M/s. KJL Developers (P) Ltd. vs. Deputy Commissioner of Income, Central Circle-31, New Delhi

Parties Involved

Facts Summary

The assessee, M/s. KJL Developers (P) Ltd., filed its return of income for the assessment year 2014-15 declaring an income of Rs.3,45,46,720/-. The return was later revised to declare an income of Rs.3,45,98,160/-. Following a search action conducted on 18.06.2013, the assessment was completed on 21.03.2016. Subsequently, a search action on 14.09.2017 in the Dalal Group of cases led to the seizure of documents pertaining to M/s. Cadillac Technobuild Pvt Ltd and M/s Pragya Enterprises Pvt Ltd (now merged with M/s KLJ Developers Pvt. Ltd). Based on these documents, proceedings under Section 153C read with Section 153A of the Income-Tax Act, 1961 were initiated against M/s KLJ Developers Pvt. Ltd for assessment years 2012-13 to 2018-19. The Assessing Officer issued notices and the assessee filed returns and provided clarifications. However, the Assessing Officer made additions to the assessee's income, leading to the filing of an appeal which was dismissed by the Commissioner of Income Tax (Appeals). The assessee then filed the present appeal.…

Legal Issues

• 1. Whether the Learned Commissioner of Income Tax (Appeals) erred in upholding the assumption of jurisdiction under Section 153C of the Act and framing of assessment under Section 153C/143(3) of the Act.
• 2. Whether the approval under Section 153D of the Act was valid.
• 3. Whether the addition of Rs. 4,65,00,000/- representing unexplained money was justified.
• 4. Whether the levy of interest under Sections 234 and 234B of the Act was correct.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Sri Sat Sahib Housing and Infrastructure Development company vs DCIT/ACIT

  Delhi Bench benchAY 2008-09, 2009-10, 2010-11Allowed

• Deputy Commissioner of Income Tax, Central Circle -31, New Delhi. Vs. M/s SRC Realtech Pvt. Ltd., M/s Pyramid Buildtech Pvt. Ltd., M/s SRC Buildtech Pvt. Ltd.

  Delhi Bench benchAY 2012-13Dismissed

• Colourful Estates Pvt. Ltd. vs DCIT

  Delhi 'B' Bench: New Delhi benchAY 2011-12 to 2012-13Allowed

• Allen Petrochemicals Pvt Ltd

  Delhi Bench ‘A’, New Delhi benchAY 2021-22Allowed

• Sh. Ram Ready Mix Concrete Pvt. Ltd. and Kamdhenu Cement vs DCIT

  Delhi Bench 'E', New Delhi benchAY 2018-19, 2019-20, 2020-21, 2021-22, 2022-23Allowed

• Sh. Sudesh Gahlot vs. DCIT

  Delhi Bench ‘A’ benchAY 2016-17Allowed