The Tax Publishers2019 TaxPub(DT) 1775 (Del-Trib) : (2019) 070 ITR (Trib) 0211

INCOME TAX ACT, 1961

Section 147

Reopening of assessment merely based on report of Investigation Wing without independent application of mind on AO's part was set aside.

Reassessment - Reason to believe - Information emanated from investigation wing - Non-application of mind

AO received information from investigation wing as to assessee having received bogus share application money from certain entry operators. Accordingly, AO reopened assessment and made addition under section 68. Held: As apparent, AO merely referred to report of investigation wing in the reasons recorded for reopening of assessment. Even name of so-called entry operator had not been mentioned. Accordingly, there was clear non-application of mind on AO's part and reopening of assessment was, therefore, set aside.

Followed:Pr. Crr v. G and G Pharma India Ltd. (2016) 384 ITR 147 (Delhi) : 2015 TaxPub(DT) 4054 (Del-HC), Pr. CIT v. RMG Polyvinyl (I.) Ltd. (2017) 396 ITR 5 (Delhi) : 2017 TaxPub(DT) 2034 (Del-HC) and MRY Auto Components Ltd. v. ITO [ITA No. 2418/Delhi/2014, dt. 15-9-2017].

REFERRED : Aaspas Multimedia Ltd. v. Dy. CIT (2018) 405 ITR 512 (Guj) : 2017 TaxPub(DT) 1665 (Guj-HC), AGR Investment Ltd. v. Addl. CIT (2011) 333 ITR 146 (Del) : 2011 TaxPub(DT) 0812 (Del-HC), Amit Polyprints (P) Ltd. v. Dy. CIT (2018) 94 Taxmann.comm 393 (Guj), Agya Ram v. CIT (2016) 386 ITR 545 (Del) : 2016 TaxPub(DT) 3841 (Del-HC), CIT v. Atul Jain (2008) 299 ITR 383 (Del) : 2008 TaxPub(DT) 0697 (Del-HC), CIT (Pr.) v. G and G Pharma India Ltd. (2016) 384 ITR 147 (Del) : 2015 TaxPub(DT) 4054 (Del-HC), CIT v. Highgain Finvest (P) Ltd. (2008) 304 ITR 325 (Del) : 2008 TaxPub(DT) 0695 (Del-HC), CIT v. Independent Media (P) Ltd. (I.T.A. No. 108 of 2013, dt. 19-11-2015), CIT (Pr.) v. Meenakshi Overseas (P) Ltd. (2017) 395 ITR 677 (Delhi) : 2017 TaxPub(DT) 1791 (Del-HC), CIT (Pr.) v. Paramount Communication (P) Ltd. (2017) 392 ITR 444 (Delhi) : 2017 TaxPub(DT) 0794 (Del-HC), CIT (Pr.) v. RMG Polyvinyl (I.) Ltd. (2017) 396 ITR 5 (Delhi) : 2017 TaxPub(DT) 2034 (Del-HC), General Electoral Trust v. ITO (2016) 289 CTR 284 (Bom) : 2016 TaxPub(DT) 3822 (Bom-HC), Indu Lata Rangwala v. Dy. CIT (2016) 384 ITR 337 (Delhi) : 2016 TaxPub(DT) 2519 (Del-HC), MRY Auto Components Ltd. v. ITO (I.T.A. No. 2418/Delhi/2014, dt. 15-9-2017), Oriental Insurance Co. v. CIT (2015) 378 ITR 421 (Delhi) : 2015 TaxPub(DT) 3662 (Del-HC), Paramount Communication (P) Ltd. v. Pr. CIT (2017) 396 ITR (St.) 75 (SC), Rajiv Agarwal v. Asst. CIT (2017) 395 ITR 255 (Delhi) : 2017 TaxPub(DT) 1855 (Del-HC), Raymond Woollen Mills Ltd. v. ITO (1999) 236 ITR 34 (SC) : 1999 TaxPub(DT) 0348 (SC), Rustagi Engineering Udyog (P) Ltd. v. Dy. CIT (2016) 382 ITR 443 (Delhi) : 2016 TaxPub(DT) 1719 (Del-HC), Sab Infrastructure Ltd. v. Asstt. CIT (2017) 398 ITR 198 (Del) : 2017 TaxPub(DT) 4248 (Del-HC), Shiv Sai Infrastructure (P) Ltd. v. Dy. CIT (W.P.(C) 2158/2016 & W.P.(C) 2383/2016, dt. 23-7-2018) : 2018 TaxPub(DT) 4951 (Del-HC), Signature Hotels (P) Ltd. v. ITO (2011) 338 ITR 51 (Del) : 2011 TaxPub(DT) 1992 (Del-HC) and Sonia Choudhary (Mrs.) v. ITO [ITA Nos. 2036 and 2037/Del/ 2010, dt. 7-10-2016].

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