| The Tax Publishers2022 TaxPub(DT) 0794 (Pat-Trib) : (2022) 093 ITR (Trib) 0419 Reassessment
Section 147, Proviso
AO after going through documents furnished by assessee and after conducting enquiry and after verification of the same did not find any infirmity in the documents/information filed by assessee in respect to the share application/capital/ premium collected and so AO being satisfied with the nature and source of the credit entries in the form of share capital and premium, passed reassessment order under section 153A/143(3) by Order dated 31-3-2016 wherein AO acknowledged that assessee had duly complied with the notices under sections 143(2) and 142(1) and filed replies along with documents to the requirements called for by detailed questionnaire asked by him. Accordingly, there was no failure on assessee's part to disclose fully and truly all material facts and, reopening beyond four years was hit by proviso to section 147 and was, therefore, set aside.
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Reassessment - Beyond four years - No failure to disclose fully and truly all material facts -
AO received investigation report that assessee was investigation report that assessee was infusing unaccounted fund from dubious sources through accommodation entry to it in the form of share capital/premium. Accordingly, AO reopened assessment after expiry of four years from the end of relevant assessment year and made addition under section 68. Held: Assessee during original assessment proceedings, filed plethora of documentary evidences such as Form for application of equity shares, Copy of Board resolution of the respective companies Income Tax acknowledgment copy Certificate of incorporation, Copy of bank statement duly marked, Copy of balance-sheet of the company showing the amount of shares shown in the audited balance-sheet assets side, Certificate of incorporation of Registrar of Companies of each share subscribing companies which shows that they are all registered companies under the Companies Act, and PANs of all the share subscribing companies, etc., to prove identity of the share subscribers, their respective creditworthiness and genuineness of the transaction in respect of share application and share premium. AO after going through the aforesaid documents after conducting enquiry and after verification of the same did not find any infirmity in the documents/information filed by assessee in respect to the share application/capital/premium collected and so AO being satisfied with the nature and source of the credit entries in the form of share capital and premium, passed reassessment order under section 153A/143(3) by Order, dated 31-3-2016 wherein AO acknowledged that assessee had duly complied with the notices under sections 143(2) and 142(1) and filed replies along with documents to the requirements called for by detailed questionnaire asked by him. Accordingly, there was no failure on assessee's part to disclose fully and truly all material facts and, reopening beyond four years was hit by proviso to section 147 and was, therefore, set aside.
Relied:Ganga Saran and Sons (P) Ltd. v. ITO (1981) 130 ITR 1 (SC) : 1981 TaxPub(DT) 952 (SC) and Phool Chand Bajrang Lal v. ITO (1993) 203 ITR 456 (SC) : 1993 TaxPub(DT) 1453 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
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