Assessee-company entered into a development agreement for acquiring development rights funded through an unsecured loan from its director. In the scrutiny assessment completed under section 143(3), the assessee disclosed all material facts, including the registered agreement and payments made through banking channels. Subsequently, Assessing Officer issued a notice under section 148A(b) alleging escapement of income on account of bogus transactions and, invoking section 68, held that the assessee failed to explain the ‘source of source’ of funds. On writ, the Court held that the assessee had explained the source of funds and all transactions were examined in scrutiny, and the requirement to explain ‘source of source’ under the proviso to section 68 was applicable only prospectively from 1-4-2023, and thus, the assessee could not be burdened with the requirement to explain the source of funds. In the absence of any failure to disclose material facts and as no income had escaped assessment, reassessment proceedings were invalid.\u00a0\u00a0 (AY. 2018-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Cash credits-Development agreement for acquiring development rights funded through unsecured loan from its director-No failure to disclose material facts-Reassessment notice and consequential orders were quashed. [S.68, 143(2), 148, 148A(b), 148A(d), Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65319","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gZx","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65319"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65319\/revisions"}],"predecessor-version":[{"id":65320,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65319\/revisions\/65320"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}