Dona Builders Pvt Ltd Vs. DCIT, Circle 1(3)(1), Mumbai

Parties Involved

Facts Summary

Dona Builders Pvt Ltd, engaged in real estate development, filed its return of income for the assessment year 2009-10. The Assessing Officer received information alleging that the assessee had obtained accommodation entries in the form of unsecured loans and share application money from entities controlled by Shri Praveen Kumar Jain. Based on this information, the Assessing Officer issued a notice under section 148 and made additions under section 68 of the Income-tax Act, 1961. The assessee contested these additions, claiming that the loans and share application money were genuine and supported by documentary evidence. The Commissioner (Appeals) upheld the additions, leading to these appeals.…

Legal Issues

• 1. Validity of reopening of assessment under section 147 of the Income-tax Act, 1961.
• 2. Addition of ₹20,00,000/- made on account of alleged receipt of share application money from M/s. Sumukh Commercial Pvt. Ltd.
• 3. Addition of ₹1,60,00,000/- made under section 68 of the Income-tax Act, 1961, on account of unsecured loans.

Judgment Outcome

Decided in favour of Assessee.

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