Sear Trading Private Ltd. vs. ACIT, CC-7(2)

Parties Involved

Facts Summary

The assessee, Sear Trading Private Ltd., filed an appeal against the order of the Commissioner of Income Tax (Appeals) / National Faceless Appeal Centre (NFAC), Delhi for Assessment Year 2012-13. The assessee challenged the reopening of assessment by the Assessing Officer (AO) under section 147 of the Income Tax Act, 1961, and the addition of INR 69,28,00,000/- as unexplained cash credits. The AO had reopened the assessment based on information from the Director of Direct Taxes (Investigation) that significant transactions were recorded in the assessee's Savings Account with M/s Angel Commodities Broking Pvt. Ltd. The assessee did not respond to notices and summons issued by the AO, leading to the addition under section 68 of the Act. The CIT(A) upheld the addition in an ex-parte order, which the assessee appealed against. The Tribunal allowed the appeal for statistical purposes and directed the CIT(A) to give the assessee another opportunity to present its case.…

Legal Issues

• 1. The legality of the action taken by the ACIT under section 147 r.w.s 148 of the LT. Act, 1961.
• 2. The addition of INR 69,28,00,000/- as unexplained cash credits.

Judgment Outcome

Decided in favour of Assessee.

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