ITO Vs Nextgen Construction Pvt. Ltd. (ITAT Mumbai)
Summary: The appeal filed by the Revenue concerned Assessment Year 2011-12 and challenged the order dated 28/02/2019 of the Commissioner of Income-Tax (Appeals)-22, Mumbai, deleting an addition of Rs.10,20,00,000/- made under Section 68 of the Income-tax Act, 1961. The assessee also filed cross-objections challenging the validity of reassessment proceedings under Sections 147 and 148.
The assessee, a resident corporate entity stated to be engaged in consultancy of real estate business, had originally filed its return declaring income of Rs.0.27 lakh. The return was processed under Section 143(1). Subsequently, information received from the DDIT (Investigation), Unit-2(1), Kolkata led the Assessing Officer to believe that the assessee had benefited from deposits of Rs.10.20 crore from Minaxi Suppliers Private Limited (MSPL), alleged to be a paper company. Notice under Section 148 was issued on 29/03/2016, followed by notices under Sections 143(2) and 142(1).
The investigation information referred to inquiries concerning M/s KJM International and Shri Sanjoy Kumar, including large-value cash deposits, RTGS transfers and routing of monies through entities allegedly controlled by Shri Anand Sharma. MSPL was stated to be one of the entities in the alleged chain of accommodation entries. The assessee denied any connection with Shri Sanjoy Kumar and stated that the Rs.10.20 crore had been received from MSPL through regular banking channels as contribution towards a proposed joint venture arrangement.
