2025 (6) TMI 1457

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....7, arising from the assessment order dated 23.03.2022 passed under Section 147 r.w.s.144B of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] by the Assessing Officer [hereinafter referred to as 'AO']. 2. Brief facts of the case are that the assessee has filed its return of income for AY 2016-17 on 15/10/2016 declaring total income of Rs. 16,40,720/-. The original assessment was completed u/s.143(3) of the Act on 09/12/2018 at total income of Rs. 16,40,720/-. Thereafter, the case was re-opened for the reason that the loan transactions were not verified and no loan confirmation was filed by the assessee. The re-assessment was completed u/s.147 r.w.s.144B of the Act on 23/03/2022 at total income of Rs. 68,83,122/-, wherein t....

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....m 20 persons, the details and confirmation of which were produced by the AO. The AO had also accepted these fresh unsecured loans. However, there was increase in total unsecured loan balance by Rs. 2,83,42,402/- during the year. The AO had treated the difference of Rs. 52,42,402 (Rs. 2,83,42,202 - Rs. 2,31,00,000) as unexplained and made the addition. The Ld.Sr.Counsel explained that the amount of Rs. 52,42,402/- represented interest credit during the year on the unsecured loans which were added to the closing balance. He submitted that the AO had failed to consider the accrued interest which remained unpaid during the year. According to the Ld.Sr.Counsel, there was no difference in the unsecured loan account and the addition made by the AO....

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....ed 21/02/2022. As stated above, we have received fresh unsecured loans to the tune of Rs. 2,31,00,000/- from 20 parties. A copy each of groupings of unsecured loans from our books, details of unsecured loans containing particulars of documentary evidences, acknowledgement of return of income of last 3 years and bank statement reflecting loan entries of the lenders as indicated in the details of unsecured loans is enclosed and collectively marked as Annexure B. Due to paucity of time, we are still in the process of collecting the required information in respect of pending parties and will submit the same at the earliest." 8.1. As explained by the assessee, the interest credit during the year was Rs. 61,14,262/- on which TDS of Rs. 6,11,42....