Sharvah Multitrade Co. Pvt. Ltd. v. ITO (Bombay High Court)

Court: Bombay High Court
Head Notes:

S. 147 : Reassessment-Reasons recorded-Sanction-Non-application of mind-Strictures-CBDT to formulate a Scheme to train officers for recording reasons-Commissioners to not to grant sanction in a mechanical manner-Reassessment proceedings quashed. [S. 148, 151, Art. 226]

Allowing the writ petition the Court held that where the recorded reasons suggested that the assessee received bogus accommodation entries from itself, it was a clear case of non-application of mind in forming the recorded reasons for reopening. The High Court has suggested that the CBDT could formulate a scheme to train officers for applying their mind in recording the reasons. Further, the CBDT to advise the concerned Commissioners to not grant approval under section 151 of the Income-tax Act, 1961 in a mechanical manner. Reassessment Proceedings quashed. (WP No. 3581 of 2021 dt. 20-12-2021)


Section(s): 148
Counsel(s): Mr. Rohan Deshpande, Advocate
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Date of upload: January 14, 2022
One comment on “Sharvah Multitrade Co. Pvt. Ltd. v. ITO (Bombay High Court)
  1. KEEN OBSERVER says:

    Well how much the above shall be followed or need to be followed in NEW REGIME.
    Already the protection to assessee of hundreds of case laws has evaporated with thousands fighting in Courts for april to june 2021 notices.
    The type of reasons recorded etc and supplied to assessee would have made him romp home.But the scenario seems changed as appears till date.
    The Courts are suggesting to recourse to sec 148A and the appellant are both less than and more than 50 lakh matters and appeal seems disposed in a consolidated manner.
    Another bout till matter reaches courts as AO,CIT (A),ITAT wont or cant interfere as Courts held to recourse to 148A.
    Next week also Courts orders are expected.
    It is high time to ponderin view of above judgement, was not approaching Courts would have been better proposition for maximun number of assessees. AL PROTECTION GONE IN NEW REGIME.

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