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Case Law Details

Case Name : Sharvah Multitrade Company Private Limited Vs ITO (Bombay High Court)
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Sharvah Multitrade Company Private Limited Vs ITO (Bombay High Court)

Bombay High Court on non application of mind by AO while recording reasons as well as by PCIT while granting approval. Passes severe strictures against AO who recorded reasons for reopening, JCIT who recommended for approval and PCIT who granted approval. High Court Asks  CBDT to formulate a scheme to train its officers how to apply their mind while recording reasons.

HC directs that A copy of this order be placed befor

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5 Comments

  1. Mayur Mehta says:

    I wish some wise persons are given task to frame income tax act in a simple and unambiguous language. Preamble to the act should be ” Citizens have been granted freedom to earn income by practicing lawful vocation and in return of this freedom the citizens agree to pay tax honestly and with honour without any abuse of the Act

  2. Bibu Bose says:

    These kind of Officers ,not only ,don’t have a mind but have also sold their souls to Saturn.
    They first send their #Dalals after you for settlement and todpani.If you refuse they slap you with a notice.
    Or
    Targets are fixed for these officers .I order to fullfill targets they slap notices at random to ensure they complete their targets and are considered for promotions.
    My mother,84 yrs old has been a victim of such arbitrary decisions.A case of mistaken identity.Notice meant for a third person with a similar name.Signed affidavit submitted,police investigation report submitted upholding her contention.Yet the harassment continues while these corrupt officers continue with their activities with gay abandon.
    High Court right in passing strictures.But these officers should be held accountable for their illegal actions .

    1. K Ranga Rao says:

      making such comments is uncalled for. We can’t comment without going into the case records. The HC is judging only on the basis of Documents filed before it by the petitioner-assessee. I have also come across such complex entry provided by a pearl trade to its own firm. Of course after scrutiny of accounts for 2 days, entry by entry, he came up with another explanation, which was also scrutinized w.r.t the bank acct., and this led to discovery of a bank account in another bank which was not disclosed to the department. Then the AR offered the profit margin on the credits in the undisclosed bank as income which I rejected and assessed peak credit. Basically Officers do not have time to work for various reasons like workload, lack of infrastructure, lack of library facilities and of course lack of training. I agree in the dept., also the training policy and placement policy are dominated by whims and fancies. A lot needs to be done, but now with faceless, the assessee are also misleading the dept.

  3. Keen observer says:

    But the story of recording reasons are over for 148 proceedings,and 95 pc assessee won on technical grounds.The same would had happened for post 1 St April to June 2021 notices but assessee aproached in thousands to courts and courts are directing to recourse to new sections 148 A.So golden opportunity wasted .

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