2016 (9) TMI 254

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..... rged in this appeal is as to the correctness of the order of the Income Tax Appellate Tribunal (ITAT) rejecting the assessee's cross-objection. The brief facts are that the assessee is engaged in the business of finance, investment and trading of shares. Its assessment for AY 2001-02 completed under Section 143(3) of the Income Tax Act, 1961 [hereafter "the Act"] was sought to be reopened under p .....

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..... CLL 865230 10,00,000/- 10-FEB-01 TO CLEARING CONSTELL.C AP 865253 10,00,000/- In view of the totality of facts and findings of the investigation report, the person who have given credit entry in this case, have been proved to be men/parties of no creditworthiness. Therefore the aforesaid credit entries are squarely hit by section 68 of the IT Act. I therefore have reasons to believe .....

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..... e assessee's cross objection questioning the reopening of the assessment was, however, tersely dismissed without much discussion. It is urged by the assessee firstly that the requirements of proviso to Section 147(1), i.e. non disclosure by reason of failure on its part is not discernable in the reassessment notice having regard to the opinion of the AO. Learned counsel relied upon a Division Ben .....

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..... ing to persuade the AO to reopen the assessment and that the text of the statute in that regard as to the satisfaction that the assessee had failed to disclose particulars in the return which resulted in income escaping assessment, should be clear. In the present case, the opinion of the AO which is placed on the record discloses that his part of the order is entirely concerned with the transacti .....

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..... nion which led to the reopening of assessment nowhere shows that the assessee had in fact failed to report the transaction itself. In completely omitting to see this aspect, we are of the opinion that the ITAT fell into fundamental error of law. The question of law is accordingly answered in favour of the assessee and against the revenue. The appeal is accordingly allowed.
Case laws, Decisions .....

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