The Hooghly Mills Company Ltd. Vs. DCIT, Circle -1(2), Kolkata

Parties Involved

Facts Summary

The assessee, The Hooghly Mills Company Ltd., filed a return of income on 30.09.2008, declaring total income of ₹Nil. The case was selected for scrutiny and an assessment order under section 143(3)/154 of the Act dated 19.06.2014 was passed, assessing a total loss of ₹10,00,66,405/-. Subsequently, the case was reopened under section 147 of the Act by issuing a notice under section 148 on 31.03.2015. The assessment was framed ex-parte under sections 144/147 of the Act on 31.03.2016, making an addition of ₹3,47,15,685/- on account of unexplained cash receipts from Rajesh Poddar under section 68 of the Act. The assessee appealed this decision before the CIT(A), who disposed of the appeal on merits. The Tribunal found that the reopening of the assessment after four years from the end of the relevant assessment year was invalid as the conditions precedent under the first proviso to Section 147 of the Act were not satisfied.…

Legal Issues

• 1. Whether the reopening of assessment under section 147 of the Act after a lapse of four years from the end of the relevant assessment year is valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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