Latest Income-Tax Details

For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

Viewed in the light of the above discussion, it is seen that reassessment in this case was initiated on the ground of bogus purchases and the addition on that score has been sustained hereinabove with a direction to the AO for recomputing the same in accordance with the law laid down by the Hon'ble Bombay High Court inPrincipal CIT vs. Mohommad Haji Adam & Co.(supra). Once the reassessment proceedings are held to be validly initiated, we fail to find any eclipse on the powers of the AO in making addition towards any other income that escaped earlier assessment and came to his notice in the course of the assessment proceedings under s. 147.

Shanti Prime Publication Pvt. Ltd.

Sec. 36 of Income-tax Act, 1961— Business Expenditure— Assessee did not have any interest-free funds available at its disposal which could have been used for making investments for non-business purpose and to that extent, the disallowance of interest pertaining to the Investments made in relation to properties meant for non-business purpose, is rightly called for - DEVI CONSTRUCTION CO. V/s DY. CIT - [2020] 207 TTJ 130 (ITAT-PUNE)