2025 (6) TMI 2009

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.... in Proceedings No. TBA/REV/F/REV5/2023- 24/1058852277(1) under section 263 of the Income Tax Act, 1961 (hereinafter referred to as the Act) dated 18.12.2023 against the order of assessment passed u/s 143(3) of the Act dated 21.04.2021 by the ACIT, Circle-4, New Delhi (hereinafter referred to as "ld. AO"). 2. All the appeals are having identical issues and hence they are taken up together and disposed of by this common order for the sake of convenience. With the consent of both the parties, the appeal of the assessee for AY 2013-14 in ITA No. 218/Del/2024 is taken as the lead case and decision rendered thereon shall apply to other assessment years in respect of identical issues except with variance in figures. 3. The only effective is....

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....enuine transactions. This order was passed by the ld CIT(A) on 24.04.2025. When the appeal was pending before the ld CIT(A), the ld PCIT invoked revision jurisdiction u/s 263 of the Act for the purpose of disallowing the interest paid on unsecured loans since the unsecured loans were sought to be treated as accommodation entries by the ld AO and added as unexplained cash credit u/s 68 of the Act. For this purpose, the ld PCIT passed a revision order u/s 263 of the Act by treating the order of the ld AO as erroneous inasmuch as it is prejudicial to the interest of the revenue. In the said revision order passed u/s 263 of the Act, the ld PCIT directed the ld AO to disallow the interest paid on bogus unsecured loans u/s 37(1) of the Act. 5.....

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....f interest disallowance emanates out of issue which is in dispute before the ld CIT(A). Hence, the disallowance of interest was well within the enhancement powers available to ld CIT(A) and the same cannot be construed as a new source of income. Had it been a new source of income, then the ld CIT(A) cannot make such disallowance using his enhancement powers. In that scenario, the ld PCIT would be justified in invoking revision jurisdiction u/s 263 of the Act for taking care of the omission made by the ld AO. But that is not the case in the present appeal. As stated earlier, the principal portion of the unsecured loans was already subject matter of dispute before the ld CIT(A) and interest portion could have been very well dealt by the ld CI....