Stream Suppliers Pvt. Ltd. Vs. ITO, Ward-7(1), Kolkata

Parties Involved

Facts Summary

The assessee, Stream Suppliers Pvt. Ltd., is a domestic company that filed its return of income showing a total income of ₹1,62,100/- on 12.10.2016. The Assessing Officer (AO) disallowed a loss of ₹1,49,38,316/- claimed by the assessee on non-genuine reversal trade in illiquid options and added commission of ₹2,98,766/- as unexplained expenditure. The AO assessed the total income of the assessee at ₹1,53,99,182/-. Aggrieved by this order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)-NFAC, Delhi (CIT(A)), which was dismissed due to non-compliance with notices. The assessee then filed an appeal before the Tribunal, arguing that the CIT(A) did not consider the merits of the case and that the proceedings were ex parte due to the Chartered Accountant's failure to represent the matter properly.…

Legal Issues

• 1. Validity of the notice issued under Section 148 of the Income Tax Act, 1961.
• 2. Whether the notice under Section 148 is barred by limitation.
• 3. Jurisdictional validity of the notice under Section 148.
• 4. Denial of procedural fairness in the assessment proceedings.
• 5. Mechanical assessment based on unverified SEBI orders.
• 6. Jurisdictional issue due to transfer of registered office.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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