KINETIC VINCOM PVT. LTD.,KOLKATA V. I.T.O., WARD - 4(4), KOLKATA

ITA 2153/KOL/2024

AI Insights

Kinetic Vincom Pvt. Ltd. appealed against the orders of the AO and the CIT(A), which had added Rs. 10,13,00,000 to the assessee's income under Section 69A read with Section 115BBE of the Income Tax Act, 1961. This addition was based on the reopening of the assessee's case, which initially declared a total income of Rs. 5,120, following the Supreme Court's decision in Union of India & Ors. Vs. Asish Agarwal. The Tribunal noted that a subsequent Supreme Court decision in Union of India & Ors. Vs. Rajib Bansal provided new insights relevant to the case, leading to the decision to remand the case back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 35916 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Other Referred Cases: Union of India and Ors. Vs. Asish Agarwal, Union of India & Ors. Vs. Rajib Bansal
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 147; 148; 69A; 264

Judgement Text

"आयकर अपीलȣय अͬधकरण, कोलकाता पीठ “ए’’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH: KOLKATA Įी राजेश क ुमार, लेखा सटèय एवं Įी Ĥदȣप क ुमार चौबे, ÛयाǓयक सदèय क े सम¢ [Before Shri Rajesh Kumar, Accountant Member &Shri Pradip Kumar Choubey, Judicial Member] I.T.A. No. 2153/Kol/2024 Assessment Year: 2015-16 Kinetic Vincom Pvt. Ltd. (PAN: AAECK 5033 E) Vs. ITO, Ward-4(4), Kolkata Appellant / ) अपीलाथȸ ( Respondent / Ĥ×यथȸ Date of Hearing / सुनवाई कȧ Ǔतͬथ 11.02.2025 Date of Pronouncement/ आदेश उɮघोषणा कȧ Ǔतͬथ 10.03.2025 For the assessee / Ǔनधा[ǐरती कȧ ओर से Shri Manish Tiwari, FCA For the revenue / राजèव कȧ ओर से Shri Subhendu Datta, CIT DR ORDER / आदेश Per Pradip Kumar Choubey, JM: This is the appeal preferred by the assessee against order of Commissioner of Income Tax (Appeal)- NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 27.08.2024 for AY 2015-16. 2. Brief facts of the case of the assessee are that the assessee is a private limited company, filed its return of income declaring total income of Rs. 5,120/-. The case of the assessee was reopened u/s 147 as the assessee company has provided loan to M/s 2 I.T.A. No. 2153/Kol/2024 Assessment Year: 2015-16 Kinetic Vincom Pvt. Ltd. Indian Pulp and Paper of Rs. 10,13,00,000/- in the form of accommodation entry. Later on, in compliance to the order of Hon’ble Supreme Court in the case of Union of India and Ors. Vs. Asish Agarwal, the AO issued afresh notice u/s 148 of the Act and reopened the case u/s 147 of the Act after obtaining the approval of the competent authority. In response to the notice issued from time to time the assessee submitted the reply but the AO did not find the submission of the assessee tenable, accordingly, in view of the order passed by the Hon’ble Supreme Court in Union of India & Ors. Vs. Asish Kumar Agarwal (supra) the AO completed the assessment by making an addition of Rs. 10,13,00,000/- u/s 69A read with Section 115BBE of the Act. 3. Aggrieved by the said order the assessee preferred an appeal before the Ld. CIT(A) wherein also the appeal of the assessee has been dismissed. Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. The Ld. Counsel for the assessee without arguing into the merit of the case has submitted that the AO has reopened the case on the basis of order passed by the Hon’ble Supreme Court passed in the case of Union of India and Ors. (supra). Later on, the Hon’ble Apex Court has discussed the case of Asish Agarwal in subsequent decisions passed in Rajib Bansal case and given a concrete finding on the issue raised by the assessee. The submission of the Ld. Counsel of the assessee is that the appeal of the assessee be restored into the file of the AO to pass afresh order on the issue raised by the assessee in view of the order passed by the Hon’ble Apex Court in Union of India & Ors. Vs. Rajib Bansal [2024] 10 TMI 264 (SC). 5. The Ld. D.R did not raise any objection. 6. Upon hearing the submission of the counsel of the respective parties, we have perused the order passed by the AO as well as Ld. CIT(A) and find that the AO has passed an order on the basis of Apex Court decision passed in Union in India & Ors. Vs. Asish Agarwal. Later on, Apex Court decision in Union of India & Ors vs. Rajib Bansal case has resolved a long-standing controversy surrounding reassessment proceedings u/s 148 of the Act. This controversy deemed very notices issued on 3 I.T.A. No. 2153/Kol/2024 Assessment Year: 2015-16 Kinetic Vincom Pvt. Ltd. 01.04.2021 and 30.06.2021 following the extended time line provided under Taxation and Other Laws (Relaxation and Amendment of Certain provisions) Act, 2020 is short called ‘TOLA’. Admittedly, in the present case, the case of the assessee was reopened keeping in view the Apex Court decision passed in Union of India & Ors. Vs. Asish Kumar Agarwal. We find substance in the argument of the Ld. Counsel of the assessee is that the case be restored into the file of AO for a fresh decision., keeping in view, the recent judgment of the Apex Court passed in Union of India & Ors. Vs. Rajib Bansal. Accordingly,the order passed by the AO confirmed by the Ld. CIT(A) are hereby set aside. The appeal of the assessee restored into the file of AO with a direction to pass afresh order keeping in view the order passed by the Apex Court passed in Union of India & Ors. Vs. Rajib Bansal. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 10th March, 2025 Sd/- Sd/- (Rajesh Kumar/राजेश क ुमार) (Pradip Kumar Choubey /Ĥदȣप क ुमार चौबे) Accountant Member/लेखा सदèय Judicial Member/ÛयाǓयक सदèय Dated: 10th March, 2025 SM, Sr. PS 4 I.T.A. No. 2153/Kol/2024 Assessment Year: 2015-16 Kinetic Vincom Pvt. Ltd. Copy of the order forwarded to: 1. Appellant- Kinetic Vincom Pvt. Ltd., 7, Red cross Place, 4th Floor, Kolkata- 700001 2. Respondent – ITO,Ward-4(4), Kolkata 3. Ld. CIT(A)-NFAC, Delhi 4. Ld. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata "