Trinity Enclave Pvt. Ltd. Vs ITO (ITAT Kolkata)
The appeal before the Income Tax Appellate Tribunal Kolkata arose from an order dated 02.05.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, under section 250 of the Income Tax Act, 1961. The assessee challenged, inter alia, the validity of reassessment proceedings initiated under sections 147 and 148 of the Act, contending that the notice under section 148 was issued without a valid sanction under section 151.
The assessee had filed its return of income for Assessment Year 2017–18 on 28.03.2018 declaring total income of ₹17,640. Subsequently, information was received from the Directorate of Investigation stating that the assessee had deposited ₹12,20,000 in cash into its bank account during the demonetisation period. Based on this information, the Assessing Officer reopened the assessment by issuing a notice under section 148 on 31.03.2021. The assessee did not file a return in response to the notice. Thereafter, a questionnaire and notice under section 142(1) were issued on 23.12.2021, to which the assessee responded by furnishing its balance sheet, profit and loss account, bank statements, and other details, explaining that it was engaged in the real estate business in Kolkata.
