M/s Fairdeal Information Technology Private Limited vs. Income Tax Officer, Ward-9(1), New Delhi

Parties Involved

Facts Summary

The assessee, M/s Fairdeal Information Technology Private Limited, filed its return of income declaring total income of Rs.5,81,730/-. The case was re-opened u/s 147 by way of issue of notice u/s 148 of the Income Tax Act, 1961. The Assessing Officer made an addition of Rs.13,58,00,000/- u/s 68 of the Act towards unexplained cash credits. The CIT(A) allowed part relief by deleting additions of Rs.1,58,00,000/- on account of loans received but confirmed additions of Rs.12,00,00,000/- as consideration from the sale of shares. The assessee filed the present appeal on various grounds including violation of natural justice and incorrect application of Section 68.…

Legal Issues

• 1. Validity of reassessment proceedings and notice u/s 148 of the Act.
• 2. Justification of addition of Rs. 12,00,00,000/- as unexplained cash credit.
• 3. Violation of principles of natural justice in passing the order.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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