TaxTMI 
TaxTMI 
2025 (7) TMI 1501
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.... (b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming illegal assumption of jurisdiction of the AO in the issuance of the notice dated: 01.04.2015 u/s 148 even though the fact that AO failed to mention the designation of appropriate authority from whom approval was obtained prior to the issuance of notice dated: 01.04.2015 u/s 148. (c) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming illegal assumption of jurisdiction of the AO when the order dated: 14.12.2016 is passed in complete defiance to the principle of natural justice and without affording adequate opportunity to the appellant to put his case making the impugned assessment order illegal, invalid and void ab initio. (d) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming illegal assumption of jurisdiction of the AO when the impugned order dated: 14.12.2016 is illegal, invalid and void-ab-initio in absence of the issue of notice u/s 143(2). (e) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in conf....
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....nal Faceless Appeal Centre (NFAC) erred in confirming estimation of income of Rs. 2,11,24.992/- being 8% of the gross sales shown in VAT Returns. Ground no.6: Addition of Rs. 5,733/- as 8% of contract receipts are disallowed. (a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in estimating income of Rs. 5,733/- being 8% of the gross contract receipts Ground No 7: Addition Of Rs 10,99,31,342/- Interest Accrued On Loans And Advances. (a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts in confirming additions of Rs. 10,99,31,342/- being interest accrued on the loans and advances given without considering the fact that the Appellant has correspondingly incurred the interest expense on unsecured loans obtain from third parties which is source of loans and advances given on which interest is assessed as income of appellant. (b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts by ignoring the details furnished by the Appellant that the TDS return is filed by the Appellant for the F.Y.....
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....u/s. 271(1)(C), 271B and u/s 271(F) while framing assessment and passing order dated 31.03.2015 under section 143(3) of the I.T. Act, 1961." ITA No. 3271/Mum/2024 (AY - 2012-13): Ground No 1: Illegal Assumption Of Jurisdiction, Order Passed Is Illegal Void-Ab-Initio (a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming that impugned order is illegal, invalid and void-ab-initio in absence of valid notice u/s. 143(2). (b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming impugned order which has been passed without affording "reasonable and "adequate opportunity of hearing since AO disclosed his mind and asked for details at fag end of Assessment proceeding i.e 27.03.2015 giving no time to Appellant to respond (c) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming illegal assumption of jurisdiction of the AO which has been assumed on the basis of information received from third party and without providing copies thereof so as to allow opportunity to Appellant to rebut the said informa....
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....ice department Ground No 3: Addition Of Rs. 11,83,00,000 As Unexplained Cash Credit U/S 68 (a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming additions made by AO in treating unsecured loans taken during the impugned assessment year even though Appellant duly placed on record the details such as Confirmation of loan party with PAN and address, balance sheets, returm of income together with affidavits and other relevant documentary evidence during the course of assessment proceedings in support thereof, (b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming additions made by AO relying solely on report of the DDIT (Inv) even though the copy of the alleged report was never provided to the Appellant (c) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) unsecured erred in rejecting the affidavit submitted in support of the addition of the loan. (d) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming additions made by AO in respect of unsecured loan igno....
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....ssment proceedings in support thereof. (b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming additions made by AO relying solely on report of the DDIT (Inv) even though the copy of the alleged report was never provided to the Appellant (c) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming additions made by AO in respect of unsecured loan ignoring the crucial fact that the Appellant had duly repaid these unsecured loans through proper banking channels. (d) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming additions made by AO in respect of unsecured loan ignoring the crucial fact that the Appellant had paid interest on these unsecured loans to loan parties and after deducting tax at source (TDS) as per applicable law which itself proves the genuineness of loan transactions. (e) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming additions made by AO in respect of unsecured loan ignoring the provisions of law that powers of NFAC are co-termin....
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.... of the AO in the issuance of the notice dated: 05.09.2014 u/s 148 even though the fact that the said notice is wholly without jurisdiction, illegal, invalid and void-ab-initio. b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming illegal assumption of jurisdiction of the AO in the issuance of the notice dated: 05.09.2014 u/s 148 even though the fact that the said notice is issued without making any independent inquiry and was issued merely on the basis of information of Director General of Income Tax (Investigation), Mumbai. Ground No 2: Proceedings Vitiated In Absence Of Approval Of Appropriate Authority Under Section 151 a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming illegal assumption of jurisdiction of the AO in the issuance of the notice dated: 05.09.2014 u/s 148 even though the fact that AO failed to obtain approval from appropriate authority as envisaged under section 151 of the Income Tax Act, 1961 \ (b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in confirming illegal assumption of ....
