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2016 (2) TMI 224 - AT - Income TaxReopening of assessment - information conveyed by DIT - undisclosed share capital received - Held that:- As there is no rebuttal from the side of Revenue of the assessee’s contention that the share capital received by the assessee company of ₹ 48,00,000/- received from the shareholders was duly disclosed in the return of income and books of account which were duly examined by the AO at the time of original assessment proceedings. The balance sheet of assessee placed before us at page 6 of the paper book clearly shows the receipt of ₹ 48,00,000/- as share capital money for 960 Equity Shares of ₹ 1000/- each – ₹ 500/- per share called and paid up. The assessee had shown total receipts in its hands at ₹ 51.30 lacs which consists of ₹ 48 lacs as share capital, ₹ 1.5 lacs as Rent, ₹ 91,608 as interest and ₹ 86,215 as sale of agricultural produce, which all stood accepted by the AO u/s. 143(3) of the Act. The ld. DR failed to adduce any tangible material to show that a sum of ₹ 62 lacs represented unaccounted money rotated through Shri Surender Kumar Jain group of cases. Therefore, mere information conveyed by DIT does not constitute to be a tangible material to re-assess the assessee company without any independent enquiry or application of mind. In presence of all these facts, we are of the considered opinion that the action initiated against the assessee u/s. 147 is not legally valid and is liable to be quashed - Decided in favour of assessee
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