Case Law Details
Brief of the Case
ITAT Delhi held In the case of ITO vs. M/s Shakti Securities Pvt. Ltd. that merely based on investigation wing information without surveillance of substantiation and without any statement being mentioned therein and without nature of transaction being narrated therein and without tangible material, and further without application of mind on amount of income escaping assessment, shows that the reopening is bad in law and needs to be quashed. The present case is squarely covered by the decision of the Hon’ble High Court of Delhi delivered in Hotel Signatures Ltd. (2011) 338 ITR 51 in which reassessment proceedings held to be bad in law and decided the issue in favour of assessee.
Facts of the Case
ITA NO. 3475/DEL/2009 (REVENUE’S APPEAL)
The assessee is an investor company which is engaged in the business of dealing in shares and securities. For the AY 2001-02, return declaring total income of Rs.16,290/- was filed on 31.10.2011. The return was processed u/s. 143(1) but no scrutiny assessment was made. Subsequently on the information received from the DIT (Inv.) a notice u/s. 148 was issued after recording of reasons and served on the assessee on 26.3.2008. In response to that the assessee requested to treat the original return as the return in response to notice u/s. 148. The assessment was made u/s.147 by order dated 5.12.2008 determining the total income of Rs. 26,16,290/- and addition of Rs. 26,00,000/- passed u/s. 148/143(3).
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