Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 930 - AT - Income TaxReopening of assessment u/s 147 - undisclosed revenue receipt - assessee has not recognized the income in respect of receipt from from M/s Indu Project Limited which assessee had claimed was received against the work order - claim of assessee is that the payments which were made to M/s. Dingle Buildcon Pvt. Ltd. was part of execution of work order received from M/s Indu Project Ltd - HELD THAT:- Assessee claims that in the year under consideration no expenditure on account of job charges has been claimed and job charges have been taken is work in progress. As this fact is not disputed by the Revenue, in the present assessment year 2010-11 any disallowance u/s 37(1) of the Act is not justified and so does the reopening of assessment when the additions made for sum received from M/s Indu Project Ltd, has also not been allowed to be added in the year under consideration by the Tribunal, while upholding the deletion of addition made on that account by the Ld. AO. Even otherwise, the material on record suggests that Tax Authorities have heavily relied the statements of Shri Anil Aggarwal who is an alleged Entry Operator controlling the four tainted entities. The Statements are part of the assessment order itself and Ld. Counsel in the presence of ld. DR was able to canvass that in none of the statements no specific statement is made by these persons qua the assessee which may indicate that they were involved in showing bogus job work towards assessee. - There was no direct transaction of the assessee with the four tainted companies operated by Shri Anil Aggarwal. It can be appreciated that primarily on the basis of statements alone and no other corroborative evidence the Ld. AO has drawn the inferences without giving assessee an opportunity to cross examine the said persons, - In assessment order Ld. AO mentions notices issued to these four tainted companies were received unserved, then the onus was on the Ld. AO to have certainly give opportunity to cross examine Shri Anil Aggarwal, who was allegedly operating these tainted companies. The Bench is of considered view that AO had fallen in error in invoking the jurisdiction u/s 147/148 of the Act and otherwise the addition is not sustainable too - Decided in favour of assessee.
|