GOVERNMENT OF INDIA
MINISTRY OF FINANCE
INCOME TAX DEPARTMENT
1. PAN AXXXXXXXXT
2. Name of the assessee THE XXXXXXXXXXXXXX LIMITED
3. Address of the assessee NEAR DLF PHASE 1, GURGAON 122002,
Haryana, India
*ITBA10007330088
4. Assessment Year 2022-23
5. Status AOP(ASSOCIATION OF PERSONS)
6. Residential Status Resident
7. Date of filing of Return of Income 07/12/2022
8. Acknowledgement Number of 83755427107122
Return of Income
6*
9. Date of processing u/s 143(1)(a) 13/12/2022
of the Income-tax Act.
10. Income Computed under section 143(1) of
the
Act
11. Date of service of Notice under section 01/06/2023,01/06/2023
143(2) of the Income-tax Act
12. Date(s) of issue of Notice(s) under 31/07/2023
section 142(1) of the Income-tax Act
13. Order passed under section 143(3) read with section 144B of the Income-
tax Act
14. Returned Income Rs. 0
15. Date of Order 29/01/2024
16. DIN ITBA/AST/S/143(3)/2023-24/1060220493(1)
ASSESSMENT ORDER
Income Tax Return (ITR-5) for A.Y. 2022-23 was filed by the
assessee on 07.12.2022 u/s 139(4) of Income-tax Act, 1961 declaring total
income of Rs. ‘nil’ (loss of Rs. 13,88,998/-). Filed Return of Income had
been e-verified by the assessee on 07.12.2022. Subsequently, the case
had been selected for scrutiny through CASS for mainly following issue(s):
(a) Share Capital/Other Capital.
2. During the course of assessment proceedings, following
opportunities have been provided to the assessee to furnish
reply/documents/explanation which are as under:-
Type of Date of Date o Respons o Date o Response Remarks
notice f e f f ,
Note:- The website address of the e-filing portal has been changed from www.incometaxindiaefiling.gov.in to www.incometax.gov.in.
/ Notice/ complianc the response type(full/ if any
communicati communicati e given assessee
on on received/no if received part/
t received adjournment
Intimation 01.06.2023 -- Not -- -- -
letter required
Notice 01.06.2023 16.06.202 Not -- -- -
u/s 3 received
143(2)
Notice 31.07.2023 14.08.202 Received 01.09.2023 part -
u/s 3
142(1)
SCN 20.12.2023 25.12.202 Not - - -
3 received
3. The return was processed u/s 143(1) and subsequently the case
was selected for scrutiny through CASS- Scrutiny. Reason for Scrutiny
Selection mentioned as “there is a substantial increase in the capital
during the year. The source of capital introduced needs to be verified
alongwith its creditworthiness and genuineness.”
3.1 During the assessment proceedings the opportunities of being
heard have been afforded as mentioned in para-2 as above. In response to
these notices the assessee furnished the following replies:-
Date Reply /explanation/clarification/documents furnished by
the assessee
01.09.2023 The assessee has submitted copy of bank account
maintained with Union Bank.
3.2 During the assessment proceedings, show-cause notice
proposing variations to the total income of the assessee has been
issued on 20.12.2023 fixing the compliance date on 25.12.2023. But
the assessee has not furnished any reply in response to this show-
cause notice therefore it is clear that the assessee
Page 2 of
has nothing to say in this regard. Against the show cause notice the
assessee has not opted hearing through video conferencing.
3.3 During the assessment proceedings, the replies/ documents/
clarification/ justification filed by the assessee has been examined
carefully. The following observation has been made:-
(1) From the facts as found in the ITRs, nature of transactions in
assessee’s account cannot be ascertained to normal business. During the
year under consideration the assessee introduced fresh capital amounting
to Rs. 30,87,70,256/-. The source of capital introduced remained
unverified and genuineness of the introduction of fresh capital and
creditworthiness of the depositors also remained unverified as the
assessee furnished nothing during the assessment proceeding except one
adjournment. Since the assessee has failed to furnish any cogent
explanation with regards to the increase in capital during the year, the
same is liable to be held its unexplained income which it had failed to offer
for taxation. Therefore, the amount of Rs. 30,87,70,256/- is added as
income of the assessee u/s 68 of Income-tax Act, 1961 as the assessee
failed to disclose identity of depositors, failed to prove creditworthiness of
depositors and genuineness of transactions. Tax is calculated @60% u/s
115BBE of the Income-tax Act, 1961. Penalty proceedings u/s 271AAC(1) of
the Income-tax Act, 1961 are initiated.
(Addition of Rs. 30,87,70,256/-)
4. In view of the above discussion, the total income of the assessee
is computed as under:-
Sl No Description Amount (in INR)
1 Income as per Return of Income filed Nil
2 Income as per computed u/s 143(1)(a) Nil
3 Variation in respect of issue of 30,87,70,256/-
<Unexplained credit>
4 Total income/loss determined as per the 30,87,70,256/-
above proposal
Page 3 of
5. Assessed u/s 143(3) read with section 144B of the Income-tax
Act, 1961 at total income of Rs. 30,87,70,256/-. Credit for prepaid taxes
is given, if any, after due verification. The computation of tax and
interest is as per ITNS 150A which forms a part of this order. Demand
notice and challan are issued accordingly. Penalty notice u/s 271AAC(1) is
issued separately.
Assessment Unit
Income Tax
Department
Copy to:
Assessee
Assessment Unit
Income Tax
Department
Digitally signed by
ASSESSMENT UNIT, INCOME
TAX DEPARTMENT
Date: 29-01-2024 17:51:39
Page 4 of 4 IST
FACTS OF APPEAL
1. The assessee is a Group housing
society built for the retired officers
of Haryana. The source income
mainly are maintenance and
electricity charges, and
enhancement fees collected from
flat owners but the society has to
deposit the same to respective
agencies like HUDA, DHBVN
periodically.
2. Tax audit u/s 44AB is not applicable
since the assessee is cooperative
society and audit by the auditor of
the Cooperative societies are
already done. Report enclosed
herewith.
3. As per assessment order the
assessee introduced fresh capital
amounting to Rs. 30,87,70,256/- ,
the same to be held its unexplained
income. . Upon thorough
examination of our financial records,
particularly the balance sheets for
both the financial years 2020-2021
and 2021-2022, it has come to our
attention that there was only an
addition of Rs.1,42,27,439/- in
capital during the stated period. This
glaring disparity between the
assessed fresh capital and the actual
capital introduced suggests a
significant error in the assessment
order
4. Firstly, the notice dated 20.12.2023
fixed the compliance date on
25.12.2023, which coincides with a
national holiday. As per legal
provisions, the standard duration for
responding to such notices is
typically 7 days.
5. Society is just acting as legal entity
between the owner of the flat and
government agencies to collect the
electricity, maintenance charges and
land enhancement charges payable to HUDA.
It is non profitable entity.
