As per SC decision reassessment under sec 147 is to be valid only in the presence of material enable the AO to formed the decision that there is escape assessment

Last updated: 12 March 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The assessee is a private limited company engaged in the business of providing professional services and trading of shares. The return of income for the year under consideration was filed on 31.10.2001 declaring net income of Rs.13,833/-. The reassessment proceedings under section 147 were initiated by issue a notice under section 148 on 28.03.2008. The assessee submitted that the return filed under section 139 (1) was treated as return of income filed under section 148 of the Act. The Assessing Officer made an addition of Rs.36 lacs. The assessee has challenged the reassessment proceedings as well as the additions made before the CIT (A). The CIT (A) allowed the assessee’s appeal on both the grounds, i.e., the initiation of reassessment proceedings as well as on merits of the addition

Citation :
ITO, Ward 5 (2), New Delhi. (APPELLANT)Vs.M/s. Kautilya Monetary Services Pvt. Ltd.,10, Local Shopping Complex, Kalkaji,New Delhi.(PAN: AAACK3995P) (RESPONDENT)