2010 (8) TMI 451 - ITAT, JAIPUR

Reopening of the assessment - Income escaping assessment - Search and seizure - The Hon’ble Madras High Court referred to the decision of Hon’ble Delhi High Court in the case of KLM Royal Dutch Airlines v. Asstt. DIT [2007 -TMI - 13420 - DELHI High Court ] - Held that reopening is valid and reasons have nexus with belief in respect of escapement of income - Decided in the favour of the revenue

Addition - It is not the case of the revenue that the persons in whose names bank account were found were not existing or such persons have made deposits in the companies which provided share capital to the assessee-company - There is no material on record that entries in the books of account of such companies were incorrect or false - Hence in absence of any adverse material, the Assessing Officer could not have made addition under section 68 of the Act - Decided in the favour of the assessee

Regarding interest - Kerala High Court in the case of Kerala Chemicals & Proteins Ltd. [2010 -TMI - 76873 - KERALA HIGH COURT] in which it has been held that interest under section 234D is to be charged from the period 1-6-2003 till the completion of regular assessment - Decided in the favour of the revenue - In the result, the appeals of the assessee in both the assessment years are treated as partly allowed