INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Jurisdiction of AO to issue notice under section 147 -

AO had recorded the reason for reassessment that partnership firm had purchased property having document value of Rs. 2,70,00,000. A search came to be carried out on a group concern and papers related to purchase of such property was found wherein, the payment for acquisition of property was shown at Rs. 7,92,00,000 which suggests that the firm has made payment of Rs. 5,22,00,000 in cash. Held: As submitted that, after satisfying himself, AO had framed the assessment in the case of the firm accepting the explanation given by firm. The reopening was based upon a search carried out at premises of a group concern. It was submitted that, under the circumstances, AO could not have assumed jurisdiction under section 147 and a notice under section 153C could have been issued, if permissible. Notice, returnable on 10th December 2019 was issued. By way of ad-interim relief, further proceedings pursuant to notice issued by Revenue under section 148 were stayed.

REFERRED :

FAVOUR : Appeal listed

A.Y. :

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