M/s Star Dealcom Pvt. Ltd. vs. ITO, Ward-3(1), Suri

Parties Involved

Facts Summary

The assessee, M/s Star Dealcom Pvt. Ltd., filed a return of income on 30.09.2011 declaring a total income of Rs. 12,980/-. The case was processed by the Central Processing Centre (CPC) on 23.01.2012. Subsequently, the Assessing Officer (AO) received information from the Directorate of Detection of Income Tax Evasion (DDIT) that the assessee had received Rs. 15.00 lacs from Hector Dealers Pvt. Ltd., a shell entity. The case was reopened under section 147 of the Act, and the assessee was issued a notice under section 148 of the Act on 30.03.2018. The assessee filed a return on 14.09.2018, and statutory notices were issued. The AO treated the amount received from Hector Dealers Pvt. Ltd. as unexplained income and added it to the assessee's income. The appellate authority confirmed the addition. The assessee argued that the reopening of the assessment was without any valid basis and that the AO did not independently verify the information received from DDIT.…

Legal Issues

• 1. Whether the reopening of assessment initiated on the basis of information from the Investigation Wing without any independent application of mind is valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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