Where after expiry of four years from end of relevant year, Assessing Officer initiated reassessment proceedings on basis of information received from Investigation wing that 'N' Ltd. was a penny stock listed in BSE which used to facilitate introduction of unaccounted income of members in form of share capital and, assessee was one of those beneficiaries, in view of fact that there was no company by name of 'N' Ltd. which was in existence at relevant time period, impugned reassessment proceedings deserved to be quashed
HIGH COURT OF BOMBAY
South Yarra Holdings
v.
Income Tax Officer, 16(1)(1)(4), Mumbai*
Section 69A, read with section 147 of the Income-tax Act, 1961 - Unexplained money (Shares) - Assessment years 2011-12 - For relevant year, assessee filed its return declaring certain taxable income - Assessing Officer completed assessment under section 143(3) - After expiry of four years from end of relevant year, Assessing Officer received Information from Investigation wing that 'N' Ltd. was a penny stock listed in BSE which used to facilitate introduction of unaccounted income of members in form of share capital and, assessee was one of those beneficiaries - On basis of said information, Assessing Officer initiated reassessment proceedings in case of assessee - It was noted that at relevant time period, there was no company by name of 'N' Ltd. was in existence and, thus, Assessing Officer had initiated reassessment proceedings merely on basis of information received from Investigation Wing without conducting any independent enquiries - Even otherwise, there was no failure on part of assessee to disclose all material facts at time of assessment and, thus, reassessment proceedings were hit by proviso to section 147 - Whether in view of aforesaid, impugned reassessment proceedings deserved to be quashed - Held, yes [Para 8] [In favour of assessee]
HIGH COURT OF BOMBAY
South Yarra Holdings
v.
Income Tax Officer, 16(1)(1)(4), Mumbai*
Section 69A, read with section 147 of the Income-tax Act, 1961 - Unexplained money (Shares) - Assessment years 2011-12 - For relevant year, assessee filed its return declaring certain taxable income - Assessing Officer completed assessment under section 143(3) - After expiry of four years from end of relevant year, Assessing Officer received Information from Investigation wing that 'N' Ltd. was a penny stock listed in BSE which used to facilitate introduction of unaccounted income of members in form of share capital and, assessee was one of those beneficiaries - On basis of said information, Assessing Officer initiated reassessment proceedings in case of assessee - It was noted that at relevant time period, there was no company by name of 'N' Ltd. was in existence and, thus, Assessing Officer had initiated reassessment proceedings merely on basis of information received from Investigation Wing without conducting any independent enquiries - Even otherwise, there was no failure on part of assessee to disclose all material facts at time of assessment and, thus, reassessment proceedings were hit by proviso to section 147 - Whether in view of aforesaid, impugned reassessment proceedings deserved to be quashed - Held, yes [Para 8] [In favour of assessee]
Refer:[2019] 104 taxmann.com 216 (Bombay)
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