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ITAT quashed reopening done without independent application of mind
ITAT quashed reopening done without independent application of mind
Information was received from the Investigation Wing that M/s Perfect Capital Services Ltd was a beneficiary of accommodation entries in the grab of share application money etc. CIT held that accommodation entry of Rs 3.5 lakhs had escaped assessment, and issued notice u/s 148 (of Income Tax Act, 1961). ITAT quashed reopening as reasons recorded were without independent application of mind.-500291
1. Information was received from the Investigation Wing that M/s Perfect Capital Services Ltd was a beneficiary of accommodation entries in the grab of share application money etc.
2. CIT held that income chargeable to tax to the extent of accommodation entry of Rs 3.5 lakhs had escaped assessment .
3. CIT issued notice u/s 148 (of Income Tax Act, 1961) after 4 years of the assessment having been completed.
The ITAT held as under:
4. AO has not properly assumed jurisdiction of this case, in view of the fact that the reasons recorded for reopening are without independent application of mind.
5. When the assumption of jurisdiction itself is bad in law, the question of restoring the matter to the file of the A.O. does not arise.
6. Applying the propositions laid down in the case of Principal Commissioner of Income Tax vs G&G Pharma India Ltd (Supra), to the facts of the case on hand, I hold that the reopening is bad in law.
Case Reference - Perfect Capital Services Ltd. vs. ITO.
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH 'SMC-I', NEW DELHI
BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER
ITA No. 387/Del/2014
( AY: 2004-05)
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