Regis Industries Limited Vs ITO (ITAT Kolkata)
ITAT Kolkata held that the reopening of assessment cannot be allowed on the basis of vague reasons, where AO has not done anything as there was gross non-application of mind by the Assessing Officer. Accordingly, reopening of assessment u/s. 147 is quashed.
Facts- AO reopened the case of the assessee u/s 147 of the Act by issuing notice u/s 148 of the Act on 29.07.2016, after receiving a letter dated 16.03.2016, from ITO (Inv.), unit-1, Kolkata, in which it was stated that assessee received money after huge cash was deposited in the individuals current account and proprietary concerns from which the assessee has received ₹3.64 crores.
AO came to the conclusion that the monies received from sale of shares of ₹11,55,75,000/- were deposited in the IDBI bank was nothing but unexplained cash credit u/s 68 of the Act as this is assessee’s own money received in the form of sale of shares and accordingly, the same was added to the income of the assessee. Further, AO treated the same as unexplained bank deposits u/s 69 of the Act and added ₹ 4,86,82,849/- to the income of the assessee. Similarly, the ld. AO found that there was some discrepancy in the cash-in-hand and accordingly same was also added to the extent of Rs. 42,05,909/- as unexplained cash credit u/s 68 of the Act.
