Brief about the case
The assessee is a private Ltd. Company and it filed its return of income on 23.8.2004 declaring income of Rs. 11,000/-. The return of Income was processed u/s 143(1). Later notice u/s 148 of the Act dated 31.3.2011 was issued to the assessee. The assessee filed a reply dated 11.4.2001, wherein it has stated that, the return of income filed u/s 139 of the Act on 23.8.2004, be treated as a return filed in response to notice u/s 148 of the Act. The assessment was completed on 15.12.2011 u/s 147 r.w.section 143(3) determining total income of Rs.2,14,38,400/-. Aggrieved the assessee carried the matter in appeal, challenging both the reopening of assessment as well as the merits of the addition. The first appellate authority dismissed the appeal of the assessee. Aggrieved, the assessee knocked the door of Delhi ITAT.
The revenue averred that The assessee has received unexplained sums from the entry operators and the plough it back in its books of account in various forms including the form of bogus share capital/capital gains etc after routing the same through the bank account (s) of the entry operators.
As the assessee has produced evidences in support of this claim and as the AO has not conducted any investigation nor collected any evidence to controvert the claim of the assessee, the ITAT Delhi held the additions as bad in law and allowed the appeal of the assessee.
Facts of the case:
