Case Law Details
ACIT Vs Opal Buildwell P. Ltd. (ITAT Delhi)
ITAT Delhi held that issuance of notice u/s 153C of the Income Tax beyond six Assessment Year immediately preceding the Assessment year from the date of recording of satisfaction note/ handling over of relevant material is not in accordance with law.
Facts- The assessee filed its return of income for A.Y. 2010-11 declaring income of Rs. 2,81,421/- which was processed u/s. 143(1) of the Act. Subsequently, the assessment has been reopened u/s. 153C of the Act on the allegation that certain documents/papers belonging to the appellant were found during the course of search u/s. 132 at the premises of Appu Ghar Group of cases. Admittedly, no documents/ papers belonging to the appellant pertaining to this year was found in the course of search.
In the course of assessment proceedings, AO asked the assessee to file necessary evidences regarding various amounts, aggregating to Rs. 12,60,33,832/- received by it from various persons. In response to the same, the appellant filed its reply along with all relevant evidences. Thereafter, the AO randomly selected 20 parties and issued summons to them u/s 131 of the Act. According to him, none of them were found at the given address. Hence, addition of Rs. 12,60,33,832 /- was made by him.
CIT(A) allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
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