2026 (4) TMI 1126

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....ue that falls for my consideration is confirmation of addition of Rs. 30,70,400/-. 2. The Ld. AR advanced legal arguments assailing reopening of the assessment and also advanced arguments on merits. The Ld. Sr. DR also advanced arguments in support of orders of lower authorities. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 3. Pursuant to receipt of information from Pr. DIT (Inv.), Chandigarh that certain cash was deposited in seven different bank accounts held by five concerns of Shri Anil Kumar Soni in PNB, Charkhi Dadri Road / Kurukshetra branch from 10-11-2016 to 25-11-2016, the case of the assessee was reopened. Shri Anil Kumar Soni stated that he was frontman for Shri Vipi....

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....s represent realization from debtors and income out of such receipt was already shown by way of sale of goods. However, Ld. CIT(A) held that since Shri Krishna Traders was proved to be a shell entity, the submissions of the assessee were rejected and the assessment was confirmed. Aggrieved, the assessee is in further appeal before Tribunal. 6. It emerges that the assessee was engaged in the business of cottonseed, oil and Khal during this year. The return of income was duly filed by the assessee on 28-09-2011 (kept on page No.1 of the paper-book) and the books of the assessee were duly audited u/s 44AB. The assessee made sale of goods to Shree Krishna Traders for Rs. 30.40 Lacs and the sale consideration was received through banking chan....

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....the case was to be reopened. Considering these facts, approval has been granted by appropriate authority to reopen the case of the assessee. 7. Upon perusal of the recorded reasons, it could be said that the reopening was not only on incorrect facts but Ld. AO invoked the provisions of clause (a) of Explanation 2 to Sec.147 which is specifically applicable only in case where no return of income is furnished by the assessee. This explanation provide that it would be a deemed case of escapement of income where no return of income had been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which i....