Case Law Details
Raj Kumar Prop Vs DCIT (ITAT Delhi)
ITAT Delhi held that if already filed return is to be treated for the purpose of re-assessment, then, filing of fresh return on receipt of notice under section 148 of the Income Tax Act is not required.
Facts- During the re-assessment proceedings, AO found from the ledger account of Shri Shyam Trading Co. that the assessee booked sales of Rs. 2,62,10,040/- from the said concern. Enquiries made by the Directorate of Income Tax, Gurgaon revealed that Shri Shyam Trading Co. is a concern of Shri Vipin Garg who is engaged in the business of providing bogus accommodation entries and money laundering activities. The Ld. AO vide ordersheet entry dated 24.12.2017 required the assessee to show cause why his books be not rejected u/s. 145(3) of the Act. The explanation of the assessee was not acceptable to the Ld. AO who rejected the assessee’s books u/s. 145(3) of the Act and applied profit rate of 8% on sales/gross receipts of Rs. 14,10,41,735/- which gave profit of Rs. 1,12,83,338/- and completed the assessment on total income of Rs. 1,12,83,338/- on 28.12.2018 u/s. 143(3) r.w.s. 147 of the Act.
Aggrieved, the assessee filed appeal before the Ld. CIT(A). Addition of Rs. 1,12,83,338/- was restricted to Rs. 10,48,420/- only. Still dissatisfied, the assessee is in appeal before the Tribunal.
Conclusion- It is now well settled that the assessee need not file fresh return on receipt of notice under section 148 of the Act if he feels that the earlier return should be treated for the purpose of re-assessment, he may inform the Ld. AO of his decision to treat his previous return as the return filed in response to the notice and then the previous return shall be treated as the fresh return submitted in response to the notice.
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