TaxTMI 
TaxTMI 
TaxTMI 
2024 (12) TMI 1384
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....sment year 2009-10. 2. Grounds of appeal raised by the assessee read as under:- 1. "The initiation of the proceedings u/s 263 and the consequent order u/s 263/147/143(3) is bad in law as a) The initiation of proceedings u/s 263 are contrary to provisions of law. b) The mandatory procedure laid down in the Act has not been followed. c) The information has been collected behind the back of the assessee and the assessee was never confronted with the same nor an opportunity provided for cross-examination of Jain brothers, directors of Shalini Holdings Ltd. alleged intermediary, copies of the orders of Jain Brothers and the relevant seized material relied upon has not been provided to the assessee. 2. The learned assessing officer has....
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....l order dated 24.03.2017 was passed setting aside various assessment orders with a direction to the AO to re-determine the veracity of loan obtained from M/s. Shalini Holdings Ltd. In pursuance of the direction of Pr. Commissioner of Income Tax under section 263 of the Act, the AO framed assessment under section 143(3) r.w.s 147 r.w.s. 263 of the Act dated 06.12.2017. The AO made addition of INR 1,00,00,000/- towards unexplained cash credit received from M/s. Shalini Holdings Ltd. and also added INR 1,80,000/- towards unexplained interest expenditure under section 69C of the Act. 5. Aggrieved the assessee preferred appeal before the Ld.CIT(A) who in turn denied any relief. 6. Further aggrieved, the assessee preferred appeal before the Tri....
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....ase of repayment of earlier loan given to the said entity and therefore, the assessee is under no obligation to prove the source of amount collected by way of repayment of loan in view of several decisions such as [a] Pr.CIT vs Veedhata Tower P. Ltd. ITA No.819 of 2015 (Bom-HC); [b] Pr.CIT vs SBD Estates P. Ltd. ITA no.1356 of 2015 (Bom-HC); and [c] ITO vs Vijay Dewellers Pvt. Ltd. ITA No.141/Mum/2018 dated 30.01.2019. 8.3. The Ld. Counsel for the assessee next pointed out that the assessment in the case of M/s. Shalini Holdings Ltd. for Assessment Year 2009-10 in question has been framed under section 153C/153A of the Act vide order dated 28.03.2013. No adverse finding had been recorded by the AO on the activities of M/s. Shalini Holdings....
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....oid. This, in turn, has s vitiated the consequential 263 order and the impugned re-assessment order in the present proceedings. (iii) The re-assessment order under appeal is barred by limitation under section 153(5) of the Act. (iv) The re-assessment notice in the earlier proceedings was issued without any application of mind and multiple other infirmities while recording the reasons under section 148(2) of the Act. We shall deal with the contentions raised on behalf of the assessee in the subsequent paragraphs as and when it is considered expedient. 10. The Ld. Sr. DR for the Revenue on the other hand, relied upon the reassessment order passed in pursuant of revisional directions and first appellate order thereon. 11. We have carefu....
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....nt of loan to M/s. Shalini Holdings Ltd. The receipt of money by way of repayment of loan earlier granted cannot be taken in the same pedestal as that of receipt of loan per se. The requirement of proving creditworthiness in such a situation of repayment has been read down by the Co-ordinate Bench of the Tribunal in Pr.CIT vs SBD Estates P. Ltd. and ITO vs Vijay Dewellers Pvt. Ltd. (supra). It was observed that in the case of repayment of loan earlier given by the assessee, there is no requirement on the part of the assessee to prove the source of funds of the borrower making repayment towards its existing obligation. Similar view has been expressed in Pr.CIT vs Veedhata Tower P. Ltd. & SBD Estate (supra). Thus on this score itself on stand....