HARTRON SASE COMMUNICATIONS LTD.,NEW DELHI vs. DCIT, CIRCLE- 11(1), NEW DELHI

ITA 1064/DEL/2018Status: DisposedITAT Delhi18 October 2023AY 2009-10Bench: SHRI CHANDRA MOHAN GARG (Judicial Member), DR. B.R.R. KUMAR (Accountant Member)9 pages
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What did the Tribunal hold?

The Tribunal held that the AO initiated reassessment proceedings without proper application of mind and on borrowed satisfaction. The reasons recorded were vague, lacking details about the nature, amount, and parties involved in the alleged transactions, thus failing to establish a valid reason to believe that income had escaped assessment.

What were the facts?

The Assessing Officer (AO) initiated reassessment proceedings under Section 147 based on information that the assessee had obtained accommodation entries. The AO's reasons for belief were based on a list of companies found during a search and survey operation on Jain Brothers, where the assessee was listed. The assessee argued that the reasons were vague and lacked independent application of mind.

What were the issues?

Whether the reassessment proceedings initiated under Section 147 were valid, given the vague and unsubstantiated reasons recorded by the Assessing Officer. Whether the addition made under Section 68 on account of share capital and premium was justified.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(3),Section 68,Section 69C,Section 234A,Section 234B,Section 234C

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Income Tax Appellate Tribunal, DELHI BENCH: C: NEW DELHI

Before: SHRI CHANDRA MOHAN GARG & DR. B.R.R. KUMAR

Hearing: 17.08.2023Pronounced: 18.10.2023

PER CHANDRA MOHAN GARG, J.M.

This appeal has been filed against the order of CIT(A)-34, New Delhi dated 01.12.2017 for A.Y. 2009-10. 2. The grounds of appeal raised by the assessee are as follows:- 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in passing the impugned reassessment order u/s 147/143(3) without assuming juri iction as per law and without complying the mandatory conditions u/s 147 to 151 of Income Tax Act, 1961. 2. That in any case and in any view of the matter, impugned reassessment order passed by Ld. AO u/s 147/143(3), is bad in law and against the facts and circumstances of

The order continues below.

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