TaxTMI 
TaxTMI 
2026 (5) TMI 315
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....led declaring total income of Rs.37,77,134/-. The case of the assessee was reopened after information was received from the insight portal Criu/Vru, pertaining to the A.Y. 2019-20, indicating that the assessee was involved in investing/advancing unaccounted money as cash loans. The information revealed that Santosh Kumar Rungta (assessee), is the lender of cash loans to various entities through finance broker Anil Kumar Kasera(Kasera Group)during F.Y. 2018-19 and assessee is the beneficiary of the same. The said information was collected by the investigation wing in post search proceedings which revealed that finance brokers were engaged in unaccounted cash transactions on large scale basis in lieu of commission. The assessee in response to notice u/s 148 of the Act did not file any ITR as per the version of the Ld. AO. On 26.06.2024, the assessment proceedings were transferred from JAO to AO assessment unit. It is mentioned on page no.4 of the assessment order that due to non-filing of ITR u/s 148 of the Act, notice u/s 143(2) of the Act was not issued. Finally, the assessment was completed by the Ld. AO by making additions of unexplained cash credit u/s 69A of the Act of Rs.7,80,....
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....Kolkata-700019 by investment and did not carry out any business nor any other means to have carned such a huge income Without any source of generating such a huge income I could not have given any loan of entered into any cash transaction with any person and in this case it just an act of imagination and it is impossible for me to have given any loan as alleged. Further, in connection to the allegation that I have given cash loans through Kasera Group, it is again reiterated that I did not give any loan to or had any cash loan transaction with anyone and/or through Kasera. The statements of the finance brokers were recorded under section 132(4) of the Act. However, your honour has not provided me any statements of the finance brokers or the said Anil Kumar Kasera for the Asst. Year in question so as to check whether at all my name appears in the statements because my name cannot appear since 1 never entered into any such transaction with the said broker. I cannot be made responsible to the allegations of cash loan alleged to be given by me when I was not even given an opportunity to examine him nor even a copy of the statement made by him in which he has alleged t....
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....lable to each officer of the department on finger tips). It therefore appears that you have blindly relied on the information uploaded on the Insight Portal without any findings or verification of your own. Further, it is also submitted that your honour had alleged in show cause notice u/s 148A(b) and the information from the insight portal that I had provided cash loan of Rs. 7,80,00,000/- to Kasera Group. Even the documents mentioned in the case related information details i.e., the statement of Anil Kumar Kasera and the "Letter to AO" on which reliance has been placed has also not been provided to me. This shows that no material was ever supplied to me before reopening the case and there are several judgement of high courts when the assessee is not provided with the material the entire reopening is bad in law and liable to be quashed. It is very puzzling how your honour has concluded that amount of Rs. 7,80,00,000/- has escaped assessment when even the information based on which such allegation is made contradicts the same. This goes on to show that there has been no independent application of mind on your honour's part to arrive at the said figure. Further, your ho....
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....at the return originally filed u/s 139 on 26.09.2011 may be treated as the return filed in response to notice u/s 148. He has contended that the notice issued u/s 148 thus was duly complied with by the assessee and it was mandatory for the AO to issue a notice u/s 143(2) before proceedings to make an assessment u/s 147. In this regard, the learned DR has contended that the letter filed by the assessee cannot replace the return and by filing such letter, the assessee cannot be said to have complied with the requirement of filling the return of income in response to notice issued u/s 148. It is however observed that this aspect has already been considered by Hon'ble Delhi High Court in the case of Jai Shiv Shankar Traders Pvt. Ltd. 383 ITR 448 cited on behalf of the assessee and relied upon by the Ld. CIT(A) in his impugned order wherein a letter was filed by the assessee on 16.12.2010 informing the AO that the return originally filed should be treated as the return filed pursuant to the notice u/s 148. The AO thereafter, proceeded to complete the reassessment without issuing a notice u/s 143(2) and it was held by the Hon'ble Delhi High Court that the failure by the AO to issue a not....
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.... The Income Tax Officer TC(A) No. 159 of 2006 dated 17.07.2012. In the said decision after taking note of the decision of the Hon'ble Supreme Court in Asstt. CIT v. Hotel Blue Moon (2010) 321 ITR 362(SC) the reassessment proceeding was set aside. The initial view was that failure to issue notice is an irregularity, which is curable when subsequently the law is well settled that it being an inherent defect " 3.1.2. Besides, we note that the reopening of assessment which has been raised in ground no.3 has been made by the Ld. AO on the basis of information from the investigation wing which is extracted as under: "Broker Name PAN Related Group entity Grand Total AKK Santosh Kumar Rungta ADAPR36669p Lansdowne Towers Pvt. Ltd. 10,15,00,000 Group Name: SANTOSH KUMAR RUNGTA/MADGUL PARKS PVT LTD/LANSDOWNE TOWERS PVT LTD 1. Potential lender or borrower status: Lender 2. Lenders Annexure reference: Madgul Parks P Ltd 3. Possible financial transactions deduced and decoded from hard copies obtained from DDIT (please refer Annexure in excel version for further details) Potential cash lent to various borrowers Rs. ....