Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (3) TMI 615 - BOMBAY HIGH COURT

2015 (3) TMI 615 - BOMBAY HIGH COURT - TMI - Reopening of assessment - source of ₹ 7.6 Crores remained unidentified - ITAT held the reopening invalid - Held that:- Tribunal has noticed the fact that during the regular assessment proceedings, detailed enquiries were made by the Assessing Officer leading to the order dated 27 February 2006 about the source of the capital introduced by various members of the respondent assessee. In fact the Assessing Officer has also prepared a note with rega .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

respondent assessee had not explained the source of its capital contribution to the extent of ₹ 6.20 Crores. This, the Tribunal found was factually incorrect as a report of the Additional DIT, Jaipur makes no mention of any explanation offered by the respondent assessee but the entire report is on the statement made by an individual and refers to his conduct. Consequently, the reasons recorded for issuing the impugned notice proceed on factually erroneous basis with the result that the liv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt : Mr A R Malhotra, Adv. For the Respondent : Ms Beena Pillai, Adv. ORDER P. C. This appeal by the revenue under Section 260A of the Income Tax Act, 1961 (the 'Act') is directed against the order dated 24 August 2012 passed by the Income Tax Appellate Tribunal (the 'Tribunal'). The impugned order has been passed in respect of the Assessment Year 2003-2004. 2. The appellant revenue has formulated following question of law for our consideration: "Whether on the facts and cir .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

respondent assessee in its return of income for the Assessment Year 2003-04 declared an income of ₹ 60 Lakhs. The Assessing Officer completed the assessment under Section 143(3) of the Act by an order dated 27 February 2006 determining the respondent assessee's total income of ₹ 72.65 Lakhs. 4. On 30 December 2008, the Assessing Officer issued a notice under Section 147/148 of the Act seeking to reopen the assessment for the Assessment Year 2003-04. The grounds recorded in suppor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed u/s 143(1) on 11.05.2004. Later the assessment was completed u/s 143(3) on 27.02.2006 at an amount of ₹ 72,65,805/-. During the course of investigation in respect of liquor contracts awarded by the Excise Department of Rajasthan, the ADIT (Inv)-1, Jaipur has come across the information that the above assessee AOP had paid ₹ 7.60 Crores to the State Excise Department as earnest money during the financial year 200203. During the course of enquiry by the ADIT (Inv)-1, Jaipur, the ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, 1961. Further I also believe that the assessee has failed to disclose all material facts necessary for assessment in respect of the amount deposited with the Excise Department." 5. The respondentassessee objected to the same. The objection was two fold - change of opinion and no reason to believe income chargeable to tax has escaped assessment. However the Assessing Officer rejected the objections and passed the assessment order dated 24 December 2009 under Section 143(3) r/w Section 147 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

interalia holding that during the regular assessment proceedings for the Assessment Year 2003-04 leading to the order dated 27 February 2006, the Assessing Officer made detailed enquiries regarding the capital contribution of the members to the respondent assessee AOP. In fact the order records that the Assessing Officer during the regular assessment proceedings has prepared an office note recording his enquiry to the capital contribution of the members and also the fact that deposit had been m .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

7; 1.40 Crores out of ₹ 7.60 Crores deposited with the State Excise Department, State of Rajasthan. Thus the note states that no explanation was forthcoming with regard to source of the balance amount of ₹ 6.20 Crores. However on examining the report of Addl. DIT, the Tribunal finds that there is no mention of failure to explain the source of ₹ 6.20 Crores by the respondent assessee, but the failure is of an individual to explain his source of deposit. Moreover, the Tribunal re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for reopening the assessment. 7. Mr. Malhotra, the learned Counsel appearing for revenue urges that the impugned order has completely ignored the fact that although the amount of ₹ 7.60 Crores was paid to the Excise Department, Rajasthan, in an earlier year, the same was reflected in the books of the respondent assessee only in the subject assessment year. Therefore the respondent assessee has to explain the source of the credit reflected in its books of account. 8. As pointed out above, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version