Case Law Details
Ankur Power Projects Pvt Ltd Vs ITO (ITAT Mumbai)
Introduction: The recent order by the Income Tax Appellate Tribunal (ITAT) Mumbai in the case of Ankur Power Projects Pvt Ltd vs ITO highlights a significant development in reassessment proceedings. The ITAT quashed the reassessment, citing a lack of application of mind by the Assessing Officer (AO). This article provides a detailed analysis of the ITAT Mumbai order, focusing on the reasons for the reassessment being deemed invalid and its implications.
Detailed Analysis: Ankur Power Projects Pvt Ltd, engaged in the electricity business, contested the reassessment initiated by the AO for the assessment year 2011-12. The AO relied on information received from the Directorate of Investigation, alleging that the company had received accommodation entries in the form of share premium.
The crux of the matter lies in the reasoning behind the reassessment. The ITAT observed several defects in the reasons recorded by the AO:
1. Failure to reference the earlier completed regular assessment under section 143(3) of the Act.
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