INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Reasons based on incriminating material found during course of search - Reliable and cogent evidences

During course of search and seizure operation in case of a party named 'S', it was found that assessee-company was one of the beneficiaries of accommodation entries provided by the 'S'. Therefore, on the basis of the material collected, AO concluded that he had reason to believe that income chargeable to tax had escaped assessment and accordingly, he issued notice under section 148 for reopening assessment in case of the assessee. Held: AO recorded reasons for reopening of assessment, which were based upon search and seizure action conducted in case of 'S' in which incriminating material was found concerning the assessee as well. Thus, reopening of the assessment was made by recording proper reasons. On perusal of such material, it was found that the assessee received accommodation entries. Therefore, reliable and cogent evidences were found during course of search and such information was genuine on which the AO formed his opinion for reopening of the assessment and hence, the reopening was valid.

Relied:The Pr. CIT-4 v. Geetanjali Credits and Capital Limited (2019) 411 ITR 338 (Del.) : 2019 TaxPub(DT) 1188 (Del-HC) Avirat Star Homes Venture Private Limited v. ITO 15 (1) (2) & Ors. (2019) 411 ITR 321 (Bom.) : 2018 TaxPub(DT) 8125 (Bom-HC) ITO, Ward-20 (3) New Delhi v. RMP Holding (P) Ltd. and Vice-Versa, M/s. R.N. Khemka Enterprises (P) Ltd., v. ITO, Ward-20 (3) New Delhi. [ITA No.6017/Del/2018, ITA No. 79/Del/2019, ITA No. 3299/Del/2017, ITA Nos. 584, 6016, 585/Del/2018, ITA Nos. 1029, 78/Del/2019, dt. 9-8-2019

REFERRED :

FAVOUR : Against the assessee

A.Y. :

INCOME TAX ACT, 1961

Section 68

SUBSCRIBE FOR FULL CONTENT