Sanjay Kumar Drolia Vs ITO Ward-49(1), Kolkata

Parties Involved

Facts Summary

The assessee, Sanjay Kumar Drolia, filed his original return of income for the Assessment Year 2015-2016 declaring a total income of Rs.9,11,110/-. The Assessing Officer received information that the assessee was involved in facilitating accommodation entries through bogus billing and unsecured loans to beneficiary companies in exchange for commission. Based on this, the AO issued a notice under section 148 of the Income Tax Act, 1961. The assessee filed a return under protest and provided all required details and documents. The AO issued a show cause notice to add back commission income of Rs.21,95,975/- to the assessee’s total income. The assessee argued that this income pertained to M/s. Silverpoint Infratech Ltd., a separate legal entity, and had already been included in its total income. The CIT(A) affirmed the AO’s decision, leading the assessee to file an appeal before the Tribunal.…

Legal Issues

• 1. Whether the Assessing Officer was justified in reopening the assessment without supplying the copy of reasons for reopening.
• 2. Whether the addition of commission income by the Assessing Officer is sustainable.

Judgment Outcome

Decided in favour of Assessee.

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