOUT RECO RDING ANY FACT THAT IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 8 HE HAS REASONS TO BELIEVE THAT INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT. THE AO THUS DID NOT FULFILL THE INGREDI ENTS OF SECTION 147OF THE IT ACT WHILE RECORDING THE REASONS FOR THE SAME . THE AO WANTED TO INVESTIGATE ABOUT THE GENUINENESS OF THE PURCHASES BY MAKING GENERAL INQUIRIES IN THE MATTER WHICH IS ALSO NOT PERMISSIB LE UNDER THE LAW. THE HONBLE SUPREME COURT IN THE RECENT DECISION IN THE CASE OF GREEN WORLD CORPORATION 314 ITR 81 HELD THAT ORDER PASSED BY T HE AO AT THE DICTATE OF CIT IS NULLITY. HONBLE RAJASTHAN HIGH COURT IN THE CASE OF SHREE RAJ SYNTEX LTD. 313 ITR 231 (RAJ.) HELD THAT INITIATIO N BASED ON OPINION OF AO OF OTHER PARTY I.E. LESSEE IS BORROWED SATISFAC TION NOT SUFFICIENT REASON TO BELIEVE ESCAPEMENT OF INCOME. 9. WE MAY ALSO ADD HERE THAT REOPENING OF THE ASSES SMENT U/S 147 OF THE IT ACT AS PER ITS PLAIN LANGUAGE PROVIDED IN TH E ACT PROVIDES PREROGATIVE TO THE AO TO REOPEN THE ASSESSMENT IF T HE AO HAS REASON TO BELIEVE THAT ANY INCOME CHARGEABLE TO TAX HAS ESCAP ED ASSESSMENT FOR ANY ASSESSMENT YEAR. EVEN IF THE LEARNED CIT(A) HAS ISSUED A DIRECTION IN THE APPELLATE ORDER DATED 11-12-2003 TO REOPEN THE ASSESSMENTS IT IS THE PREROGATIVE OF THE AO TO REOPEN THE ASSESSMENT BY S ATISFYING THE REQUIREMENTS OF THE LAW AS MENTIONED ABOVE AND SHAL L HAVE TO RECORD IN WRITING THE REASONS TO BELIEVE THAT ANY INCOME CH ARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR ANY ASSESSMENT YEAR. HOWEVER THE REASONS RECORDED BY THE AO IN ALL THE ABOVE CASES DO NOT FI ND MENTION SUCH FACTS AND THE SATISFACTION OF THE AO FOR ESCAPEMENT OF TH E INCOME. IN THE ABSENCE OF THE FULFILLMENT OF THE REQUIREMENTS OF S ECTION 147 OF THE IT ACT FOR INITIATION OF THE REASSESSMENT PROCEEDINGS IN T HE ABOVE CASES WE ARE OF THE VIEW THAT THE AO INSTEAD OF COMPLYING WITH T HE REQUIREMENTS OF LAW MERELY WAS SWAYED BY THE DIRECTION OF THE LEARNED C IT(A) IN THE APPELLATE ORDER DATED 11-12-2003. CONSIDERING THE ABOVE DISCU SSIONS WE ARE OF THE VIEW THAT THESE ARE NOT THE FIT CASES FOR INITI ATION OF THE REASSESSMENT PROCEEDINGS BECAUSE THE AO FAILED TO MAKE OUT A CAS E WITHIN THE FOUR IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 9 CORNERS OF THE PROVISIONS OF SECTION 147 OF THE IT ACT. WE MAY ALSO NOTE THAT SINCE THE REOPENING OF THE ASSESSMENTS WOULD H AVE BEEN DONE BY RECORDING THE REASONS ONLY BY THE AO THEREFORE TH ERE WAS NO REASON FOR THE ASSESSEE TO HAVE CHALLENGED THE FINDINGS OF THE LEARNED CIT(A) IN THE APPELLATE ORDER DATED 11-12-2003 BECAUSE ULTIMATELY THE APPEAL WAS DECIDED IN FAVOUR OF THE ASSESSEE ON MERITS FOR THE BLOCK ASSESSMENT MATTER. 10. IN VIEW OF THE ABOVE WE SET ASIDE THE ORDERS O F THE AUTHORITIES BELOW AND QUASH THE REASSESSMENT PROCEEDINGS U/S 14 7 OF THE IT ACT IN ALL THE ASSESSMENT YEARS. AS A RESULT ALL THE APPE ALS OF THE ASSESSEE ON THIS GROUND ARE ALLOWED. 10.1 IN VIEW OF THE ABOVE FINDINGS AND THE FACT THA T REASSESSMENT PROCEEDINGS HAVE BEEN QUASHED IT RESULTED INTO DEL ETION OF THE ENTIRE ADDITIONS. THEREFORE THERE IS NO NEED TO CONSIDER AND DECIDE THE REMAINING GROUNDS ON MERIT IN ALL THE APPEALS OF TH E ASSESSEE AS WELL AS IN BOTH THE APPEALS OF THE REVENUE BECAUSE THE SAM E WOULD BE ACADEMIC INTEREST ONLY. 11. AS A RESULT ALL THE APPEALS OF THE ASSESSEE AR E ALLOWED AND BOTH THE DEPARTMENTAL APPEALS ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF THE HEARING ITSELF ON 25-02-2010 SD/- SD/- (A. N. PAHUJA) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 25-02-2010 LAKSHMIKANT/- IN ITA NOS.833 834 1052 1053 1054 AND 1055/AHD/ 06 RADHESHYAM MOHANLAL MAHESHWARI PROP. M/S. BALAJI TRADING CO. 10 COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR ITAT AHMEDABAD 6. GUARD FILE BY ORDER D Y. REGISTRAR ITAT AHMEDABAD