2025 (7) TMI 1220

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.... Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. 147 of the Act on 12-12- 2019. The sole grievance of the assessee is confirmation of addition of Rs.75.00 Lacs. The assessee has also assailed reassessment proceedings on legal grounds. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. Assessment Proceedings 2.1 The assessee's case was reopened as per due process of law pursuant to the receipt of information that the assessee received amount of Rs.75 Lacs from Smt. Surjeet Kaur which amount was deposited in cash in her HDFC account on 17-12-2011 and then transferred to the assessee-company on same date. The bank account of the lender was opened on 21-11-2011 and closed on 22- 10-2013 by ban....

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.... to furnish Income Tax Return, address and PAN of the lender. The conditions of Sec.68 were not fulfilled and accordingly, the amount of Rs.75 Lacs was added u/s 68 and the assessment was framed. Appellate Proceedings 3.1 The assessee contended that it was not required to explain the source of the source since the amendment to Sec.68 was with effect from 01-04-2013. The Ld. CIT(A) observed that the amendment was not applicable to unsecured loans. The assessee failed to prove the genuineness of the unsecured loans and accordingly, the addition, on merits, was confirmed. 3.2 The assessee also questioned the validity of assessment proceedings. The Ld. CIT(A) observed that the 5 opportunities of hearings were provided to the assessee and co....

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....Aggrieved, the assessee is in further appeal before us. Our findings and Adjudication 4. From the facts, it is amply clear the pursuant to receipt of information from DDIT (Inv.), Bhatinda, the case of the assessee was reopened and notice u/s 148 was issued on 30-03-2018. It transpired that Smt. Surjeet Kaur deposited cash of Rs.75 Lacs in her bank account and transferred the same to the assessee on same day. The funds were, in turn, were transferred by the assessee to another concern. In FY 2013-14, the loan was converted into share capital and the lender became shareholder in assessee-company. However, the investigation revealed that the bank account was reopened without following KYC norms. Further, Smt. Surjeet Kaur was not a residen....