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2021 (8) TMI 58 - AT - Income TaxReopening of assessment u/s 147 - protective addition and unexplained expenditure on account of brokerage - HELD THAT:- Amount mentioned in the income escaping assessment is incorrect, because only ₹ 4.63 crore was invested in Prakash Industries Ltd. during the relevant assessment year, and therefore, entire addition could not have been made u/s. 68 in this year. Another intriguing point is that protective addition was made in the hands of the appellant vide order dated 31.03.2015 even before the substantive addition was made in the hands of Prakash Industries Ltd. in order passed on 31.03.2016. Neither at the time of recording the reasons, nor at the time of framing the assessment, AO was’nt sure about whose income has escaped assessment. We do not find any reason to interefere with the findings of the CIT (A) that reopening for resorting to make protective assessment cannot be upheld - AO has also not even verified the records that the alleged escapement of income of ₹ 8.32 crore was received in this assessment year or not. Thus, there is a fallacy in the reasons recorded itself, and therefore, we uphold the order of ld. CIT (A) in quashing the order passed by the Assessing Officer u/s.147. - Appeal of the Revenue is dismissed.
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