2015 (7) TMI 981

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....d 26.07.2013, which in-turn has arisen from an order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961( hereinafter referred to as the Act) dated 16.02.2004 pertaining to assessment year 1995-96. In this appeal, assessee has raised the following grounds of appeal. "1. That on facts and circumstances of the case and in law the Ld. CIT (Appeals) has erred in confirming the addition made u/s. 68 by the Ld. Assessing Officer at Rs. 3,00,000/- in the order passed u/s. 143(3) r.w.s 263 in respect of unsecured loans taken from 5 parties, for verification of which loans assessment was already reopened and after due examination and verification same were accepted in the earlier assessment order passed u/s. 143(3) r.w.s 147....

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....assessment order dated 28.03.2003 (supra) as erroneous in so far as it was prejudicial to the interests of Revenue within the meaning of section 263 of the Act, and set aside the same with certain directions to the Assessing Officer. The impugned assessment has been carried out by the Assessing Officer in pursuance to the directions of Commissioner of Income Tax-19, Mumbai, u/s 263 of the Act. In the impugned assessment, the total income has been assessed at Rs. 3,58,170,/- which inter-alia, includes the addition of Rs. 3,00,000/- u/s 68 of the Act. 3. In brief, the circumstances leading to the impugned dispute can be summarized as follows. A survey action u/s 133A of the Act was carried out in the premises of one Shri Nitin J. Rughani, ....

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....arried out by the Assessing Officer. It is the claim of the appellant that the assessment was re-opened and finalized on 28.03.2003 (supra) only for the purpose of examining the genuineness of loans, based on the statement of Shri Nitin J. Rughani. In the said assessment, the Assessing Officer was satisfied that the loans of Rs. 3,00,000/- were genuine and no addition was made. It was, therefore, contended that during the impugned proceedings no fresh material has been brought out by the Assessing Officer to treat the impugned loans of Rs. 3,00,000/- as unexplained within the meaning of section 68 of the Act. The Ld. Representative for the assessee has referred to the detailed written submissions made to the CIT(A), which have been reproduc....

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....atisfied and, therefore, no addition was made. Before the CIT(A) assessee has also stated that in the course of such proceedings, the Assessing Officer summoned the respective parties u/s 131 of the Act and recorded their statements. It is also stated by the assessee that Shri Nitin J. Rughani also filed an affidavit with the Assessing Officer stating that the statement given by him on 4.07.1993, admitting Hawala transactions, nowhere specifically gave the reference of the assessee. Shri Nitin J. Rughani confirmed in the affidavit that all the transactions relating to the assessee are genuine. 7. In this background, subsequent to the completion of assessment on 28.03.2003 (supra), the Commissioner invoking his revisionary jurisdiction u/....