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| The Tax Publishers2019 TaxPub(DT) 1661 (Bom-HC) : (2019) 262 TAXMAN 0418 INCOME TAX ACT, 1961
Section 148
Since no additional material was available with AO on the basis of which, he could have formed a belief that income chargeable to tax had escaped assessment and there was no failure on the part of assessee to disclose true and full material facts, therefore, notice issued under section 148 was not tenable.
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Reassessment - Notice issued beyond the period of four years - Deemed dividend addition under section 2(22)(e) -
AO issued notice for reopening under section 148 on the ground that assessee had received an amount as loan from a company in which a shareholder was having 16% voting rights and also was having substantial interest of more than 20% in the share capital of assessee-company. Further looking to the share structure of the two companies, such transaction would fall within the fold of section 2(22)(e) and assessee was liable to be taxed on deemed dividend to the extent of accumulated profits or loan received whichever is less Held: AO in the reasons recorded, had proceeded entirely on the material already brought on record, during original assessment. No additional material available with AO on the basis of which, he could have formed a belief that income chargeable to tax had escaped assessment. Assessee had annexed details of secured and unsecured loans, taken from various lenders, and one of which was the said company from whom a loan was shown to have been received. Therefore, it was not open for AO to issue notice under section 148.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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