Urvara Agro Private Limited vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Urvara Agro Private Limited, filed a return under section 139 of the Income Tax Act, 1961, declaring a total income of Rs. 8,88,600 for the assessment year 2018-19. Prior to the proceedings, the assessing officer issued a notice under section 133(6) seeking information regarding investment in immovable property. The assessee responded with documents including computation of income, bank statements, memorandum of association, sales deed, and the ledger of vendor parties. However, the assessing officer was not satisfied and made an addition of Rs. 42,62,151 as unexplained investment under section 69B of the Act. The assessee appealed against this order passed by the National Faceless Appeal Centre, Delhi. The primary contention of the assessee was that the assumption of jurisdiction under section 148 of the Act was vitiated as the case was reopened based on an unverified Tax Evasion Petition (TEP).…

Legal Issues

• 1. Whether the reassessment proceedings initiated on the basis of an anonymous and unverified TEP are sustainable in law?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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