Case Law Details
Ratori Maa Trading Vs ITO (ITAT Delhi)
ITAT Delhi held that enhancement by CIT(A) without providing reasonable opportunity of showing cause against the proposed enhancement to the Assessee is unsustainable in law.
Facts- The assessee-company was incorporated on 12.05.2008. The assessee company filed return of income for A.Y. 2009-10 which was processed u/s. 143(1). Subsequently, AO found that large amount of cash deposits on various branches followed by transfer to account of various individuals and business within the bank and other banks were done by the assessee.
AO thereafter recorded detailed reason u/s. 148(2) of the Act to conclude that chargeable income has escaped assessment. Notice u/s. 148 of the Act was issued for carrying out the assessment u/s. 147 of the Act.
Consequently, an amount of Rs. 42,10,200 was determined by AO as unexplained investment in the bank being the peak investment lying in the bank account at any point of time during the year.
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