Sumangal Jewels Private Limited vs. DCIT, Central Circle 4(3), Kolkata

Parties Involved

Facts Summary

The facts in brief are that the search and seizure action as well as survey operation were conducted on 01.12.2025 on Bhalotia Group of Companies as well as residential premises of Director/partners at different places at Raniganj, Asansol, Durgapur, Dhanbad, Delhi and Kolkata. The assessee M/s Sumangal Jewels Pvt. Ltd. being one of the group companies of the assessee was covered under the survey action. The AO noted in paragraph 2 of the assessment order that due to some specific findings during survey/search the AO has reasoned to belief that income of the assessee has escaped assessment. Consequently, the assessment was reopened u/s 147 by issuing notice u/s 148 of the Act on 22.03.2016. The assessee complied with the said notice by submitting before the AO that return of income filed u/s 139(1) of the Act may be treated as return in response to notice u/s 148 of the Act. Pertinent to state that the assessee filed return of income u/s 139(1) of the Act on 10.08.2009 declaring total income at Rs. 'Nil'. Thereafter, the notices along with questionnaire were issued and finally the addition of Rs. 10,00,000/- was made u/s 68 as unexplained cash credit in respect of share capital raised by the assessee during the year. The Ld. CIT(A) confirmed the order of AO in the appellate proceedings.…

Legal Issues

• 1. Whether the Ld. Commissioner of Income Tax (Appeals), Kolkata-27 failed to appreciate that none of the conditions precedent existed and/or have been complied with and/or fulfilled by the Ld. Deputy Commissioner of Income Tax, Central Circle 4(3), Kolkata for his alleged assumption of jurisdiction u/s. 147 of the Income Tax Act, 1961 in the facts and circumstances of the instant case.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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