North India Wires Limited Vs. DCIT, Circle 3(1), Kolkata

Parties Involved

Facts Summary

The return was filed on 29.03.2013, declaring total income of Rs.3,04,06,700/-. The assessee is engaged in the business of manufacturing LPG Cylinders. The case of the assessee was selected for scrutiny and assessment was framed vide order dated 23.12.2015 u/s 143(3) of the Act, assessing the total income of ₹3,32,92,260/-. The case of the assessee was reopened u/s 147 of the Act, by issuing notice u/s 148 of the Act dated 05.04.2018, which was complied with by the assessee by filing the return of income on 24.11.2018 with returned income of ₹3,04,06,700/-. Thereafter the statutory notices were issued along with questionnaire, which were replied by the assessee. The Assessing Officer finally made the addition of ₹19 lacs on account of loan creditors which according to the ld. AO remained unexplained in the assessment framed u/s 147/143(3) dated 06.12.2018.…

Legal Issues

• 1. Challenge to the reopening of assessment u/s 148 of the Act.
• 2. Challenge to the addition of Rs.19 lacs made by the Assessing Officer u/s 68 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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