DCIT, Central Circle-4(2), Kolkata Vs. Balajee Vinimay Pvt. Ltd.

Parties Involved

Facts Summary

The assessee, Balajee Vinimay Pvt. Ltd., filed its return of income under section 139(1) of the Income Tax Act on 22.09.2014 declaring a total income of Rs.10,96,073/-. A search action under section 132 of the Act was conducted on 11.02.2020 and subsequent dates on the 'Rika-Lalwani-Patodia-Prakash Group' of cases to which the assessee is a related entity. A notice under section 153A of the Act was issued on 12.07.2021, which was duly served. The assessee complied with the notice by filing a return of income on 30.07.2021 declaring the same total income. The impugned assessment is an unabated assessment as there were no pending proceedings and the time period prescribed under the Act for issuing a notice under section 143(2) had expired. The Assessing Officer (AO) made two additions to the income of the assessee: (i) in respect of share capital/share premium of Rs.4,08,45,000/- and (ii) in respect of profit for the sale of investment of group companies of Rs.3,00,140/- under section 68.…

Legal Issues

• 1. Whether the AO has jurisdiction to make additions in an unabated assessment without any incriminating materials seized during the search.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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