Case Law Details
Nisha Diamonds Private Limited Vs ITO (Gujarat High Court)
Facts- Assessee filed the ROI for AY 2012-13 on 24.08.2012 declaring total income at INR 28,910. The assessment u/s 143(3) was completed on 31.03.2014. The purchase transaction with M/s. Agni tuning to INR 14,62,00,000 was the main reason for reopening of the assessment for the year. Mainly, re-opening of the assessment was questioned via writ application. It was also alleged that the said transaction was truly disclosed in the books of accounts hence reopening beyond 4 years is not permissible.
Conclusion- After framing of the assessment made under Section 143(3) of the Act, tangible material came into the hands of the AO through the investigation wing and upon perusal of the same, he made independent inquiries and applied his mind and upon due satisfaction, he formed an opinion that, the income has escaped assessment.
Where the transaction itself on the basis of the subsequent information is found to be a bogus transactions, mere a disclosure of said transaction at the time of original proceedings, cannot be said to be a disclosure of “true and full” facts in the case.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
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