ITO Vs HSG Propmart Private Limited (ITAT Delhi)
ITAT Delhi held that re-assessment proceedings under section 147 of the Income Tax Act initiated due to change of opinion without having any fresh material on record is liable to be quashed. Accordingly, appeal of revenue dismissed.
Facts- The Assessee is a Private Limited Company and engaged in the business as builders, consultants, civil engineers. The case was selected for Complete Scrutiny through CASS and the assessment u/s 143(3) of the Act was completed on 03.10.2017 with the acceptance of the returned loss of Rs. 7,86.370/-. Subsequently, the case was re-opened u/s 147 of the Act after recording the reasons that the appellant had issued shares of face value of Rs. 10 per share with a premium of Rs. 1918 per share to Mis Allure Imports Pvt. Ltd. Therefore, the share premium of Rs. 303,40,40,000/- received in excess of market value has resulted in under assessment of income in the hands of the appellant company. After considering the reply of the appellant, the AO completed the re- assessment proceedings u/s 147 r.w.s. 144B of the Act on 31.03.2022 with the addition of Rs. 303,40,40,000/- u/s 56(2)(viib) of the Act.
CIT(A) held that the reassessment proceeding was initiated by the A.O. due to change of opinion without having any fresh information/material in hands, therefore, set aside the assessment order. Being aggrieved, revenue has preferred the present appeal.
