Reassessment proceeding based on other officer’s information without cogent material unjustified

Bhaijee Commodities Pvt Ltd Vs ACIT (ITAT Delhi)

ITAT Delhi held that initiation of reassessment proceedings u/s 147 of the Income Tax Act merely on the basis of information from other officer without cogent and demonstrable material unjustified.

Facts- The assessee-company is a brokerage house engaged in the services of commodities. The assessee has inter alia executed transactions towards commodities trading on by using National Multi-Commodity Exchange (NMCE) platform through certain brokers and sub-brokers.

On the basis of certain information received from investigation wing of the dep’t, the re-assessment proceedings were initiated and the notice u/s. 148(1) was issued on 31.03.2017 to assume jurisdiction for re-assessment u/s. 147 of the Act. The reassessment proceedings u/s. 147 were completed after making additions.

CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.

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