2024 (6) TMI 860

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cified the name of person by whom amount of Rs. 30,00,000/- has been paid to the appellant at the time of initiating the proceedings and without conducting independent enquiry. 2. Ld. CIT(A) has erred in law and on facts in upholding the addition of unsecured loan of Rs. 30,00,000/- u/s. 68 of the Act, though confirmation, ITR and bank statement of the lender have been furnished during the course of assessment proceedings and utilisation thereof has been established." 3. The assessee filed his return of income for assessment year 2016-17 on 11-03-2017 declaring total income at Rs. 18,53,600/-. The Assessing Officer observed that search in the case of JSSS (Sanjay Shah & Jignesh Shah) Group of Ahmedabad took place on 11-09-2018 and it w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....u/s. 147, the same is not sustainable as it is on vague information and in fact the search was conducted in case of JSSS Group, Dharamdev Group, Dishman Group but the assessment has made the addition in respect of loans from M/s. Hartron Network Ltd. There was no corporation and thus the reopening itself is bad in law. The ld. A.R. relied upon the decisions of Hon'ble Gujarat High Court in case of Varshaben Sanatbhai Patel vs. (2015) 64 taxmann.com 179 and various Tribunal's decisions on the issue of reopening. As regards ground no. 2, the A.R. submitted that the addition of unsecured loan of Rs. 30,00,000/- u/s. 68 treating the same as unexplained cash credit, the assessee received the said amount from Hartron Network Pvt. Ltd. by RTGS and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....term the reopening invalid. As regards ground no. 2, the ld. D.R. submitted that the Assessing Officer as well as CIT(A) has rightly observed that if the return is filed in loss by the said Hartron Network Ltd. then the creditworthiness and genuineness is doubtful. The ld. D.R. relied upon the assessment order and the order of the CIT(A). 7. Heard both the parties and perused all the relevant materials available on record. From the perusal of the reasons for reopening, it was in respect of the search conducted on three entities and the verification is a must for these transactions and the statements made by the concerned directors and the accountants of the said groups. There was no other discrepancies pointed out by the assessee and there....