2023 (6) TMI 1275

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....ay of 302 days in filing of the appeal. A separate application for condonation of delay has been filed, wherein, it has been pointed out that the delay period was pertaining to Covid-2019 Pandemic period. In view of the directions of the Hon'ble Supreme Court in suo moto Writ Petition (C) No. 3 of 2020 dated 10.01.2022, the appeal is treated as filed within the limitation period. 3. The brief facts of the case are that the assessee company filed its return of income u/s 139(1) of the Act on 27.09.2011 showing a total income nil. The return was duly processed and accepted u/s 143(1) of the Act. Subsequently, an information was received that a search and seizure operation u/s 132 of the Act was conducted on Singhal group of companies at Raip....

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....s of Rs. 5,23,15,565/- as on 31.03.2011, which had earned the assessee company a dividend income of Rs. 46,138/-, which the assessee company had claimed as "exempt income" in the return filed in response to the notice u/s 148, but the Assessing Officer had not made any disallowance u/s 14A of the Act r.w.r. 8D of the I.T. Rules 1962. The ld. PCIT further observed from the assessment records that there have been certain increases in shares capital and sundry creditors in the balance sheet of the assessee, a part of which was apparently invested by the assessee company in unquoted shares during the F.Y 2010-11. The ld. PCIT observed that the assessment was completed by the Assessing Officer without making additions on the aforesaid issues. He....

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....ought to revise only that part of the assessment order, the subject-matter of which had nothing to do with that item of income, in such a case, doctrine of merger did not apply and that the period of limitation would commence from the date of original assessment and not from the reassessment since the latter had not anything to do with the said item of income. In the case in hand also the assessment was reopened on a particular issue of having received of Rs. 10,00,000/- as accommodation entry from entry provider, whose statement was recorded in a search action exercised in the case of some third party. The Assessing Officer examined that particular issue and made addition in respect of the said entry received by the assessee. The issue rel....