Glasseye Traders Pvt Ltd Vs ITO (ITAT Kolkata)
ITAT Kolkata held that in course of reassessment, AO concludes that no additions or modifications are warranted under these heads, it would not be entitled to make any additions in respect of other items forming part of original return.
Facts- Proceedings u/s 147 of the Income Tax Act, 1961 were initiated. It is recorded that AO received information from the Investigation Wing, Kolkata pertaining to 67 accounts with Industrial Development Bank of India, Bidhannagar, Kolkata. These accounts were held to be suspicious and information was passed on to various AOs, including the AO under consideration. It is seen that while analysing the entries in the said accounts and considering the response from the assessee, AO noticed that there were no transactions pertaining to M/s. MPS Greenery Developers Ltd. Since transaction with M/s. MPS Greenery Developers Ltd. was what was recorded in the reasons to believe hence, AO deemed it fit to effectively drop proceedings with this entity and proceed on the basis of further information regarding other entities.
Notably, the total transactions from these other entities amounting to Rs. 3,98,48,500/- were eventually added u/s 69A of the Act. Admittedly, this amount was substituted for an amount of Rs. 5,57,91,000/- which was part of the reasons recorded before issuance of notice u/s 148 of the Act, as transaction from M/s. MPS Greenery Developers Ltd.
