DCIT Vs Dinakara Suvarna (Supreme Court of India)
The matter concerned the validity of reassessment proceedings initiated under Section 147 of the Income-tax Act, 1961 for Assessment Years 2005-06, 2006-07 and 2007-08, and the addition of Rs. 28,75,500 under Section 69B towards alleged unexplained investment. The Supreme Court considered a challenge to the Karnataka High Court judgment, which had allowed the assessee’s appeals. The Supreme Court condoned the delay and dismissed the Special Leave Petition, holding that the impugned High Court order did not call for interference. Consequently, the High Court judgment remained undisturbed.
Read HC Judgment in this case: Section 147 Reopening Invalid Where Section 153C Procedure Applies: Karnataka HC
The assessee, an individual engaged in contract works, had filed returns of income for the relevant assessment years. A search under Section 132 was conducted at the residence of Shri Ashok Kumar Chowta, during which a diary containing details of payments allegedly made to the assessee was seized. Thereafter, a survey was conducted at the assessee’s business premises, and his statement was recorded. The assessee agreed to offer 8% of additional receipts as income but did not file revised returns. The Assessing Officer subsequently issued notices under Section 148, completed reassessment proceedings for the three assessment years, and made additions. The Commissioner of Income Tax (Appeals) partly allowed the appeals. Both the assessee and the Revenue appealed before the ITAT, which partly allowed the appeals and cross-objections, including reversing the Commissioner (Appeals) on the Section 69B addition for Assessment Year 2007-08.
