Aviral Marketing Pvt. Ltd. vs. DCIT, Circle-4(1), Kolkata

Parties Involved

Facts Summary

The assessee, Aviral Marketing Pvt. Ltd., filed a return of income on 27.09.2012 declaring a total loss of Rs.47,11,358/-. The case was reopened under section 147 of the Income Tax Act, 1961, after the Assessing Officer received information from ADIT(Inv.), Unit-3(1), Kolkata, that the assessee had taken an accommodation entry of Rs.1,00,00,000/- during the relevant assessment year. A notice under section 148 was issued on 20.03.2019, and the assessee filed a return of income on 29.04.2019 declaring the same loss. The Assessing Officer rejected the assessee's plea and made an addition of Rs.1,00,00,000/- under section 68 in respect of money received from M/s Startrack Vinimay Pvt. Ltd. The appeal was dismissed ex parte by the ld. CIT(A), but the issues were dealt with on merits.…

Legal Issues

• 1. Invalid reopening of assessment under section 147 of the Income Tax Act, 1961.
• 2. Validity of the reassessment and consequent assessment.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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