SUNRISE BROKING PRIVATE LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The petitioner has challenged a notice of reopening of the assessment dated 31.3.2016 issued by the respondent Assessing Officer to reopen the petitioner's assessment for the assessment year 2009-2010.

(2.) Brief facts are as under. The petitioner is a private limited company and is engaged in the business of brokerage. For the assessment year 2009-2010, the petitioner had filed return of income on 29.9.2009 showing the total income of Rs. 5.75 lacs (rounded off). The return was processed under section 143(1) of the Act and accepted without scrutiny. To reopen such assessment, the Assessing Officer issued the impugned notice. In order to do so, he had recorded the following reasons :

(3.) The assessee raised the objections to the notice of reopening under communication dated 19.9.2016. It was contended that the amount received from M/s. C. D. Integrated Services Ltd. cannot be treated as a deemed dividend under section 2(22)e of the Act. Decisions of various High Courts were cited for such purpose. It was therefore, contended that reasons themselves lack validity.