Pack Plast India Pvt. Ltd. vs. Deputy Commissioner of Income Tax, Central Circle-25, New Delhi

Parties Involved

Facts Summary

The assessee, Pack Plast India Pvt. Ltd., was found to have taken bogus accommodation entries from Mr. Alok Kumar Agarwal and his controlled allies/entities. The Assessing Officer (AO) reopened the case under Section 153C of the Income Tax Act, 1961, and issued notices to the assessee. The assessee filed returns of income for the relevant years. During the search, incriminating documents were found, and the AO made additions to the assessee's income under Sections 68 and 69C of the Act. The assessee appealed before the CIT(A), which dismissed the appeal. The assessee then appealed to the Tribunal, raising several grounds of appeal related to the procedural flaws and mechanical approval under Section 153D of the Act.…

Legal Issues

• 1. Whether the notice issued and the assessment order passed under Section 153C of the Income Tax Act, 1961, by the Assessing Officer are fundamentally flawed.
• 2. Whether the approval granted under Section 153D of the Act was mechanical and without independent application of mind.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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