Faithful Dealer Pvt. Ltd. vs. ITO, Ward-5(4), Kolkata

Parties Involved

Facts Summary

The assessee, Faithful Dealer Pvt. Ltd., a private limited company engaged in computer consultancy and software development, filed its return of income for the assessment year 2012-13 declaring a total income of Rs.2,68,700/-. The case was reopened, and a notice under section 148 of the Income-tax Act, 1961, was issued based on information from the Investigation Wing indicating a credit entry of Rs.1,56,99,000/- received by the assessee through layering of funds. The Assessing Officer added Rs.1,56,00,000/- as unaccounted income. The assessee challenged this order before the CIT(A), which was dismissed due to non-compliance. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the reasons recorded by the Assessing Officer for initiating proceedings under section 147 of the Act are valid and justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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