INCOME TAX ACT, 1961

Section 147

Reassessment - Reopening based on information emanated from investigation wing - No specific material in possession of AO to arrive at reason to believe -

AO received information from investigation wing as to certain parties including assessee received bogus accommodation entries from the respective parties. Accordingly, AO reopened assessment and made addition under section 68 treating share capital and share premium received by assessee as bogus. Held: Reasons recorded for reopening clearly specify that as per information available on record assessee received bogus accommodation entries, however, no such information/statement was cited in the reasons recorded that established any such material even existing with AO that alleged share capital and share premium received by assessee as bogus or represented assessee's own unacounted funds. Assumption of jurisdiction under section 147/148 was, therefore, illegal, rendering all subsequent proceedings to be non est.

Relied:Calcutta Discount v. ITO 1961 41 ITR 191(SC) : 1961 TaxPub(DT) 0130 (SC), ITO v, Lakmani Mewal Das. 1976 103 ITR 437 (SC) : 1976 TaxPub(DT) 0742 (SC), shoe Nath Singh v. AACIT. 1972 SCR (1) 175 (SC) : 197 TaxPub(DT) 0362 (SC), S. Narayanappa and Ors. v. CIT. Bangalore, AIR 1967 SC 523 : 1967 TaxPub(DT) 0198 (SC), Ganga Saran & Sons (P) Ltd. v. ITO, (1981) 130 ITR 1 (SC) : 1981 TaxPub(DT) 0952(SC), CIT v. Lucas TVS Ltd. (2001) 249 ITR 306 (SC) : 2001 TaxPub(DT) 0896 (SC) and CIT v. Kelvinator India Ltd. (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

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