Sunrise Propbuild Pvt. Ltd. Vs ACIT (ITAT Delhi)
ITAT Delhi held that without a clear and direct connection between the facts and the alleged escapement of income, the reasons recorded remains speculative, therefore, the reopening cannot be justified. Accordingly, appeal allowed to that extent.
Facts- The case of the Assessee was selected for reassessment under Section 147 of the Act. The A.O. completed the assessment proceedings u/s 147 r.w. Section 143(3) of the Act vide order dated 28/12/2018 by making an addition of Rs. 2,76,00,000/- as commission income. Aggrieved by the assessment order dated 28/12/2018, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 23/01/2025, dismissed the Appeal of the Assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that the case of the Assessee was reopened citing that Assessee Company received Rs. 98 crores from M/s Vision Multiplex Pvt. Ltd. and M/s Innovative Realtech Pvt. Ltd. which are being accommodation entries. However, no such addition has been made in the assessment order and the addition of Rs. 2,76,00,000/- has been made based on 1% commission income calculated on the total debit and credit entries amounting to Rs. 2,76,00,000/- in the bank account. The addition made by the A.O. was entirely unrelated to the reasons recorded.
