Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2019 (4) TMI 299

ice based on addition in subsequent year - addition deleted in appeal - no ‘information’ in possession of the AO specific to AY 1986-87 which could have formed the basis of the formation of his opinion that income had escaped assessment. - Held That:- It is not possible for this Court at a distance in time of three decades after the event, to be unmindful of the fact that for AY 1987-88, ultimately, there were no additions made to the income of the Assessee. If that was the only basis for reopening the assessment of AY 1986-87 it would be an entirely futile exercise for this Court to allow the reopening of the assessment for 1986-87 to remain. - this Court is satisfied that in the present case the jurisdictional requirement of Section 1 .....

X X X X X X X

Full Text of the Document

X X X X X X X

ecord, the Appellate Tribunal was right in law in upholding the assessment of the assessee-appellant company u/s 68 of the Income Tax Act, 1961, in its re-assessment to income tax u/s 147/148 of the Act for the assessment year 1986-87 on an amount of ₹ 75 lakhs, being the amount received by it from the subscribers to its additional share capital raised in its Rights issue during the relevant previous year, duly accounted for in its audit books and shown as such in the audited balance sheet of the said year, on the reasoning that the assessee company had failed to prove the identity of the share subscribers and their credit worthiness? 2. The background facts in brief are that for the AY in question i.e. 1986-87 the return filed by the .....

X X X X X X X

Full Text of the Document

X X X X X X X

hat income chargeable to tax amounting to ₹ 76,61,408 on account of the aforementioned three items had escaped assessment for assessment year 1986-87. 5. On the basis of the above reopening, a re-assessment order dated 27th March 1992 was passed by the AO adding the aforementioned amount to the returned income of the Assessee for AY 1986-87. Aggrieved by the above reassessment order, the Assessee filed an appeal before the Commissioner of Income Tax (Appeals) [ CIT (A)]. By an order dated 5th August 1992 the CIT (A) dismissed the Assessee s appeal affirming the reassessment order. Thereafter, the Assessee filed ITA 7484 of 1992 before the ITAT. By the impugned order dated 31st August 2000, the ITAT dismissed the appeal. 6. Mr. Inder P .....

X X X X X X X

Full Text of the Document

X X X X X X X

e such income has been made the subject of excessive relief under this Act or under the Indian Income-tax Act, 1922 (XI of 1922); or (d) where excessive loss or depreciation allowance has been computed. Explanation 2.- Production before the (Assessing Officer) of account books or other evidence from which material evidence could with due diligence have been discovered by the (Assessing Officer) will not necessarily amount to disclosure within the meaning of this section. 7. It is pointed out by Mr. Bansal that as far as the AY 1986-87 is concerned it is not even the case of the Revenue that there was an absence of full and true disclosure by the Assessee of all material facts necessary for the assessment and, therefore, Section 147 (a) was .....

X X X X X X X

Full Text of the Document

X X X X X X X

Oracle India Pvt.Ltd. v. Assistant Commissioner of Income Tax (2017) 83 Taxman.com 368(Del), HCL Technologies Ltd. v. Deputy Commissioner of Income Tax Central Circle-2 (decision dated 20th July 2017 WP(C) 8164 of 2010) and Unitech Ltd. Deputy Commissioner of Income Tax, Circle-27(1), New Delhi (order dated 24th July 2017 in WP(C) 12324 of 2015). He also referred to the observations of the Supreme Court in Commissioner of Income Tax, Delhi v. Kelvinator of India Ltd. (2010) 187 Taxman 312 (SC). 10. Mr. Ruchir Bhatia, learned Senior Standing Counsel for the Revenue, on the other hand submitted that merely because in respect of the above three items no additions were made to the income of the Assessee for AY 1987-88, it would make no differe .....

X X X X X X X

Full Text of the Document

X X X X X X X

318/- per share. Three, the SEBI approval was given much later; four, when the authorized capital of company was ₹ 20 lakhs (mostly paid) the necessity for issuing shares worth ₹ 87 crores remained unanswered. 12. Thus in the above case, the basis for the re-opening the assessment for AY 2011-12 was not merely the assessment order for the subsequent AY (2012-13) but other material/information which could support the reasons for reopening the assessment. 13. The basic proposition that for the purposes of Section 147 (b) of the Act, there has to be some information available with the AO to justify the reopening of the assessment has not been departed from in any of the decisions cited by learned counsel for the Revenue. The propo .....

X X X X X X X

Full Text of the Document

X X X X X X X

me-tax Officer. The reason must be held in good faith. It cannot be merely a pretence. It is open to the court to examine whether the reasons for the formation of the belief have a rational connection with or a relevant bearing on the formation of the belief and are not extraneous or irrelevant for the purpose of the section. To this limited extent, the action of the Income-tax Officer in starting proceedings in respect of income escaping assessment is open to challenge in a court of law. 17. Consequently, this Court is satisfied that in the present case the jurisdictional requirement of Section 147(b) of the Act as stood at the relevant time is not fulfilled. There was no information available to the AO specific to AY 1986-87 on the basis .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||