TaxTMI 
TaxTMI 
2019 (8) TMI 460
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....OF THE INCOME TAX ACT, 1961. The assessee filed its return on 30.09.2012 declaring total income of Rs. 2200. The return was processed u/s 143(1) of the Income-tax Act, 1961 (herein after "the Act") on 22/02/2013. As per Memorandum of Association, the main object of the company was to carry on business of developers, builders, masonary, general construction contractor etc. However, on perusal of return of income and profit & loss account, no such business activity found to be carried out by the assessee. 2. The case of the assessee was selected for scrutiny under CASS for AY 2013-14 on the reason of Large increase in unsecured loans. During the course of the assessment proceedings for this AY, notices u/s 133(6) were issued to 10 loan cr....
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....ning of assessment. Such objections were however rejected by an order dated 31.5.2019. Hence, the petition. 3. At the outset, we may record that the return filed by the petitioner to the said A.Y. 2012-13 was accepted u/s 143(1) of the Income Tax Act ("the Act" for short), without scrutiny. In that view of the matter, as is settled through a series of judgments of the Supreme Court and this Court, the Assessing Officer had much wider latitude in reopening the assessment if he had tangible material at his end to enable him to form a belief that income chargeable to tax has escaped assessment, he could by recording reasons, issue notice for such reassessment. Reference in this regard, can be made to the judgments of the Supreme Court in the ....
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....reply in connection with the said loans of Rs. 10.27 crores. The Assessing Officer had verified the return of the income of the assessee for the said Assessment Year 2012-2013 and found that the assessee had disclosed having received unsecured loans of Rs. 10.27 crores. According to the Assessing Officer, this would show that the assessee had received unexplained cash credit of Rs. 10.27 crores in terms of section 68 of the Act. He, therefore, had reason to believe that the income chargeable to tax had escaped assessment. 5. We do not find that the reasons recorded by the Assessing Officer are such that it can be stated that the reasons lacked validity. The learned Counsel for the petitioner however submitted that the petitioner had made f....