Wachovia Marketing Pvt. Ltd., the appellant, contests the reassessment order for the assessment year 2011-12 issued by the Income Tax Officer, Ward-27(2), New Delhi. This appeal challenges the legitimacy of the reassessment proceedings initiated under section 147 of the Income Tax Act.
The core issue revolves around the application of section 147 for reassessment, prompted by the information from the investigation wing about possible tax evasion involving accommodation entries. The appellant argues that the reassessment was initiated without proper legal basis and that the reassessment notice under section 148 was not justified, claiming that the procedures mandated under section 153C should have been followed instead.
During the tribunal hearing, the appellant contended that the reassessment proceedings were initiated contrary to the laws and were void ab initio. The tribunal examined these claims against the procedural backdrop provided by sections 147 and 153C of the Income Tax Act. The decision elaborated on the specific conditions under which reassessment can be initiated and the judicial precedents surrounding such cases.
The tribunal’s decision to uphold the reassessment by the Income Tax Officer suggests a stringent interpretation of the Income Tax Act’s procedural requirements for reassessment. This case underscores the complexities involved in the reassessment processes and the critical nature of adhering to the prescribed legal standards.
Order pronounced in the open court on this 31st Day of August, 2022.
Analysis of ITA 847/DEL/2020: Wachovia Marketing Pvt. Ltd. vs. ITO Ward-27(2) – Reassessment Dispute
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