Rising Stock Trade Pvt. Ltd. vs. ITO

Parties Involved

Facts Summary

Rising Stock Trade Private Limited, a company dealing in shares and securities, filed its original return of income for the assessment year 2012-13, declaring a business loss of Rs. 22,25,060. The assessment was reopened under Section 148, and an addition of Rs. 10,00,000/- was made under Section 68 of the Income Tax Act, 1961, alleging that the loan received from Aditi Gems Pvt Ltd was a bogus transaction. The assessee appealed against this order, arguing that the loan was genuine and that the addition was made without proper evidence or opportunity for cross-examination. The Tribunal considered the arguments and decided to restore the matter to the file of the Assessing Officer for further investigation.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer under Section 68 is justified.
• 2. Whether the reopening of the case under Section 147 is justified.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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