TaxTMI 
TaxTMI 
2024 (4) TMI 1150
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....t without appreciating the facts and circumstances of the case in its entirety. 2. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals), NaFAC has erred in confirming the action of the Assessing Officer in making addition u/s.68 of the Act, ignoring the documents produced by the appellant, such as loan confirmations, bank statement and copies of the ROIs filed by the lenders and thereby proving the identity, genuineness of transaction and creditworthiness of the transactions. 3. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals), NaFAC has erred in confirming the action of the Assessing Officer in not appreciating the facts that the unsecured loans were repaid to the lenders in the subsequent years, and these facts were duly proved by the appellant with the relevant documents. 4. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals), NaFAC has erred in confirming the action of the Assessing Officer in not considering the ....
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....d or payable during the year with mode of transaction and confirmation of parties with their ITR and other proof about the genuineness of transaction. The Assessing Officer recorded that despite giving sufficient opportunities, the assessee neither responded nor filed details of lenders. The Assessing Officer issued final show cause notice on 09/10/2017. The Assessing Officer on recording that despite giving sufficient opportunity, the assessee failed to prove genuineness of transaction of loan of Rs. 3.40 crores and the same was treated as cash credit under Section 68 of the Income Tax Act, 1961 (in short, the Act). 4. Aggrieved by the additions in the assessment order, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee raised a plea that the assessment completed under Section 144 of the Act is bad in law and may be quashed. The assessee has not received notice of hearing as their premises was lying closed and possession of entire factory premises was taken over by the National Company Law Tribunal (NCLT). The assessee also challenged the addition of Rs. 3.40 crores. The validity of reopening under Section 144 of the Act was upheld by the ld. CIT....
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....dings, thus, deserve no cognizance at this stage. On the fact regarding repayment of loan in subsequent year, the Assessing Officer reported that principle of res judicata dos not apply to the income tax proceedings and every assessment year is a different assessment year. 5. The ld. CIT(A) on considering the submission of assessee and remand report, held that the assessee's case does not fall in the exception provided under Rule 46A of the Rules as the assessee was given opportunity of being heard by the Assessing Officer during the assessment. On the plea of assessee that the assessee has not received notice of hearing as their premises was lying closed and possession of entire factory premises was taken over by the National Company Law Tribunal (NCLT). The ld. CIT(A) held that the assessee has not filed any evidence and their connection with Metal Links Alloys Ltd.. The remand report of Assessing Officer was shared with assessee, however, the assessee has not filed any response, thus the additional evidence produced by assessee cannot be admitted as the condition mentioned in the Rule 46A of the Rules are not satisfied. The ld. CIT(A) accepted that during the remand report, the....
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....as no occasion that the assessee was prevented in furnishing such evidence before the Assessing Officer. However, the Assessing Officer in his remand report also recorded that in the remand proceedings, confirmation of account, ledger extract in the books of assessee as well as in the books of lender alongwith confirmation of repayment in subsequent year was filed. The Assessing Officer despite recording such fact again reiterated that no cognizance of such evidences can be taken, as such notices were not filed during the assessment. The ld. AR of the assessee submits that the assessee has shown sufficient cause as they were prevented due to non-service of notice as the possession of factory premises was taken over by the order of NCLT. Such fact is sufficient to prove the bonafide of assessee. The Assessing Officer despite accepting the fact that the assessee furnished complete details to prove identity, creditworthiness and genuineness of transactions objected for consideration of evidence only on the ground that such evidence was not filed during the assessment. The ld. AR of the assessee submits that once the repayment of loan is accepted, no addition in the year under consider....
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....es by taking view that the assessee was given sufficient opportunity but the assessee failed to file any submission to substantiate the transaction of unsecured loan. We find that before the ld. CIT(A), the assessee in its submission, explained that they were prevented by sufficient cause as notice of Assessing Officer was not received. The factory premises of assessee as well as Metal Links Alloys Ltd. were possessed by the order of NCLT. We find that alongwith submission, the assessee also filed requisite details of lenders in furnishing their details including, name, address, ledger account, bank account, confirmation of parties. The Assessing Officer has not issued any notice to carry out any further investigation or to bring any adverse material rather objected about the admissibility of additional evidence at the first appellate stage. Though, the Assessing Officer in para 6,7, and 8 of his remand report, accepted that the assessee has furnished confirmation of bank account, bank statement, ledger account in the books of assesse of lenders, ledger account of assessee in the books of lenders. The assessee also furnished evidence of repayment of loan. All such facts are accepte....