Rahul Premier India Agency Pvt. Ltd. vs. DCIT, Circle-4(1), Kolkata

Parties Involved

Facts Summary

The assessee, Rahul Premier India Agency Pvt. Ltd., filed a return of income on 26.09.2013 declaring a loss of Rs. 7,04,798/-. The case was reopened under section 147 of the Act after recording reasons to believe under section 148(2) of the Act. The Assessing Officer (AO) noted that the assessee had taken an unsecured loan from M/s Nikhil Holding Pvt. Ltd., which is a shell company as accepted by the director of the company. The AO issued a notice under section 148 of the Act after obtaining approval from the competent authority. The assessee complied by filing a return of income on 31.07.2020. The AO made an addition of Rs. 40,00,000/- under section 68 of the Act. The order was challenged before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, which dismissed the appeal on legal and merit grounds.…

Legal Issues

• 1. Confirmation of reopening of assessment by the Ld. CIT(A) even when the pre-conditions as laid down u/s 147 of the Act were not satisfied.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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