Case Law Details
Govindbhai Laljibhai Kakadia Vs Joint Commissioner of Income-tax (ITAT Mumbai)
ITAT Mumbai held that reassessment proceedings u/s 148 within limitation period specified under section 149(1) of the Income Tax Act is valid and sustainable in law.
Facts- The Appellant filed original return of income. Subsequently, summons were issued to the Appellant u/s. 131 of the Act. The Appellant was asked to furnish details of foreign bank accounts held by the Appellant. In response, the Appellant submitted that no foreign bank accounts were held by the Appellant.
In view of the aforesaid reply, the Appellant was confronted by the Investigation Wing with the fact that the Appellant was beneficiary in three foreign bank accounts held with HSBC Bank, Geneva. Thereafter, on 12/03/2014, another notice, dated 12/03/2014, was issued to the Appellant u/s. 148 of the Act for A.Y. 2006-07. The Appellant filed objections to reopening of assessment vide letter, dated 04/11/2014, which were rejected by the Assessing Officer.
Further, Assessing Officer proceeded to frame Assessment Order, dated 25/03/2015, passed u/s. 143(3) read with Section 147 of the Act making an addition of INR 1,00,000/- u/s. 69A of the Act to the returned income of INR 2,54,678/- to assess total income of the Appellant at INR 3,54,680/-. It would be pertinent to note that while the Appellant had executed Consent Waiver Form, as required by the tax authorities, for obtaining copy of the account statements from HSBC Bank, Geneva, no details were received till the date of passing of the Assessment Order.
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