Case Law Details
Longowalia Yarns Limited Vs DCIT (ITAT Chandigarh)
ITAT Chandigarh held that AO not empowered to disturb the assessment order/ reassessment order which has attained finality, unless contrary material gathered in the course of proceedings u/s 153A of the Income Tax Act.
Facts-
A search and seizure action u/s. 132 of the Act was conducted at the business and residential premises of the assessee on 04/09/2014. Thereafter, notice u/s. 153A was issued on 23/06/2016 and assessment was framed u/s. 153A r.w.s 143(3) dt. 30/12/2016 wherein AO has applied the commission rate of 2% for obtaining alleged accommodation entries in the garb of share capital / share application money amounting to Rs. 11,50,00,000/-and added the amount of Rs. 23,00,000/-on account of unexplained expenditure u/s. 69C of the Act.
Here it is relevant to note that the assessee had originally filed its ROI u/s. 139(1) on 12/09/2011 and same was processed u/s. 143(1) on 08/02/2012 and thereafter the original assessment was framed u/s. 143(3) on 28/03/2014 wherein addition of Rs. 11,50,00,000/- was made on account of unexplained share application money received u/s. 68 of the Act. Subsequently during the pendency of the appeal u/s. 250 against the original assessment order, the assessee availed the benefit of Vivad Se Vishwas Scheme 2020 and the matter relating to addition u/s. 68 on account of unexplained share application money thus attained finality.
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