Case Law Details
Samridhi Stocks Pvt Ltd Vs ITO (ITAT Kolkata)
The Income Tax Appellate Tribunal (ITAT) in Kolkata recently passed a crucial judgment in the case of Samridhi Stocks Pvt Ltd vs Income Tax Officer (ITO). The case pivots on the reopening of an assessment more than four years after the end of the relevant assessment year and the invalidation of that reopening by the ITAT.
In this case, the assessee contended that the reopening of the assessment was unjustified as it was initiated after four years from the end of the relevant assessment year, despite the absence of any failure on the part of the assessee to disclose all material facts fully and truly. The ITAT found that the assessment was reopened solely based on information received from the investigation wing, without verifying the authenticity of the data.
Interestingly, the reasons recorded for reopening the assessment suggested that the assessee had booked a bogus profit, but during the reassessment, the Assessing Officer disallowed a loss relating to a commodity transaction. This discrepancy was noted by the ITAT, adding to the determination that the reopening of the case was based on inaccurate facts.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
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