JKC REALTY PVT. LTD.,KOLKATA V. I.T.O., WARD - 9(1), KOLKATA

ITA 1122/KOL/2025

AI Insights

The case involves JKC Realty Private Limited, which faced an addition of Rs. 47,04,000 to its income on account of share capital and share premium under section 68 of the Income Tax Act. This addition was initially made by the Assessing Officer following a reopening of the assessment for the assessment year 2012-13. The reopening was challenged by the assessee on the grounds that it was invalid as it was conducted merely for verification purposes. The CIT(A) upheld the Assessing Officer's decision without considering the merits of the case, leading to the assessee's appeal before the Tribunal. The Tribunal agreed with the assessee, stating that the reopening was not valid as it was not based on any new tangible material but was merely for verification.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774204 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 23-05-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: FILING
• Keywords: Reopening of assessment
• Section: 2

Judgement Text

"ITA No.1122/Kol/2025 Assessment Year : 2012-13 P a g e 2 | 4 notice u/s.148 of the Act, which was complied with by the assessee by filing return on 30.3.2019. Finally, the Assessing Officer made an addition of Rs.47,04,000/- on account of share capital and share premium u/s.68 of the Act. On appeal, ld CIT(A) affirmed the order of the Assessing Officer on the ground of limitation without considering the case on merits. Hence, the assessee is in appeal before the Tribunal. 4. At the time of hearing, ld counsel for the assessee submitted that the reopening of assessment is invalid and nullity in the eyes of law. The case of the assessee has been reopened for verification purpose only. Ld AR drew attention to the Bench to page 1 of the assessment order, wherein the reasons recorded by the AO for reopening of assessment are extracted. In the reasons extracted in assessment order at para-3, the Assessing Officer stated that “Thus it can be inferred that transaction of Rs.47,04,000/- is suspicious and same required to be verified.” Ld AR stated that the reopening cannot be made for the purpose of verification and, therefore, the same deserves to be quashed as invalid and nullity so also the assessment order framed consequently. 5. In reply, ld Sr DR supported the orders of lower authorities. 6. After considering the rival submissions and perusing the materials available on record, I find that the reopening of assessment has been made Printed from counselvise.com ITA No.1122/Kol/2025 Assessment Year : 2012-13 P a g e 4 | 4 4. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 12/09/2025. Sd/- (RAJESH KUMAR) ACCOUNTANT MEMBER Kolkata : Dated 12 /9/2025 B.k.Parida, , Sr. PS (OS) Copy of the Order forwarded to : By order Asst.Registrar, Itat, Kolkata 1. The Appellant : JKC Realty Private Limited, 10A, Sikdar Para Street, Burra Bazar, Kolkata-700007 2. The respondent: Income Tax Officer, Ward 9 (1), Kolkata 3. The ld CIT(A), NFAC, Delhi 4. Pr.CIT- Kolkata 5. DR, ITAT, Kolkata 6. Guard file. //True Copy// Printed from counselvise.com "