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2008] 306 ITR 47 [2008] 173 TAXMAN 399 (DELHI) HIGH COURT OF DELHI Commissioner of Income-tax* v. Mokul Finance Ltd. MADAN B. LOKUR AND V.B. GUPTA, JJ. IT APPEAL NO. 600 OF 2007 â-  APRIL 3, 2008 Section 147, read with sections 2(22)(e) and 143, of the Income-tax Act, 1961 - Income escaping assessment - Non-disclosure of primary facts - Assessment year 1996-97 - Assessing Officer sought to reopen assessment proceedings under section 147/148 on ground that assessee had received certain loan from 'M' Ltd., which was really in nature of deemed dividend under section 2(22)(e) and, thus, said amount had escaped assessment under section 143(3) - Tribunal, however, set aside reassessment proceedings - On appeal, it was noted that books of account of assessee were produced on more than one occasion before Assessing Officer wherein it was mentioned that certain amount was received by assessee as an unsecured loan from 'M' Ltd. - Tax audit report was also filed - Besides, Tribunal noted that revenue was not able to point out any material, that could have bearing on applicability of section 2(22)(e), which was not furnished by assessee - Whether, in view of above, Tribunal had rightly held that initiation of reassessment proceedings was without any justification - Held, yes FACTS The Assessing Officer sought to reopen the assessment proceedings under section 147/148 on the ground that the assessee had received certain loan from 'M' Ltd., which was really in the nature of deemed dividend under section 2(22)(e ) and, thus, said amount of dividend had escaped assessment made under section 143(3). The Commissioner (Appeals) upheld the reopening of assessment. On second appeal, the Tribunal, however, set aside the reassessment proceedings. On revenue's appeal : HELD It was found from a perusal of order passed by the Tribunal that the original assessment was framed under section 143(3). The assessee was required to file the list of shareholders with the complete address as on 31-3-1996, which it did. The assessee also filed confirmation dated 29-2-1998 of 'M' Ltd. certifying its closing balance. The confirmation given by 'M' Ltd. also mentioned its PAN and Circle where it…

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