Rishi Bansal Vs ITO (Delhi High Court)
Delhi High Court held that AO has erroneously added value of transaction while calculating income that could possibly have escaped assessment. Accordingly, order set aside and matter remanded back to AO for fresh consideration.
Facts- The petitioner has filed the present petition, inter alia, impugning an order passed u/s. 148A(d) of the Income Tax Act, 1961 as well as the reopening of the assessment proceedings initiated pursuant to the notice issued u/s. 148 of the Act.
The present petition mainly contested that the assessment proceedings have been initiated after an expiry of a period of three years and the information available indicates that the income that could possibly have escaped assessment is less than the threshold amount of ₹50,00,000/- as specified under Section 149(1)(b) of the Act.
Conclusion- Held that Prima facie, it appears that the AO had erroneously added the value of the transaction, which includes the element of cash, and the alleged cash payment. However, the information available with the AO as disclosed does not support this computation. Thus, the impugned order is set aside. The matter is remanded to the AO to consider afresh in the light of the information as available as well as the petitioner’s reply to the notice issued under Section 148A(b) of the Act.
