M/s Keynesian Financial Services Ltd. vs. DCIT, Circle-7(1)

Parties Involved

Facts Summary

The assessee, M/s Keynesian Financial Services Ltd., filed its return of income on 21.09.2013, declaring a total income of ₹ 84,930/-. The assessee was engaged in financing and dealing in shares and securities. The case was reopened under section 147 of the Act after the Assessing Officer received information that the assessee had brought back unaccounted funds into its books of account from bogus sales of shares of private companies. The Assessing Officer treated the consideration received from the sale of unlisted equity shares worth ₹63 lacs as unexplained cash credit under section 68 of the Act, stating that the assessee could not produce the details of transactions and case laws in its favor. The assessee's appeal was dismissed by the CIT (A) for non-prosecution but was also dismissed on merits.…

Legal Issues

• 1. Invalid reopening of assessment under section 147 of the Act on the basis of borrowed satisfaction and without any application of mind by the Assessing Officer.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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