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| The Tax Publishers2020 TaxPub(DT) 2294 (Guj-HC) INCOME TAX ACT, 1961
Section 147 read with Section 68
Where AO reopened assessment in case of assessee on allegation that assessee was a beneficiary of accommodation entries, considering that assumption of jurisdiction by AO under section 147, without there being any failure on part of assessee to disclose fully and truly all material facts, was without authority of law, re-opening of assessment was not justified.
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Reassessment - Validity - Allegation that assessee was a beneficiary of accommodation entries -
Assessee assailed validity of reassessment proceedings contending that same was sought to be done beyond a period of four years from end of relevant assessment year on ground that it was a beneficiary of entries of Rs. 50 lakhs from a transaction with two entry operators and their sister concerns. Held: In entire reasons recorded, there was not even a whisper regarding any failure on part of assessee to disclose fully and truly all material facts. Therefore, assumption of jurisdiction by AO under section 147, without there being any failure on part of assessee to disclose fully and truly all material facts, was without authority of law. Thus, by way of ad interim relief, further proceedings pursuant to notice seeking to reopen assessment in case of assessee were to be stayed.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE GUJARAT HIGH COURT
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