| |
| The Tax Publishers2020 TaxPub(DT) 2907 (Kol-Trib) : (2020) 079 ITR (Trib) 0705 INCOME TAX ACT, 1961
Section 147
Where assessee disclosed during course of original assessment proceedings details of all loan creditors showing that it paid interest on said loan and deducted tax at source and loan was repaid within same year, thus, it was wrong on part of AO to record his reasons that assessee failed to disclose fully and truly all material facts necessary for assessment.
|
Reassessment - Reason to believe - Allegation that loan amount was unexplained - Assessee produced details of all loan creditors during original assessment proceedings
Assessee-company was engaged in business of transportation of tea leaves. Its assessment was completed under section 143(3) and same stood re-opened under section 147 by issuing notice under section 148. While framing assessment AO made addition for unexplained loan amount taken by assessee. Held: Assessee disclosed during course of original assessment proceedings details of all loan creditors. It paid interest on said loan and deducted tax at source. The loan was repaid within same year. On such facts, it was wrong on part of AO to record his reasons that assessee failed to disclose fully and truly all material facts necessary for assessment. Merely alleging that there was failure to disclose, would not serve the purpose. In instant case, a factually wrong allegation was made that amount was not fully and truly disclosed. Re-opening of assessment on such wrong reasons, could not be upheld.
Followed:Haryana Acrylic Manufacturing Company v. CIT & Anr. (2009) 308 ITR 38 (Del) : 2009 TaxPub(DT) 1007 (Del-HC) Hindustan Lever Ltd. v. R.B. Wadkar (2004) 268 ITR 332 (Bom.) : 2004 TaxPub(DT) 1424 (Bom-HC) ICICI Bank Ltd. v. KJ. Rao & Anr. (2004) 268 ITR 203 (Bom.) : 2004 TaxPub(DT) 1372 (Bom-HC) DCIT v. Rohini Builders (2002) 256 ITR 360 (Guj) : 2002 TaxPub(DT) 0305 (Guj-HC) Orient Trading Co. Ltd. v. CIT (1963) 49 ITR 723(Bom) : 1963 TaxPub(DT) 0279 (Bom-HC)
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2011-12
INCOME TAX ACT, 1961
Section 254 Rule 34(5)
 SUBSCRIBE FOR FULL CONTENT
|