SRS IT SOLUTIONS P. LTD. Vs. DCIT, Central Circle-II, Faridabad

Parties Involved

Facts Summary

The case involves SRS IT SOLUTIONS P. LTD., which was subjected to search and seizure operations on 09.05.2012 by the Director of Income Tax (Investigation), Delhi. The assessee received share capital during the period relevant to assessment year 2008-09 from companies that had received share capital from Kolkata based paper/briefcase companies. The Assessing Officer (AO) issued a show cause notice on 27.01.2015 and 30.01.2015, proposing an addition of Rs. 1,27,05,000/- to the assessee's total income under section 153A of the Income Tax Act, 1961. The assessee filed an appeal before the Commissioner of Income Tax (Appeals)-2, Gurgaon, which was dismissed. Aggrieved by this, the assessee appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Assessing Officer erred in assuming jurisdiction and issuing a notice under section 153A of the Act.
• 2. Whether the assessment framed under section 153A(1)(b) of the Act is bad in law.
• 3. Whether the addition of Rs.1,27,05,000/- on account of share capital received by the company is valid.
• 4. Whether the action of the Assessing Officer in making the addition is bad in law.
• 5. Whether the Assessing Officer passed the impugned order without giving adequate opportunity of being heard.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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