Mere information regarding income escapement can be considered valid for the purpose of sec. 147

Whether failure on part of AO for examining truly and fully all the material facts by the assessee could lead to reassessment and also mere information regarding income escapement can be considered valid for the purpose of sec. 147?

Held No, in this case, the AO issued notice u/s 148 on the basis of the letter of DIT (Inv.) which was vaguely referred and also the facts as contained in the said communication were not mentioned. On examining the facts and Audi Partem Alteram, it was concluded as the reassessment proceedings was carried out without any material facts and were completely vague and therefore the appeal was dismissed by the Hon’ble High Court as no question of law arises.

THE HIGH COURT OF DELHI AT NEW DELHI

 Judgment delivered on: 20.05 .2013

ITA 608/2012

COMMISSIONER OF INCOME TAX -IV   

versus

M/s INSECTICIDES (INDIA) LTD.            

ITA 609/2012

COMMISSIONER OF INCOME TAX -IV       

versus

M/s INSECTICIDES (INDIA) LTD.          

Advocates who appeared in this case:

For the Appellant : Mr N. P. Sahni with Mr Ruchesh Sinha

For the Respondent: Mr K.V.S Gupta

CORAM:-

HONORABLE MR JUSTICE BADAR DURREZ AHMED HONORABLE MR JUSTICE VIBHU BAKHRU

JUDGMENT

BADAR DURREZ AHMED, J (ORAL)

1. These appeals by the revenue are directed against the order dated 12.10.2011 passed by the Income Tax Appellate Tribunal, New Delhi in ITA Nos. 2332-2333/Del/2010 relating to the assessment years 2002-03  and 2003-04 (respectively). In both these appeals the issue relates to the validity of the reassessment proceedings under Section 147 of the Income – tax Act, 1961 (hereinafter referred to as “the said Act”).