Case Law Details
M/s Aash Trading Company Pvt. Ltd. Vs ITO (ITAT Delhi)
We find that AO in the reasons recorded has mentioned that Rs. 75 lacs on account of accommodation entry has been escaped, however, he had issued noticed u/s. 148 of the Act to the assesee. In response to the same, assessee filed the objection which was decided in a summary manner. We further find that after considering the reply filed by the assessee as well as documentary evidences, the AO has made the addition of Rs. 15 lacs u/s. 68 of the Act whereas AO has issued the notice u/s. 148 of the Act for escapement of income of Rs. 75 lacs which is contrary in law and shows the non-application of mind on the part of the assessee. Hence, on this account, the assessment in dispute framed by the AO is bad in law and deserve to be quashed. We further find that exactly under the similar facts and circumstances there are various cases, as relied by the ld. Counsel for the assessee, in which similar issue has been adjudicated and decided in favour of the assesee wherein the assessment has been quashed, especially the recent ITAT, Delhi SMC-I Bench decision dated 10.09.2020, passed in the case of Smt. Meena Gupta passed in ITA No. 7372/Del/2012 (AY 2011-12).
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal filed by the Assessee is directed against the impugned order dated 30.04.2019 passed by the Ld. CIT(A)-1, New Delhi in relation to assessment year 2011-12.
2. The brief facts of the case are that the assessee filed its return of income declaring NIL income on 30.3.2012. The case of the assessee was reopened u/s. 147 of the Income Tax Act, 1961 (hereinafter called as “Act”) by issuing notice u/s. 148 of the Act on 31.3.2018 with the prior approval of the competent authority. The assessment in this case was completed under section 148 of the Act on 17.12.2018 at Rs. 15,00,000/-. In the assessment order AO made addition u/s. 68 of the Act amounting to Rs. 15,00,000/-. Against the assessment order, assessee appealed before the Ld. CIT(A) who vide his impugned order 30.4.2019 has dismissed the appeal of the assessee. Aggrieved with the impugned order dated 30.4.2019, assessee is in appeal before the Tribunal.
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