Suresh Kumar Banthia vs DCIT, CC 4(3), Kolkata

Parties Involved

Facts Summary

The case involves an appeal by the Revenue and a cross-objection by the assessee against the order of the Commissioner of Income-tax (Appeals), Kolkata, dated 31.03.2025 for the Assessment Year 2016-17. The original assessment was completed on 31.12.2018 under section 143(3)/153A. A search was conducted on finance brokers Kasera and Sanwaria on 30.11.2018, during which some documents were seized. A survey was conducted on the assessee and his group concern, Citizen Umbrella Mfg Co Ltd, on 19.02.2020, where some papers were impounded. The assessee admitted to giving an initial loan of Rs. 1.60 crores in FY 2016-17, which was rotated periodically. However, the assessee retracted this statement within three days. The assessment was reopened under section 148 on 26.03.2021, and the Assessing Officer (AO) made an addition of Rs. 36.65 crores as cash loans under section 69A of the Act and Rs. 1,64,92,500/- as interest earned.…

Legal Issues

• 1. Validity of the reassessment proceedings initiated under section 147 of the Act instead of section 153C.
• 2. Deletion of the addition of cash loans amounting to Rs. 36.65 crores under section 69A of the Act.
• 3. Deletion of the addition of interest income of Rs. 1,64,92,500/- under section 69A of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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