Neena Commercial Pvt. Ltd. Vs. ACIT(OSD), Ward-1(2)

Parties Involved

Facts Summary

The assessee, Neena Commercial Pvt. Ltd., filed a return of income on 29.09.2010. The Assessing Officer (AO) received information from the Director of Income Tax (Investigation) indicating that large cash deposits were made in ICICI Bank branches in Kolkata and transferred to Neena Commercial Pvt. Ltd.'s accounts. The information also suggested that the company received accommodation entries amounting to ₹15 lacs. Consequently, the case was reopened under section 147 of the Act by issuing a notice under section 148 after recording reasons under section 148(2). The assessee complied with the notice, but no addition was made regarding the ₹15 lacs. However, the AO made an addition of ₹6,38,81,102/- on account of the sale of shares of paper companies as unexplained cash credit.…

Legal Issues

• 1. Whether the AO has the jurisdiction to make any addition when no addition was made for the escaped income as per the reasons recorded.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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