IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH,KOLKATA SHRI RAJESH KUMAR, ACCOUNTANT MEMBER SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER (Assessment Year 2017-18)

Labh Combines Pvt. Ltd., 391, Block ‘G’ Shyam Sadan, New Alipore, Kolkata - 700053 [PAN: AAACL4352M] ……..…...…………….... Appellant vs.

Deputy Commissioner of Income Tax, Circle 7(1), Aayakar Bhawan, P-7, Chowringhee Square, Kolkata – 700069 ……..…...…………….... Respondent Appearances by:

Assessee represented by : S.K. Tulsiyan, Advocate &

Puja Somani, AR Department represented by : Sandip Sarkar, JCIT, Sr. DR Date of concluding the hearing : 28.01.2026 Date of pronouncing the order : 17.02.2026

O R D E R

Per Rajesh Kumar, AM The present appeal filed by the assessee arises from order dated

06.10.2025 passed u/s 250 of the Income Tax Act, 1961 (hereafter referred to as “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter referred to as “the Ld.CIT(A)].

2. The assessee has challenged the reopening of assessment u/s 147 of the Act by issuing notice u/s 148 of the Act on 30.03.2021 based on incorrect information received from the DDIT (Inv.), Unit-1(3), Kolkata and without any application of mind by the AO and without there being any tangible material showing live link with escapement of income.

3. The facts in brief are that the assessee filed return of income u/s 139(1) of the Act on 13.10.2017 showing total income at Rs. 1,72,78,870/-. Thereafter, AO received information from DDIT (Inv.) Unit- 1(3), Kolkata that the assessee has taken accommodation entry in the form of unsecured loan or an in other forms to the tune of Rs. 2,00,35,589/- during financial year 2015-16. It was also mentioned that out of the said amount Rs. 1,80,00,429/- was taken from M/s M A Finance Services Pvt. Ltd. and Rs. 55,00,160/- was taken from M/s Zenith Fiscal Services Pvt. Ltd. Accordingly, assessment was reopened and notice u/s 148 of the Act was issued on 30.03.2021. Thereafter, the assessee filed return of income in compliance on 16.04.2021 declaring the same income as declared in the return filed u/s 139(1) of the Act and requested for the reasons. Thereafter, the AO issued notice u/s 143(2) and 142(1) of the Act along with questionnaire and called for the assessee to furnish the details/evidences qua the unsecured loans received from the year under consideration. The assessee duly submitted before the AO all the documents qua the loan creditors. However rejecting the reply evidences furnished by the assessee , the AO made an addition of Rs. 2,00,35,589/- as unexplained cash credit u/s 68 of the Act on the ground that the assessee has failed to prove the three limbs of section 68 of the Act i.e. identity of creditworthiness of the land creditors and the genuineness of the transaction.

4. In the appellate proceedings, the Ld.CIT(A) affirm the said order of the AO.

5. After hearing the rival contention and perusing the material available on record, we find that the AO has reopened the assessment u/s 147 of the Act after recording the reasons to believe u/s 148(2) of the Act. The copy of the reason recorded is available at page no. 96 of the paper book which is extracted below:

“The Assessee company filed its return of income on 13 10.2017 declaring total income at Rs 1,72,78,870/-. No assessment u/s 143(3) of the Income-tax Act, 1961, or u/s 147 of the act has been made in this case.

2. Subsequently information was received on 14.12.2018 from DDIT (Inv.), Unit- 1(3) Kolkata that the assessee company has availed the accommodation entry in from of unsecured loan or and in other forms to the tune of Rs.2,35,00,589/- during the F. Yr. 2045,16. Out of which Rs. 1,80,00,429/- was taken from Mis M A Finance Services Pvt. Ltd. and Rs.55.00.160/- was from M/s Zenith Fiscal Services Pvt. Ltd.

3. Search & seizure operation u/s 132 of the Income-tax Act 1961 was carried out on 21.05.2018 in the case of Banka Group of concerns. It was informed on the basis of