GEMCO INTERNATIONAL VS ITO,WARD 2(1), JAIPUR

Parties Involved

Facts Summary

The appeal was filed by M/s. Gemco International against the order of the ld. Addl.CIT(A)-12, Mumbai dated 08-02-2024 for the assessment year 2012-13. The assessee challenged the order of the ld. CIT(A) in confirming the assumption of jurisdiction by the ld. AO under section 147/148 of the IT Act. The assessee argued that the assessment of other person other than the searched person based on seized material can be made u/s 153C read with section 153A. The assessee also challenged the issuance of notice u/s 148 by the ld. AO which was issued on the basis of information received from a different AO and without independent verification of the information and independent application of mind over the information received. The assessee further challenged the disallowance of Rs. 2,63,245/- being 25% of alleged non verified and bogus purchase from two suppliers - M/s AVI Exports and M/s. Nazar Impex Pvt Ltd. The assessee also challenged the rejection of books of accounts of the assessee. The assessee sought to quash the notice issued u/s 148 and the assessment order.…

Legal Issues

• 1. The ld. CIT (Appeals) erred in law and on facts in confirming the assumption of jurisdiction by the ld. AO u/s 147/148.
• 2. The ld. CIT (Appeals) erred in law and on facts in confirming the issuance of notice u/s 148 by the ld. AO which was issued on the basis of information received from a different AO and without independent verification of the information and independent application of mind over the information received.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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