Luv Bhardwaj vs. DCIT

Parties Involved

Facts Summary

The case was reopened under Section 147 of the Income Tax Act, 1961 against the assessee firm who filed his return of income for AY 2012-13 declaring the total income at Rs.42,50,930/-. The return was processed under Section 143(1) on 26.02.2013 at the returned income. Subsequently, on the basis of an information received from the Office of the Dy. Director of Income-tax (Investigation), Unit 7(1), New Delhi that the assessee received unexplained money from two companies for the year under consideration, namely, Popular Realtech P. Ltd. and Hope Realtech Pvt. Ltd. to the tune of Rs.2.15 crore, the assessee was summoned. However, the source of such amount was not explained in spite of opportunity being given to the assessee. Since the nature of receipt of money in his bank account and genuineness of the transaction and the financial profile of these two companies or their credit worthiness was not established, the reassessment proceedings initiated against the assessee was finalized by making addition in the hands of the assessee to the tune of Rs.2,57,50,930/- which was in turn confirmed by the First Appellate Authority, hence, the instant appeal before us.…

Legal Issues

• 1. Mandatory issuance of notice under Section 143(2) of the Act before reassessment proceedings under Section 148 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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