Peass Industrial Engineers (P) Ltd. v. Dy. CIT

INCOME TAX ACT, 1961

--Reassessment--Notice under section 148 Validity--AO having tangible material--Notice for reassessment was rightly issued as AO had tangible material in form of specific information received by Investigation Wing that assessee had been beneficiary of bogus transactions.--AO reopened assessment of assessee by issuing notice under section 148 on the ground that a specific information had been received by DGIT (Investigation), with regard to bogus purchases wherein consequent to survey upon K brothers it was found that they were well known entry operators of Kolkata and used to give entries of bogus share capital, bogus bills of expenses and bogus long terms capital gains to various beneficiaries throughout the country and assessee was one of those beneficiaries. Held : When the Authority is armed with the tangible material in the form of specific information received by the Investigation Wing, it is thoroughly justified in issuing a notice for reassessment.

Income Tax Act, 1961, Sections 148