DCIT Vs Ajay Jalan (ITAT Kolkata)
The Revenue appealed against the order of the Commissioner of Income Tax (Appeals) relating to Assessment Year 2019-20, wherein the reassessment initiated under Sections 147 and 148 and the addition made under Section 69A were set aside. The original return had been filed under Section 139(1) and processed under Section 143(1). Following a search under Section 132 in the case of the Jalan Group, the assessee’s case was assessed under Section 143(3) read with Section 153A on 28.03.2022. Subsequently, a notice under Section 148 dated 06.04.2023 was issued alleging that the assessee had advanced cash loans through a finance broker, leading to additions towards alleged cash loans, interest and commission.
The Commissioner (Appeals) found that during the earlier assessment under Section 153A/143(3), the Assessing Officer already possessed the same information relating to the alleged cash loans. While additions had been made for Assessment Years 2016-17 and 2017-18 on the basis of that material, no addition was made for Assessment Year 2019-20. The Commissioner (Appeals) held that reopening the completed assessment on the very same material amounted to a change of opinion based on stale information and declared the notice issued under Section 148 to be bad in law.
