Anushree Maheshwari Vs PCIT-1 (ITAT Surat)
Date of intimation u/s. 143(1) to be considered for limitation period as reassessment and revisionary proceedings issue are different
ITAT Surat held that since issue of re-assessment proceedings and issue of revisionary proceedings are different, period of two years would start from the date of intimation u/s. 143(1). Thus, since revisionary proceedings initiated beyond two years bracket the same is liable to be set aside.
Facts- Post completion of assessment, information was received from DDIT(Inv.) Unit-5(2), Mumbai that the share of Gemstone Investment Ltd. was a penny stock and assessee was a beneficiary from trading of the above shares. The entire transaction was treated as “accommodation entry”. On the basis of above information, case of the assessee was reopened by issue of notice u/s 148 after obtaining prior approval of the competent authority. The reassessment was completed u/s 147 r.w.s. 144B of the Act on 30.03.2022 determining income at Rs.15,80,740/-after making addition of Rs.4,89,000/-.
Subsequently, PCIT was of the opinion that AO should also have made verification and enquiries in respect of gifts and cash deposits the failure of which result in under assessment of income of Rs.61,65,250/- and consequential short levy of tax of Rs.19,05,062/- along with applicable interest and penalty. Therefore, PCIT issued show cause notice u/s 263 of the Act. PCIT concluded that there was under assessment of Rs.61,65,250/- and sought levied of tax of Rs.47,62,655/-. Being aggrieved, the present appeal is filed.
