Validity of Reassessment based on Audit Report/Balance Sheet Submitted during Original Assessment

Brief Facts: 1. The assessee is a company, that filed its income tax return for the Assessment Year 2004-05, declaring an income of Rs. 10,40,11,590/-. Scrutiny Assessment under section 143(3) of the Income Tax Act, 1961 was completed on 22.03.2005. 2. After that, Assessing Officer issued notice u/s 148 of the Income Tax Act, 1961 and gave the following reasons for the same:- a) The assessee company showed Unsecured Loans from Directors in the Balance Sheet, amounting to Rs. 4,13,61,284/- as compared to Annexure-1 to Form 3CD of Audit Report, wherein the amount was 17,76,66,492/-. The differen...