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| The Tax Publishers2021 TaxPub(DT) 1621 (Del-Trib) INCOME TAX ACT, 1961
Section 147
Reassessment notice based on wrong facts was without jurisdiction and was liable to be quashed and, therefore, reassessment was not valid.
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Reassessment - Under section 147 - No proper appreciation of facts by AO -
AO received information from investigation wing as to assessee having received accommodation entries of alleged bogus purchases from M/s 'D'. Accordingly, AO reopened assessment and made addition. Assessee challenged this on the ground of non-application of mind by AO. Held: Although there was information about assessee having received benefit of accommodation entries relating to alleged bogus purchases, assessee had demonstrated before AO with evidence that no purchases were made by assessee-company from M/s. D during the year under consideration and further that concerned amounts only depicted entries pertaining to payments made against outstanding opening balance of the said party. Accordingly, reassessment notice based on wrong facts was without jurisdiction and was liable to be quashed and, therefore, reassessment was not valid.
Relied:Ankiota A. Chokesy v. ITO & Ors. (2009) 411 ITR 207 (Bom) : 2019 TAxPub(DT) 723 (Bom-HC), Dy. CIT v. K.L.A. Foods (India) Ltd. ITA No. 2846/Del/2015, vide Order, dated 8-4-2019, Pr. CIT v. SNG Developers Ltd. 404 ITR 312 : 2018 TaxPub(DT) 3140 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
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