Aadi Real Estate Developers P.L. vs ITO

Parties Involved

Facts Summary

The assessee, Aadi Real Estate Developers Pvt. Ltd., had filed its return of income for the Assessment Year 2013-14 declaring Nil income. Subsequently, the Assessing Officer received information that the assessee had received an accommodation entry from a shell entity operated by one Shri Jignesh Shah. The case was reopened under Section 147 of the Income Tax Act, 1961, and a notice under Section 148 was issued on 28.03.2021. The assessee did not comply with the notices, and the assessment was completed ex-parte under Section 147 r.w.s. 144 of the Act on 28.03.2022, resulting in an addition of Rs.2,00,00,000/-. The assessee filed an appeal against the order of the First Appellate Authority, which was dismissed by the Ld. CIT(A). The assessee is now in second appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in law and in the facts of the case in confirming the order of the AO in reopening the case u/s.147 of the Act.
• 2. Whether the Ld. CIT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs.2,00,00,000/- under Section 69A of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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