Case Law Details
DCIT Vs N. M. Agrofood Products Pvt. Ltd (ITAT Jaipur)
ITAT Jaipur held that assessment which are already completed after making proper inquiries cannot be allowed to again reframed merely based on the search without any fresh evidence. Addition unsustainable
Facts-
The case of the assessee was selected for scrutiny and the assessment u/s 143(3) was completed on 25.03.2015. Thereafter, search was conducted in 2018 and AO observed that assessee company has received total quantum of share capital and premium on account of the aforesaid share allotment of 6,49,50,000/-from companies and individuals who not only lack credit worthiness but their identity itself cannot be proved. Hence, the assessee company was issued show cause notice that why the amount of share allotment money shouldn’t be considered as bogus and added back to the total income of the assessee.
After considering reply of the assessee, AO observed that transactions are bogus and are to be treated as unexplained income u/s 68.
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