2026 (6) TMI 336

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....ed on the information received from inside portal by DDIT/ADIT (Inv), it came to light that the Assessee company has taken accommodation entries of bogus unsecured loan of Rs. 1,19,68,090/- from dummy entity M/s Odisha Finlease Pvt. Ltd. during Financial Year 2018-19 relevant to Assessment Year 2019-20, accordingly the case of the Assessee was reopened by issuing notice u/s 148 of the Act. An assessment order came to be passed on 22/03/2024 by making an addition of Rs. 70,00,000/- under Section 69A of the Act and also made addition u/s 68 of the Act to the tune of Rs. 1,73,97,501/-. Aggrieved by the assessment order dated 22/03/2024, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 08/10/2025, deleted the ....

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....epaid an amount of Rs. 70,00,000/- to Orissa Finlease Pvt. Ltd. and on issuing notice u/s 133(6) of the Act, no response was received by the party and as per the verification, it is found that the address given by the Assessee either incomplete or the said entity is dummy one. The addition has been made u/s 69A of the Act by treating the same as unexplained money, which has been upheld by the Ld. CIT(A) and the same requires no interference at the hands of the Tribunal. 5. We have heard both the parties and perused the material available on record. The case of the Assessee was reopened and the notice u/s 148A(d) of the Act was issued for taking accommodation entries of bogus unsecured loan. For the sake of ready reference, the reasons as....

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....upra) and PCIT v. Jaguar Buildcon Pvt. Limited (supra). We concur with the aforesaid view. It is well established that Section 147 of the Act enables the reopening of concluded assessments only in exceptional cases, where there the AO has reason to believe that Assessee's income for the relevant period has escaped assessment. It is trite law that concluded assessment should not be lightly interfered with. If the ground on which the concluded assessment is sought to be re-opened, cannot be sustained, there would be little rationale for expanding the reassessment proceedings. In our view, it would not be apposite to accept an expansive interpretation to the provision of Section 147 of the Act. Given that the nature of the proceedings is to un....

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....id explanation merely clarified that the AO would assess or reassess the income in respect of the issue which had escaped assessment and such other issue, which came to the notice subsequently. However, the said explanation does not control the import of the plain language of Section 147 of the Act. Explanation 3 to Section 147 of the Act, merely clarifies that the jurisdiction of the AO was not confined to assessing or reassessing of the income of an Assessee only in respect of the issue, which formed a part of the reasons recorded for reopening the assessment. The said explanation cannot be interpreted to mean that the AO could assess other incomes of the Assessee even in cases where no addition is made on account of the reasons for which....