Tremendous Mining And Minerals Pvt. Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi held that reopening of assessment under section 148 of the Income Tax Act on the basis of stale information results into change of opinion and the same is not sustainable in law. Accordingly, appeal is allowed and reopening is quashed.
Facts- A search and seizure operation u/s 132 of the Act was conducted in the case of M/s Bhushan Steel Ltd. (BSL) group and its group concerns on 13.06.2014. The case of the assessee was also covered in operation u/s 132 of the Act. The assessee filed return u/s 153A of the Act on 07.07.2016 declaring the same income as filed u/s 139 of the Act. The assessment u/s 153A r.w.s. 143(3) for AY 2012-13 was completed on 13.12.2016 at an income of Rs.9,000/-.
Then, based on the information received from Asstt. Director of Income-tax (Inv.), the case of the assessee was selected for reassessment u/s 148 of the Act. In the reopening reasons, it was mentioned that the books of account and ITR analysis of Jawahar Credit and Holdings Pvt. Ltd. reveals that during the AY 2012-13 it had issued shares at a premium to Bhushan Steel group companies and individuals only for Rs.82.10 crores. The bank accounts of M/s Jawahar Credit and Holdings Pvt. Ltd. reveals that money obtained from the above mentioned group companies was immediately invested further in various other companies. Apart from these high value shares based capital account transaction, there were hardly any revenue account transactions, the investment were made mostly in BSL group companies including Rs.25 crores to Tremendous Mining & Minerals Pvt. Ltd. in FY 2011-12. The receipt of Rs.25 crores was considered to be an escapement of income chargeable to tax and, accordingly, the notice was issued. The assessee filed a reply explaining the receipt which was not found tenable and the AO made an addition of Rs.25 crores which has been sustained by the CIT(A).
