Trinity Enclave Pvt. Ltd. vs. ITO Ward 4(1), Kolkata

Parties Involved

Facts Summary

The assessee, Trinity Enclave Pvt. Ltd., filed a return of income for the Assessment Year 2017-18 declaring a total income of Rs. 17,640. Subsequently, the Income Tax Department received information indicating that the assessee had deposited Rs. 12,20,000 in cash into its bank account during the demonetization period. Based on this information, the case was reopened under section 147 of the Income Tax Act, 1961, and a notice under section 148 was issued on 31.03.2021. The assessee did not file a return in response to this notice. The Assessing Officer (AO) issued a questionnaire under section 142(1) on 23.12.2021, to which the assessee responded by providing details of its real estate business, balance sheet, Profit & Loss Account, and bank statements. The AO noted that the cash deposit of Rs. 12,20,000 was not accompanied by any corresponding income offered to tax.…

Legal Issues

• 1. Validity of the notice issued under section 148 of the Income Tax Act, 1961.
• 2. Jurisdiction of the National Faceless Assessment Centre, Delhi to issue notices and frame assessments.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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