2016 (2) TMI 224

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....re-assessment order and consequential addition u/s. 68 of the Act. 2. Briefly stated, the relevant facts attending to this appeal, are that the original assessment of the assessee was completed u/s. 143(3) of the Act on 28.12.2007 at an income of Rs. 64,930/-. Subsequently, on the basis of information received from DIT(Inv.)-II, New Delhi vide letter dated 26.03.2012, proceedings u/s. 147/148 were initiated by issuing notice u/s. 148 on 27.03.2012. On the basis of above information, the AO recorded following reasons for initiating proceedings u/s. 147/148: "On perusal of records shows that the assessee M/s. Light Carts Pvt. Ltd. entered into a transaction at Rs. 62 lacs with Sh.Surendra Kumar Jain Group of cases on which search ....

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....rtain to the assessee and he did not admit its receipts from the company, M/s. Steller Investment Ltd., the share applicants. Detailed explanations were also furnished by the assessee, but the Assessing Officer was not satisfied with the same and therefore, made an addition of Rs. 62 lakhs u/s. 68 of the Act to the total income of the assessee vide order dated 22.03.2013 u/s. 143(3)/147 of the Act. The appeal filed by assessee against this re-assessment order, was dismissed by the ld. CIT(A), hence, this appeal by the assessee before us. 4. We have heard the rival submissions and have perused the materials available on record. 5. At the outset, the ld. Counsel for the assessee contended that the reassessment proceedings initiated agai....

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.... the authorities below. 6. We have considered the rival submissions and have perused the entire material available on record and we find substantial force in the contention of the ld. Counsel for assessee. It is born out on record that in the instant case, proceedings u/s 147 of the Act were initiated by the ld. AO after expiry of four years from the end of relevant assessment year, perhaps resorting to the proviso to section 147 of the Act which stipulates for as under: "Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unles....

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....d after four years from the end of assessment year cannot be said to be valid. Besides, there is no rebuttal from the side of Revenue of the assessee's contention that the share capital received by the assessee company of Rs. 48,00,000/- received from the shareholders was duly disclosed in the return of income and books of account which were duly examined by the AO at the time of original assessment proceedings. The balance sheet of assessee placed before us at page 6 of the paper book clearly shows the receipt of Rs. 48,00,000/- as share capital money for 960 Equity Shares of Rs. 1000/- each - Rs. 500/- per share called and paid up. The assessee had shown total receipts in its hands at Rs. 51.30 lacs which consists of Rs. 48 lacs as share ....