Tropex Promotion and Tradings Ltd. vs Commissioner of Income Tax

The learned counsel for the petitioner has relied on Income tax Officer, Calcutta and Others Vs. Lakhmani Mewal Das, ; M/s. Phool Chand Bajrang Lal and another Vs. Income Tax Officer and another, . On the contrary, the learned counsel for the respondent has relied upon Mahavir Woollen Mills Assessee Vs. Commissioner of Income Tax,

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 u/s 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 ?

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 u/s 68 of the Income Tax Act, 1961, in its reassessment to Income Tax u/s 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.