Dy. Commissioner Vs. Abhi Capital Services Limited

Parties Involved

Facts Summary

The assessee, Abhi Capital Services Limited, is a company incorporated on 16th March 1995 under the Companies Act, 1956. It was engaged in trading in derivatives (Futures & Options) and equity shares, and received commission income for introducing clients in the stock market. The assessee filed its Income Tax Return for A.Y. 2011-12 on 31.03.2012 declaring a total income of Rs 62,750/-. The case was selected for assessment proceedings under section 153C of the Income-tax Act, 1961, and a notice was issued for filing the return for A.Y. 2011-12. The Assessing Officer made an addition of Rs.5,15,000/- and assessed the total income for A.Y. 2011-12 at Rs.5,77,750/-, raising a demand of Rs. 4,14,497/-. Aggrieved by this, the assessee appealed to the ld. CIT(A), who allowed the appeal. The Revenue then appealed to the Tribunal. The assessee’s counsel argued that the assessment was time-barred, as the deemed year of search was A.Y. 2023-24, and the ten-year block would only go back to A.Y. 2014-15.…

Legal Issues

• 1. Validity of the assessment order under section 153C of the Income-tax Act for A.Ys 2011-12 and 2012-13.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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