The assessee, Momentum Technologies Pvt Ltd is a company who filed its return of income declaring an income of Rs.421,835. It also revised its return of income declaring taxable income of Rs.1,014,894. Reasons behind revising return of income is stated to include 1% commission on account turnover in ICICI bank Ltd of app Rs. 59303873.
The assessee submitted that it has filed the original return and subsequently the revised return, which may be treated as, filed against the notice issued under section 148 of the income tax act. The assessee also asked for the reasons recorded for reopening of the assessment, which were provided by the AO.
The department vehemently supported the order of the learned assessing officer and submitted that the income offered by the assessee in the revised return cannot be accepted in absence of any information given by the assessee with respect to the trading activities conducted by it. Therefore, the amount of cash deposited in the bank account should have been confirmed by the CIT (A).
On the other hand the assessee urged that assessment order passed by the learned assessing officer also suffer from the deficiency of issuance of reopening of notice under section 148 within the time available for issuance of notice under section 143 (2) as reckoned from the revised return filed under section 139 (5) of the act.
The coram of Kul Bharat and Prashant Maharishi held that when the revised return is pending before AO, Time limit for picking that return for scrutiny is pending under section 143 (2) of the act, the AO could not have multiplied the proceedings and initiated proceedings under section 148 of the act.To Read the full text of the Order CLICK HERE