ITA No. 2309/KOL/2024 & CO No. 4/KOL/2025

Parties Involved

Facts Summary

The assessee, M/s Delightful Estate Developers LLP, filed a return of income on 21.07.2017 declaring total income at ₹ nil. A search action conducted on 25.05.2018 in the case of Banka Group of companies revealed that Mukesh Banka and associated entities were engaged in providing accommodation entries, with the assessee being a beneficiary to the tune of ₹68,00,224/-. Consequently, the case of the assessee was reopened u/s 147 of the Act by issuing a notice u/s 148 on 31st March, 2021. The assessee complied by filing a return of income on 02.04.2021. The Assessing Officer (AO) issued statutory notices and added ₹68,00,224/- as unexplained cash credit and ₹4,89,233/- as bogus interest to the assessee's income. The Commissioner of Income-tax (Appeals) [CIT(A)] allowed the assessee's appeal on merit but did not adjudicate the legal issue, leading to the current appeals.…

Legal Issues

• 1. Validity of reopening of assessment u/s 147 of the Act based on vague reasons.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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