Inderlok Infra Agro Pvt. Ltd. vs. Income Tax Officer

Parties Involved

Facts Summary

Inderlok Infra Agro Pvt. Ltd. filed its income return on 10.10.2016, declaring income of Rs. 1,57,870/-. The return was selected for scrutiny and the assessment was completed on 07-12-2018, determining total income at Rs. 1,86,130/-. The Assessing Officer found that the assessee had debited an amount of Rs.4,20,83,544/- towards compensation expenses without deducting tax at source. The Assessing Officer reopened the assessment under Section 147 of the Income Tax Act, 1961, and issued a show cause notice under Section 148A(b) of the Act. The assessee filed objections, and the Assessing Officer passed an order under Section 148A(d) of the Act on 30.06.2022, after obtaining approval of Principal Commissioner of Income Tax (PCIT)-5, Mumbai. The Assessing Officer completed the reassessment on 03-05-2023, disallowing amount of Rs.1,26,25,363/- under Section 40(a)(ia) of the Act. The assessee filed an appeal against the reassessment order, which was dismissed.…

Legal Issues

• 1. Validity of reopening of assessment under Section 147 of the Income Tax Act, 1961
• 2. Lack of approval from the competent authority

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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