2017 (3) TMI 1389

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....r the Respondent : None ORDER The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) which affirmed the CIT(A)'s order, setting aside an addition of Rs. 1 crore made by the Assessing Officer (AO) in the circumstances of the case. The assessee's returns for AY 2003-04 were sought to be reopened upon an information received from the Investigation Wing. After reassessm....

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....e as per SC case in Kelvinator (India) Ltd. the AR further explained that the deposits were received by cheque and refunded to those parties the Miller Traders Pvt. Ltd. and Mayank Services Ltd. after 2-3 years. The details which are given by the appellant is annexed to this order. The company was trying to modernize the Appu Ghar at Pragati Maidan under the name International Amusement Ltd. for w....

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....tice or in not giving the assessee an opportunity of being heard which is the basis requirement of law. Hence addition of Rs. 1 crore is deleted." The ITAT concurred with the CIT(A)'s order. Learned counsel urges that the ITAT fell into error in holding that there was sufficient material to justify the reassessment notice. It is submitted that reliance placed upon the Investigation Wing's repor....

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.... moment, if the Revenue is correct that the information which is sourced through Investigation Wing to justify a reassessment, ipso facto that was not sufficient to conclude assessment under Section 144. The AO was granted opportunity, not merely at the stage of reassessment but also during the appellate proceedings in the remand when it was possible to verify whether the investments were genuine ....