|The Tax Publishers2021 TaxPub(DT) 0653 (Del-Trib)
INCOME TAX ACT, 1961
Section 147, Proviso
As there was no failure on part of assessee to disclose fully and truly all material facts necessary for assessment, therefore, action under section 147 initiated after expiry of four years from end of the relevant assessment year, was clearly hit by first proviso to section 147 and, therefore, invalid.
Reassessment - Beyond four years - No failure to disclose fully and truly all material facts -
AO reopened assessment after expiry of four years from the end of relevant assessment year and made addition on account of unexplained share application money. Assessee took plea of proviso to section 147. Held: During original assessment proceeding AO called for details of share capital/share application money along with details, complete address, amount and income-tax particulars of investors which assessee filed before AO at original assessment stage along with confirmations of the investors, their bank statements, their income-tax returns and balance-sheets. AO examined details and after verification of the same, accepted explanation of assessee. Accordingly, there was no failure on part of assessee to disclose fully and truly all material facts necessary for assessment, and therefore, action under section 147 initiated after expiry of four years from end of the relevant assessment year, was clearly hit by first proviso to section 147. Therefore, reassessment was set aside. as invalid.
FAVOUR : In assessee's favour.
A.Y. : 2009-2010
IN THE ITAT, DELHI BENCH
BHAVNESH SAINI, J.M. & B.R.R. KUMAR, A.M.
Gaurang Products (P) Ltd. v. ITO
I.T.A. No. 5196/Del./2019
1 February, 2021
In favour of assessee.
Assessee by: Suresh K. Gupta, C. A.
Revenue by: Prakash Dubey, Sr. Departmental Representative
Bhavnesh Saini, J.M.
This appeal by Assessee has been directed against the Order of the learned Commissioner (Appeals)-35, New Delhi, dated 1-3-2019, for the assessment year 2009-2010, challenging the reopening of the assessment under section 143(3) read with section 147 of the Income Tax Act, 1961, and addition of Rs. 95 lakhs on account of unexplained share capital under section 68 of the Income Tax Act, 1961 and addition of Rs. 1,90,000 on account of Commission paid under section 69C of the Income Tax Act, 1961.
2. We have heard the learned Representatives of both the parties through video conferencing and perused the material on record.
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