Tropex Promotion & Tradings Ltd. vs Cit
2002 Latest Caselaw 59 Del

ORDER

The learned counsel for the petitioner has relied on ITO v. Lakhmani Mewal Das (1976) 103 ITR 437 (SC) & Phool Chand Bajrang Lal v. ITO (1993) 203 ITR 456 (SC). On the contrary, the learned counsel for the respondent has relied upon Mahavir Woollen Mills v. CIT (2000) 245 ITR 297 (Delhi).

2. In our view, the following questions arise for consideration :

2. In our view, the following questions arise for consideration :

"1. Whether, on the facts of the case borne on the record, the Appellate Tribunal was right in law in upholding the legal validity of the action of the assessing officer in initiating reassessment proceedings against the assessed-appellant company for the assessment year 1986-87 under section 147/148 of the Income Tax Act, 1961 for its escapement of assessment on its alleged income of Rs. 76,61,408 on the basis of the observations/ statements of the assessing officer in the note recorded by him under the provisions of sub-section (2) of section 148 of the Act by way of the reasons for initiating the reassessment proceedings ?

2. Whether, on the facts of the case borne on the record, the Appellate Tribunal was right in law in upholding the assessment of the assessed-appellant company under section 68 of the Income Tax Act, 1961, in its reassessment to income-tax under section 147/148 of the Act for the assessment year 1986-87 on an amount of Rs. 75 lakhs, being the amount received by it from the subscribers to its additional share capital raised in its rights issue during the relevant previous year, duly accounted for in its books and shown as such in the audited balance sheet of the said year, on the reasoning that the assessed-company had failed to prove the identity of the share subscribers and their creditworthiness

Admit.