Divine Infracon Private Limited Vs Deputy Commissioner Of Income Tax Central Circle (Delhi High Court)
Delhi High Court held that initiation of reassessment under section 147/148 of the Income Tax Act merely on the basis of DVO report without application of mind by the AO is unsustainable and liable to be quashed.
Facts- A search and seizure operation u/s. 132(1) of the Act was conducted. For the AY 2010-11, petitioner filed its return of total income u/s. 139(1) of the Act on 15.10.2010, declaring ‘Nil’ income and for the AY 2011-12, the return of total income u/s. 139(1) of the Act, was filed on 29.03.2012, declaring the income of Rs. 12,87,070/-. AO issued notice (s) u/s. 153A of the Act on 15.09.2012 in respect of AY 2010-11 and on 26.09.2012 in respect of AY 2011-12.
During the course of Original Assessment Proceedings, petitioner filed complete books of account, bill and vouchers for the verification by the AO. The assessment for the AY 2010-11 was framed by the AO on 28.03.2013 at a total income of Rs. 35 Crores as against the declared income of Nil and for AY 2011-12, the Order of Assessment was framed on 28.03.2013 at a total income of Rs. 14,76,960/-. Petitioner preferred appeals against the aforesaid Orders of Assessment which are pending adjudication.