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....tions wherein various records and evidences were also used to be kept and preserved. The Appellant along with their representative had been frequently informing the AO the unprecedented situation by submitting the details relating to litigation, copy of court documents and FIR filed with the Police department. (d) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in not quashing the re-assessment proceedings even though NFAC vide its order dated: 24.05.2024 deleted the addition of Rs. 81,97,053/- being estimation of Gross profit (Refer Point no.3 of Order u/s. 250) made by AO in re-assessment proceedings which implies that the very foundation of reasons for re-opening of assessment does not survive leading to illegal assumption of jurisdiction by AO in reassessing the total income of the Appellant. Ground No 4: Addition Of Rs. 26,32,813/- By Disallowing Depreciation Claimed On Addition Made To Fixed Assets (a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts in confirming disallowance of claim of depreciation amount of Rs. 26,32,813/- on addition made to Fix....
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....,90,668/- By Disallowing The Interest Paid On Loans a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts in disallowing Rs. 53,90,668 being interest paid on the unsecured loans without considering the fact that the Appellant has paid the interest on unsecured loans to loan parties in the through proper banking channel. b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts by ignoring that the TDS return is filed by the Appellant for the F.Y 2010-11 which proves the fact that the TDS deducted on the interest paid on unsecured loans has been paid and deposited to the government's bank account. c) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts by ignoring the details furnished by the Appellant during the Appellate proceedings before NFAC regarding confirmation of interest payment. Ground no 7: Charging interest u/s. 234a, 234b, 234c & 234d of the act. In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in dismissing ground r....
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.... the issuance of notice dated: 05.09.2014 u/s 148, as envisaged under section 151 of the Income Tax Act, 1961. Ground No 3: Serious Violation Of Principle Of Natural Justice (a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in ignoring the failure of the AO to conduct necessary inquiries, issuing summons/notices to examine loan parties and in ignoring the repayment details furnished by the Appellant and NFAC erred in, law and on facts in not remanding the issue of repayment of unsecured loans prior to the completion of appellate proceedings and forming adverse inference on the aspect that Appellant repaid unsecured loan in subsequent years. AND in the facts and circumstances of the case NFAC ought to have remanded the matter to the Assessing Officer to hold/conduct further inquiry. (b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in not adjudicating following grounds raised by the Appellant in appellate proceeding by before passing order u/s 250 of the Act reproduced as under: (i) Because, the notice u/s. 148 is wholly without jurisdiction, illegal, invalid and....
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....ming addition of Rs. 2,81,559 on account of disallowance under 40(a)(ia) of the Act without verifying the fact whether recipient of the sum has offered the same to the return of income so as to avoid double taxation of one source of income. Ground No 5: Addition Of Rs. 2,13,738 By Disallowing Depreciation Claimed On Addition Made To Fixed Assets (a) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts in confirming disallowance of claim of depreciation amount of Rs. 2,13,738 on addition made to Fixed Assets without appreciating genuine hardship faced by Appellant in not submitting the documentary evidence due to forceful acquisition of possession of business premises of the Appellant by one of the business creditor with which Appellant had dispute related to financial transactions wherein various records and evidences were used to be kept and preserved. (b) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts in confirming disallowance of claim of depreciation amount of Rs. 2,13,738 on addition made to Fixed Assets without appreciating the fact ....
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....n the interest paid on unsecured loans has been paid and deposited to the government's bank account. (c) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in law and on facts by ignoring the details furnished by the Appellant regarding confirmation of interest payment. Ground no 8: Charging interest u/s. 234a, 234b, 234c & 234d of the act. In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in dismissing ground raised by appellant with respect to the levy of interest under section 234A, 234B, 234C and 234D of the Income Tax Act, 1961 while framing assessment and passing order dated 16.12.2019 under section 144 of the I.T. Act, 1961. Ground No.9: Initiation Of Penalty Proceeding In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in dismissing ground raised by appellant with respect to the initiation of penalty proceedings u/s. 271(1)(C), 271(1)(b) and u/s 271(F)while framing assessment and passing order dated 16.12.2019 under section 144 of the I.T. Act, 1961. The Appellant craves leave to add, amend, alter, modif....
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....t the information in respect, of several lenders was incomplete as the addresses and/or PAN of the creditors were not mentioned. Accordingly, notices were issued to 54 such parties by the Ld. AO u/s. 133(6) of the Act. Since no response/ confirmation was received from 49 creditors the unsecured loans obtained from these entities amounting to Rs. 4,48,09,500/- were added u/s. 68 of the Act, on account of being unexplained cash credits. Consequently, interest on take unexplained cash credits to the extend of Rs. 18,32,495/- was also disallowed. 4.3. Further, Ld. AO noticed that as per the Schedule B, the TDS on expenses amounting to Rs. 2,81,559/- was not deducted. Accordingly, he proceeded to add this amount comprising of advertisement expenses (Rs.1,33,300/-), Professional Fees (Rs. 50,500/-) and brokerage (Rs. 97,759/-) to the assessee's income u/s. 40(a)(ia) of the Act. 4.4. Finally, the assessment was completed at an income of Rs. 4,87,83,780/- vide order u/s. 143(3) r.w.s 147 of the Act. Aggrieved with the order of Ld. AO, the assessee preferred an appeal before Ld. CIT(A). Vide order dated 24.05.2024, Ld. CIT(A) deleted the addition on account of bogus purchases after ho....