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| The Tax Publishers2020 TaxPub(DT) 0545 (Del-HC) INCOME TAX ACT, 1961
Section 148
Since Tribunal in order had specifically recorded that question of disallowance of interest paid in view of interest free loans and investment by way of share application money in sisters concerns was raised and examined by AO during the original assessment proceedings and the said findings of fact have not been challenged as perverse, therefore, order issued under section 148 did not require any interference.
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Reassessment - Validity - Reason to believe - Interest on borrowed capital from sister concerns
AO issued notice under section 148 to assessee on the reasons to believe that an amount was paid as interest on borrowed capital from sister concerns, as assessee had advanced interest free loan and made investment in the form of share application money in sister concerns. Tribunal quashed reassessment notice. Held: Tribunal in order had specifically recorded that question of disallowance of interest paid in view of interest free loans and investment by way of share application money in sisters concerns was raised and examined by AO during the original assessment proceedings. The said findings of fact have not been challenged as perverse or contrary to evidence and material on record. Therefore, order did not require any interference as it was in consonance with ratio and law laid down by Supreme Court in CIT v. Kelvinator of India Limited (2010) 187 Taxman 312 (SC) : 2010 TaxPub(DT) 1335 (SC).
REFERRED : CIT v. Kelvinator of India Ltd. (2010) 187 Taxman 312 (SC) : 2010 TaxPub(DT) 1335 (SC) CIT v. Usha International Ltd. (2012) 348 ITR 485 (Delhi) : 2012 TaxPub(DT) 2966 (Del-HC) Dy. CIT v. Bhartiya Urban Infrastructure & Land Development Co. (P.) Ltd [I.T.A. No.4772/Del/2014, dt. 22-3-2018]
FAVOUR : Directions issued
A.Y. :
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