Facts of the case:
- For the Assessment Year 2010-11, the Assessee company's income was assessed under section 143(3).
- Later, in a report of Auditor (after completion of assessment) it was observed that claims made by assessee towards placement fees paid to its subsidiaries, advertisement expenses and donations paid to a charitable trust under section 80G were prima facie bogus.
- The Assessee also could not substantiate their genuineness by providing relevant documents and evidences.
- Thus, a reassessment notice was issued against assessee.
- The Assessee later approached the High Court Of Bombay. The High Court, by its order held that since special audit report was a fresh tangible material which formed basis of Assessing Officer's reasonable belief that income chargeable to tax had escaped assessment, reassessment notice issued on basis of same was justified.
- Aggrieved by the impunged order of the High Court, the assessee filed a Special Leave Petition with the Supreme Court Of India.
Judgement:
The Honorable Supreme Court Of India has held that the SLP filed against the order of the High Court was to be dismissed and it upheld the order of the High Court.