Dazzling Construction Pvt. Ltd. Vs ITO (ITAT Delhi)
The appeal was filed by the assessee against the order dated 05.12.2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, arising from the assessment order dated 28.12.2019 passed under Sections 143(3) read with 147 of the Income-tax Act, 1961 for Assessment Year 2012-13. The assessee challenged the reassessment proceedings, the additions of ₹3,45,00,000 under Section 68 and ₹6,90,000 under Section 69C, and also raised additional legal grounds regarding the assumption of jurisdiction under Section 148 instead of Section 153C and the absence of DIN on the assessment order. The Tribunal admitted the additional legal grounds.
The reassessment was initiated on information received from the Investigation Wing following a search on the Praveen Aggarwal Group, which allegedly provided accommodation entries through shell companies. The assessee was identified as a beneficiary and the Assessing Officer reopened the assessment under Section 147. During reassessment, the Assessing Officer examined a loan of ₹3,45,00,000 received from M/s. Everlike Projects Pvt. Ltd. The assessee produced documentary evidence including the lender’s income-tax particulars, return acknowledgement, confirmation, balance sheet and bank statements. It also stated that the lender was an income-tax assessee, the transaction was through banking channels, the loan had subsequently been repaid through banking channels, and the Assessing Officer’s enquiry under Section 133(6) had not revealed any adverse information. The Assessing Officer nevertheless made additions under Sections 68 and 69C, expressing doubts regarding the “source of source.”
