Diamond Tradecom Private Limited v/s. Income Tax Officer, Ward – 12(2)(1)

Parties Involved

Facts Summary

The assessee company, Diamond Tradecom Private Limited, filed its return of income for the assessment year 2015-16 declaring income of Rs. 2,75,390/-. However, the department's Insight Portal revealed that the company had made high-value multiple transactions amounting to Rs. 18,30,00,000/- during the relevant financial year. Consequently, the case was reopened by issuing a notice under section 148 of the Income-tax Act, 1961. The Assessing Officer (AO) provided several opportunities to the assessee but passed an ex parte order under section 144 of the Act due to non-compliance by the assessee. The subsequent appeal before the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi, was also dismissed for non-attendance and non-prosecution.…

Legal Issues

• 1. Validity of the assessment order and reassessment proceedings.
• 2. Whether the notice under section 148 is valid in light of the Supreme Court's judgment in Union of India v. Rajiv Bansal.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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