THE ITO, WARD-2(3)(8), SURAT vs. SHRI SHAKTI G. KARNAWAT, SURAT

ITA 1504/AHD/2017Status: DisposedITAT Surat07 December 2018AY 2007-088 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reopening of assessment was not sustainable because the AO did not make any addition on account of unexplained loans, which was the basis for reopening. The Tribunal also found a lack of live-link between the information available to the AO and the belief formed for reopening.

What were the facts?

The Assessing Officer (AO) reopened the assessment based on information that the assessee received unsecured loans from certain parties. However, during the assessment, the AO treated these transactions as bogus purchases and made additions. The assessee argued that the reopening was invalid as the AO did not make additions on the grounds for which the assessment was reopened.

What were the issues?

Whether the reopening of assessment under Section 147 was valid when the addition was made on a different ground than the one stated in the reasons for reopening. Whether there was a live-link between the information received and the formation of belief by the AO.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 68

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Income Tax Appellate Tribunal, SURAT– BENCH ‘SURAT’

Before: SHRI RAJPAL YADAV & SHRI AMARJIT SINGH

For Appellant: Shri Suresh Anchaliya, AR
Hearing: 16/11/2018Pronounced: 10/12/2018

PER RAJPAL YADAV, JUDICIAL MEMBER:

Present cross appeals are directed against order of the ld.CIT(A)-3, Surat dated 20.3.2017 passed for the Asstt.Year 2007-08. 2. Assessee in its appeal has pleaded that the ld.CIT(A) has erred in upholding reopening of the assessment by issuance of notice under section 148 of the Income tax Act, 1961. ITA No.1504/Ahd/2017 and No.1381/Ahd/2017 2

3.

As far as second fold of grievance is concerned, it is common with grievance raised by the Revenue in its appeal. The ld.AO has made addition of Rs.10,15,84,690/- on

The order continues below.

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