Aadhunik Infrastructure Development Pvt. Ltd. Vs DCIT (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT), Pune Bench “A,” has ruled in favor of Aadhunik Infrastructure Development Pvt. Ltd. (formerly Gauri Plasticulture Pvt. Ltd.), setting aside the reassessment proceedings initiated under Section 147 of the Income Tax Act, 1961, for the Assessment Year 2012-13. The appeal was filed against the order of the CIT(A)/NFAC, Delhi, which upheld the validity of reassessment and sustained an addition of ₹50 lakh under Section 68.
Background of the Case
- The original assessment was completed under Section 143(3) on March 11, 2015, determining the total income at ₹9,18,632.
- The case was reopened based on information from the Kolkata Investigation Wing, which suggested that the assessee had received an unsecured loan of ₹50 lakh from Cambridge Financial Services Pvt. Ltd., allegedly sourced through accommodation entries.
- The reassessment order, passed in 2019, held that the loan was unexplained, resulting in an addition of ₹50 lakh under Section 68.
Tribunal’s Observations
1. Invalid Reopening of Assessment
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- The assessee had disclosed all relevant facts, including details of the loan, during the original assessment.
- The Assessing Officer (AO) had already obtained information under Section 133(6) from the lender, Cambridge Financial Services Pvt. Ltd.
- There was no failure on the part of the assessee to disclose material facts fully and truly.
- The Tribunal ruled that reopening based solely on information from the Investigation Wing constituted “borrowed satisfaction” and was not a valid “reason to believe.”
2. Merits of the Addition under Section 68
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