AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (11) TMI 277
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.... selected for scrutiny on 22.09.2019. After issuance of notice and calling for the particulars, a draft assessment order was proposed by the respondent for making addition under Section 68 of the Income Tax Act. A request also had been made by the petitioner for providing Video Conferencing link by the petitioner. The notice and draft assessment order proposing the variations have been issued, which have been replied to by the petitioner. 1.1 It is a grievance of the petitioner that the respondent has passed the order adding the receipt of loans under Section 68 of the Act in complete disregard to the documents substantiated by the petitioner therein proceedings. Assessment order has been passed on 28.09.2021 and that has aggrieved the petitioner, who has approached this Court with following prayers. "6. The petitioner accordingly prays that this Hon'ble Court may be pleased to issue a writ of Certiorari or any other writ in the nature of certiorari or a writ of Mandamus or any other writ in the nature of Mandamus. a. To quash and set aside the impugned order dated 28.09.2021 and the demand notice at "Annexure-I colly." b. Pending admission and final hearing, stay the imple....
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.... further reply on 08.04.2021 during the course of Video Conferencing. 4.5 The respondent, thereafter, issued another show-cause Notice dated 15.04.2021 to show cause as to why assessment should not be completed as per the Draft Assessment Order. Thereafter, Notice dated 20.08.2021 was issued to show cause as to why proposed variation of Rs. 3,09,65,450/- should not be made, comprising of loan amount paid of Rs. 1,02,72,952/- from the unsecured loan and the amount received of Rs. 2,06,92,496/-. The petitioner filed reply dated 16.09.2021 wherein it was stated that all details with regard to receipt of loans during the year under consideration have been provided along with the reply dated 23.03.2021 which contained the identity, genuineness and creditworthiness of the persons who had advanced the unsecured loans to the petitioner. 4.6 During the course of proceedings, the petitioner had also filed an application dated 07.09.2021 u/s.144A of the Act before the JCIT, Vadodara for a direction to the Assessing Officer for completing the assessment. However, the said application was not entertained and the respondent Assessing Officer passed an assessment order on 28.09.2021 by making a....
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....rent parties. Further, the assessee was unable to provide the documentary evidences to substantiate the genuineness & creditworthiness of the parties from which the unsecured loan is taken during the financial year amounting to Rs. 2,06,92,496/-." 4.7 During the course of hearing, the jurisdictional officer was joined as party respondent by order dated 21.12.2021 passed by this Court. 5. During the course of further hearing of this petition, learned advocate for the petitioner furnished paper-book of the documents submitted during the assessment proceedings, which contains the documents for loan / deposits submitted during the assessment proceedings, the transcript of Video Conference hearing and the order dated 24.11.2022 of withdrawal of appeal filed by the petitioner before the CIT (Appeals) challenging the impugned assessment order. 6. Learned advocate Mr. Shah for the petitioner submitted that the respondent Assessing Officer, without considering the documents furnished by the petitioner during the course of assessment proceedings and those which were pointed out during the course of Video Conference hearing, has not given any findings and by a cursory observation that no s....
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....23.03.2021. Later, another show cause notice dated 06.04.2021 was issued for addition u/s. 68, in response to the same the assessee submitted reply dated 08.04.2021, key points of which are reproduced below: As submitted in reply to show cause, the firm has also received loan funds of Rs. 2,06,92,496/-and the proposed addition of Rs. 1,16,98,852/- is much less than the funds received. The funds received as loan are already accepted to be genuine by your honor and based on this fact, the source fully stands explained. Further, the proposed addition of repayment cannot be made u/s. 68 of the Act since the provisions of Sec. 68 deals with sum found credited and not sum found debited. Under such circumstances, it is important for the assessee to understand as to how your honor is proposing to invoke provisions of Sec.68 for repayment of loans. It is submitted that in the show cause dated 20.08.2021, the Faceless Assessing Officer (FAO) proposed addition on account of loan fund received of Rs. 2,06,92,496/- and unsecured loans paid off to Sh. Shroff Ranchodbhai Zaveribhai Patel at Rs. 1,02,50,000/- and Ms. Jeevabehen Nathabhai Patel at Rs. 22,952/- totalling Rs. 1,02,72,952/-. Thu....
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....It is submitted that as the data is available with NFAC (Delhi), the details regarding disposal of the application u/s 144A has been sought from them vide letter dated 12.01.2022 after getting approval from Pr.CIT-1 Vadodara. In response to which vide email dated 31.01.2022, ACIT, NaFAC-1(1)(1), Delhi submitted that - It to be noted that provisions of section 144A of the Income-tax Act, 1961 is not applicable to Faceless Assessment because Faceless Assessment is completed by a Unit consisting of Addl/Jt.CIT and DCIT/ACIT/ITO simultaneously functioning as Assessing Officers. As the assessment is being completed by Addl./Jt.CIT concurrently with the DCIT/ACIT/ITO there is no requirement of invoking the provisions of section 144A of the Act. The situation is akin to an assessment being completed by the Addl Jt.CIT in pre-faceless assessment times ia which section 144A was not applicable. Moreover, the Faceless Assessment Scheme (S.O 3265(E) dated 12.09.2019) which is the pre-cursor of Faceless Assessment provisions specifically excepted / modified the provisions of section 144A of the Act in respect of Faceless Assessments. Relevant extract of the notification is reproduced below:....
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....d to consider the identity and creditworthiness of the depositors on the basis of the documents placed on record and by adopting further inquiry, if the Assessing Officer was not satisfied by such evidence. Moreover, in the facts of the case, the Assessing Officer has made observations which, in turn, are different from the record. 11. In paragraph 5 of the order, the Assessing Officer has observed that "From this, it is observed that the assessee is circulating the money between different parties. Further, the assessee was unable to provide the documentary evidences to substantiate the genuineness and creditworthiness of the parties from which the unsecured loan is taken during the financial year amounting to Rs. 2,06,92,496/-". The above observations are also contrary to the documents placed on record as the Assessing Officer has not referred to any of the documents which are forming part of the paper-book placed before us. 12. We are conscious about the settled legal position that extra-ordinary jurisdiction under Article 227 of the Constitution of India is required to be exercised sparingly and a self-restraint is required to be maintained on the entertainment of a writ chall....