DCIT Vs Toor Finanace Company Limited (Guwahati High Court)
Guwahati High Court held that AO can make addition of any other income which has escaped assessment but discovered during re-opening process even if the same is not specifically mentioned in re-opening order.
Facts- The respondent assessee filed its return of income on 27.012.2010 declaring a total income of Rs.57,652/-. The said return was processed u/s. 143(1) of the Income Tax Act, 1961 and the AO re-opened the assessment u/s. 148 of the Income Tax Act while disclosing the reasons for re-opening contending that he had reason to believe that an amount of Rs.18,00,000/-, which was chargeable to tax had escaped assessment for the year under consideration.
However, AO made two additions, namely, Rs.8,94,55,000/- as unexplained credits u/s. 68 of the Income Tax Act and Rs.26,83,650/- u/s. 69 of the Income Tax Act being commission paid by the assessee for arranging this bogus accommodation entry of unexplained credit amounting to Rs.8,94,55,000/-.
CIT(A) allowed the appeal. Tribunal dismissed the appeal of the revenue. Being aggrieved, revenue has preferred the present appeal.
Conclusion- High Court of Karnataka in N. Govindaraju has come to the conclusion that the Assessing Officer can take into consideration any other income which may have escaped assessment but discovered during the re-opening process, however, was not specifically mentioned in the reopening order.
