The Tax Publishers2020 TaxPub(DT) 1929 (Del-Trib)

INCOME TAX ACT, 1961

Section 147

Section 143 assessment was completed in respect of discount and rebate which was categorically inquired by AO during original assessment. All the details were before AO and after verification only the AO passed original assessment without giving any adverse finding to that effect ,therefore, reopening on the ground that assessee made false claim of discount passed on to the customers through self made vouchers and bearer cheques, was not valid.

Reassessment - Validity - Original assessment framed after proper enquiry as regards impugned issue -

AO reopened assessment under section 148 on the ground that assessee made false claim of discount passed on to the customers through self made vouchers and bearer cheques. Held: It was pertinent to note that Section 143 assessment was completed in respect of discount and rebate which was categorically inquired by AO during original assessment. All the details were before AO and after verification only AO passed original assessment order without giving any adverse finding to that effect. Also, bank statement was called for and information given by the bank to AO itself revealed that the transaction and payments were genuine payments in respect of discount and rebate. No doubt or suspicion arose from perusal of these documents. Merely creating a doubt about transaction did not suffice AO to reopen the case under section 148 . AO had to give proper reasons in case those documents were not at all produced in the original assessment itself. Reasons recorded by AO under section 148 were not complete and lacked in the context of invocation of Section 148 itself. Therefore, reopening itself was bad and hence, reassessment was bad in law.

REFERRED :

FAVOUR : in assessee's favour

A.Y. : 2005-06 & 2012-13

INCOME TAX ACT, 1961

Section 153A

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