TaxTMI 
TaxTMI 
TaxTMI 
2023 (8) TMI 881
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....angible material as to failure on the part of the Assessee to disclose truly and fully all material facts necessary for assessment and therefore the Reasons Recorded u/s. 147 are bad in law and consequently the assessment proceedings deserve to be annulled. 2. On the facts & circumstances of the case, the Learned CIT(A) erred by upholding the addition of INR 14,00,000 which was merely out of suspicion relying on statement recorded of director of BCCL wherein nowhere in statement recorded it was mentioned that assessee has taken accommodation entries moreover no cross examination was provided to the assessee. 3. On the facts & circumstances of the case, the Learned CIT(A) erred in upholding the addition of treating the unsecured loan as unexplained expenditure & also making addition u/s 69 of the IT Act as unexplained investment. 4. On the facts and circumstances of the case, the Learned Assessing Officer erred by making addition of unsecured loan notwithstanding the fact that interest paid on it was allowed as business expenditure. 5. On the facts & circumstances of the case, the Learned CIT(A) erred by upholding the addition without appreciating the documentary evidence su....
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....aced reliance upon the statement of the director of Bhoomidevi Credit Corporation Ltd. recorded under section 131 of the Act, wherein he admitted that he was providing accommodation entries to various business establishments and charged a commission ranging from 1.5% to 2% of the transaction. Accordingly, the AO made an addition of Rs. 14 lakh, to the total income of the assessee under section 68 of the Act. 5. The learned CIT(A), vide impugned order, dismissed the appeal filed by the assessee. Being aggrieved, the assessee is in appeal before us. 6. Vide affidavit dated 19/07/2023, sworn by the director of the assessee, it has been submitted that ground no.1 is raised as an additional ground and prayed for admission of same. In ground no.1, the assessee has challenged the validity of proceedings initiated under section 147 of the Act. Since, the issue raised by way of additional ground is a legal issue, which can be decided on the basis of material available on record, we are of the view that the same can be admitted for consideration and adjudication in view of the ratio laid down by the Hon'ble Supreme Court in NTPC Ltd vs CIT: 229 ITR 383 (SC). 7. We have considered the subm....
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....ries from the aforesaid party. The AO based on the said information formed the reason to believe that income chargeable to tax has escaped assessment and it is a fit case for reopening in terms of the provision of section 147 of the Act. 9. It is the plea of the learned AR that the reassessment proceedings have been initiated entirely based on the satisfaction borrowed from the Investigation Wing and no independent inquiry was conducted by the assessee to come to the aforesaid conclusion. In the present case, it is pertinent to note that no scrutiny assessment was conducted in the case of the assessee and therefore the only data available with the AO was the data provided along with the income tax return and the information received subsequently from the office of the ADIT (Investigation)-1, Rajkot. The said information constitutes new and tangible material for initiating the reassessment proceedings in the case of the assessee and on the basis of the aforesaid information, the AO initiated proceedings under section 147 of the Act and issued a notice under section 148 of the Act. In ACIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd, [2007] 291 ITR 500 (SC), the Hon'ble Supreme Court o....
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....he AO under section 147 of the Act. Accordingly, ground no. 1 in assessee's appeal, raised as an additional ground, is dismissed. 11. As regards the merits of the addition, it is the plea of the assessee that the amount in dispute was received as a loan from Bhoomidevi Credit Corporation Ltd. In this regard, the assessee has furnished a copy of ledger account of Bhoomidevi Credit Corporation Ltd. in its books and Bank statements of Bhoomidevi Credit Corporation Ltd. maintained with Dena Bank and IDBI Bank, which forms part of the paper book. Further, the assessee has also furnished the financial statements of Bhoomidevi Credit Corporation Ltd. From the perusal of aforesaid documents, we find that the loan of Rs. 13 lakh was given by Bhoomidevi Credit Corporation Ltd. to the assessee in the year under consideration, which fact is duly recorded in Schedule-5 Loans and Advances of the annual report of Bhoomidevi Credit Corporation Ltd. and this transaction is also recorded by the assessee in the ledger account of Bhoomidevi Credit Corporation Ltd. in its books. We further find that apart from the assessee, loans and advances were given to other entities by Bhoomidevi Credit Corporati....