Devangbhai Jayantilal Desai vs. The Asst. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee filed a return of income for the Assessment Year 2012-13 on 25.09.2012, declaring income of Rs.65,39,000/-. A revised return was filed on 19.01.2013, declaring total income of Rs.65,87,810/-. The case was processed under Section 143(1) of the Income Tax Act, 1961 on 20.05.2013. The case was subsequently reopened under Section 147 of the Act after obtaining prior approval of Pr.CIT-3, Vadodara, and a notice under Section 148 of the Act was issued on 30.03.2019. The case was reopened because the assessee had sold shares of Divine Multimedia (India) Ltd. amounting to Rs.9,87,544/-, but no capital gain was disclosed in the return of income. The re-assessment was completed under Section 143(3) read with Section 147 of the Act on 27.12.2019 at a total income of Rs.1,11,77,830/-.…

Legal Issues

• 1. Whether the reopening of assessment after four years from the end of the relevant assessment year is valid?
• 2. Whether the addition of Rs. 29,23,000/- on the erroneous plea of it being an unexplained cash credit under Section 68 of the Act is justified?
• 3. Whether the initiation of penalty proceedings under Section 271(1)(c) of the Act is justified?

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Harun Ali vs. Pr.CIT

  Delhi Bench benchAY 2015-16Allowed

• Lemongrass Dealtrade Pvt. Ltd. vs. ITO, Ward-2, Shillong

  Kolkata bench

• Ashish Jain vs. ITO

  Delhi Bench ‘B’ benchAY 2016-17Allowed

• Birendra vs. Income Tax Officer, Ward-2(5), Ghaziabad

  Delhi bench

• Assistant Commissioner of Income Tax, Circle 10(1), R. No. 389A, 3rd Floor, CR Building, IP Estate, Delhi 110001 Vs. Jindal Poly Films Limited, 19th K.M. Hapur, Bulandshahar Road, P.O. Gulaothi, Bulandshahar, Uttar Pradesh 203408

  Delhi Bench 'C', Delhi benchAY 2012-13Dismissed

• MEENU RANI VS. ITO, WARD 3(3)(2)

  Delhi Bench benchAY 2012-13Allowed