TaxTMI 
TaxTMI 
2025 (7) TMI 1501
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....ss 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 confirming illegal assumption of jurisdiction of the AO when the assessment has been made on ....
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....nd 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. 2012-13 which proves the fact that the TDS deducted on the interest expense incurred on unsecured loans which has been duly paid and deposited to the government's bank account. Gro....
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....oid-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 information. Ground No.2: 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 ignor....
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....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 ignoring the crucial fact that the Appellant had duly repaid these unsecured loans through proper banking channel. (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 crucial fact that the Appellant had paid interest on these unsecured loans to loan parties an....
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....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-terminus to that of AO and in the peculiar facts of the case, NFAC could have made inquiry with the loan parties to verify the transaction independently. Ground no 6: Addition of rs 7,62,833/-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. 7,62,833/-being interest paid on the unsecured loans without considering the fact that the Appe....
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....ral 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 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 mention the designation of appropriate authority from whom approval was obtained prior to 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 e....
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....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 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. 26,32,813/- on addition made to Fixed Assets without appreciating the fact that the Appellant had ....
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....e 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 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 15.03.2016 under section 143(3) read with section 147 of the I.T. Act, 1961. Ground No.8: Initiation Of Penalty Provisions 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 272A(1)(c), while framing assessment and passing order dated 15.03.2016 under section 143(3) read with section 147 of the I.T. Act, 1961. The Appellant craves leave to add, amend, alter, modify and delete any of the above ground." ITA....
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....ng 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 void-ab-initio (ii) Because, the notice u/s. 148 is issued without making any inquiry on the part of AO and is issued merely on the basis of information of Director General of Income Tax (Investigation), Mumbai. (ii) Because the reasons recorded by Ld.AO is incomplete and without quantifying the amount of income which has escaped assessment. c) In the facts and circumstances of the case, National Faceless Appeal Centre (NFAC) erred in ignoring the crucial fact that the Appellant went through bad time in various civil and criminal proceedings in last 10 years which also let to forceful acquisition of possession of business premises, business stock and business asset lying at business premises by one of the business creditor with which Appellant had dispute related to financial transactions wherein various r....
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....ds 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 that the Appellant had made claim after getting the books of accounts duly audited from chartered accountant u/s 44AB of the Income Tax Act and payment for acquisition of fixed Assets are through proper Banking Channel. Ground No 6: Addition Of Rs. 4,48,09,500 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 during the course of re-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 in respect of unsecured loan ignoring the crucial fact that the Appellant had duly repai....
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....roceedings 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, modify and delete any of the above ground." 3. Since common issues are involved in all the appeals and the facts and circumstances are identical, all the four appeals are being disposed off by a common order. For the sake of convenience, ITA No. 3270/Mum/2024 for AY 2010-11 is taken up as the lead case. 4. Brief facts are that the assessee filed return declaring income of Rs. 2,00,520/- for AY 2010-11 on 30.09.2010. Return was processed u/s. 143(1) at the returned income. The assessee has shown income from wholesale trading of readymade garments and hosiery items. Subsequently, on receipt of information from sales tax/ Vat department regarding bogus purchases made from hawala dealers, the case was reopened and a notice u/s. 148 was issue on 05.09.2014. Ld. AO noted that the assessee had shown bogus purchases from the following parties: Name of the party who have issue bogus bills PAN Amount of such bogus bill (Rs.) C.K. Enterprises AMEPS0125N 63,07,627 Sheetal Trading Co. ....