In Brief
A private company received Rs. 6.25 crores in share capital from entities found to be controlled by an accommodation entry provider. The Assessing Officer, after discovering this through search operations, reopened the assessment for AY 2010-11. The High Court quashed the notice, reasoning that a third party (Garg Logistics) had declared the same amounts as undisclosed income under the Income Declaration Scheme, creating immunity. The Supreme Court reversed this, holding that immunity under the Scheme protects only the declarant for limited purposes and cannot shield a non-declarant assessee from taxation. Tangible material from search operations justified reopening. The Court set aside the High Court judgment and allowed the revenue's appeal, directing the Assessing Officer to complete reassessment.
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