INCOME TAX ACT, 1961

Section 147

Reassessment - Validity - Non-application of mind by AO -

AO reopened assessment recording the reason that Shalom Exim (P) Ltd. had been beneficiary of accommodation entries being provided by certain entry operators and received unexplained credits in its bank account. Held: Assessee placed on record copy of Incorporation Certificate of assessee company at the initial stage in 2003 when it was registered as M/s. Shalom Exim (P) Ltd., which was later on changed to M/s. Mamram Developers (P.) Ltd., in 2003 itself and thereafter in 2009 it was changed to Shyam Sunder Infrastructure (P) Ltd., [present assessee]. An intimation was given to AO about change in the name of the assessee. Despite all these material on record before AO, he had mentioned the name of non-existing assessee, i.e., M/s. Shalom Exim (P) Ltd., in the reasons recorded for reopening of the assessment, that beneficiary was non-existing company. The name of present assessee was nowhere mentioned. Accordingly, AO did not even verify the name of assessee and recorded incorrect and wrong reasons for reopening of the assessment and did not apply his mind to the facts of case before recording reasons for reopening of assessment. Therefore, reassessment was quashed as invalid.

Relied:Pr. CIT v. RMG Polyvinyl (I) Ltd. (2017) 396 ITR 5 (Del-HC) : 2017 TaxPub(DT) 2034 (Del-HC), Pr. CIT v. Meenakshi Overseas (P) Ltd. (2017) 395 ITR 677 (Del.) : 2017 TaxPub(DT) 1791 (Del-HC), Pr. CIT v. G And G Pharma India Ltd. (2016) 384 ITR 147 (Del-HC) : 2015 TaxPub(DT) 4054 (Del-HC) and Sarthak Securities Co. (P) Ltd., (2010) 329 ITR 110 (Del-HC) : 2010 TaxPub(DT) 2311 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2003-04

INCOME TAX ACT, 1961

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