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

Parties Involved

Facts Summary

The assessee, Lemongrass Dealtrade Pvt. Ltd., filed its original return of income for the Assessment Year 2012-13, declaring a total income of Rs. 10,200/-. The return was selected for scrutiny and assessment under section 143(3) of the Income-Tax Act, 1961. An assessment order was passed on 26.03.2015. After considering the order of the Principal Commissioner of Income Tax (PCI), a revised order was passed on 27.07.2016. The case was reopened under section 147 of the Act after the Assessing Officer (AO) received information that the assessee was a beneficiary of an accommodation entry from M/s Bhagyshree Vincom Pvt Ltd. The AO made an addition of Rs. 59,00,000/- on 27.12.2019 under section 143(3)/147 of the Act due to unexplained cash credit under section 68 of the Act.…

Legal Issues

• 1. Whether the reopening of assessment u/s 148 of the I.T. Act, 1961 after a lapse of 4 years was on borrowed satisfaction and not on any independent application of mind by the assessing officer and hence the reopening be declared to be bad in law and the reassessment order be quashed.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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