2025 (9) TMI 443

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....Sr. DR ORDER PER RAJESH KUMAR, ACCOUNTANT MEMBER: The present appeal has been preferred by the assessee against the order dated 12.02.2025 of the National Faceless Appeal Centre [hereinafter referred to as the "ld. CIT(A)"] passed u/s 250 of the Income Tax Act, 1961 [hereinafter referred to as the "Act"]. 2. In Ground No.2(b), the assessee has challenged the order of the ld. CIT(A) con....

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....hat the assessee was a beneficiary of accommodation entries in the form of bogus unsecured loans. The assessee replied to the notice issued u/s 148 of the Act by letter dated 22.05.2019 stating that the return of income u/s 139(1) of the Act may kindly be treated as filed in compliance to notice u/s 148 of the Act. Thereafter, statutory notice u/s 142(1) along with questionnaire was issued which w....

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.... period of four years from the end of the relevant assessment year and therefore, the reassessment of the assessee u/s 147 can only be made subject to the satisfaction of the condition envisaged under 1st proviso to section 147 of the Act which states an assessment has been made u/s 143(3), the reopening u/s 147 of the Act can only be made if the income has escaped assessment due to non-disclosure....

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....folder. We observe from the same entries that the loans were repaid during the year. We also note that the interest has been paid and TDS has been deducted u/s 194A of the Act from both the parties. Therefore, once the loans raised by the assessee and are repaid then the assessee cannot be said to be beneficiary of the accommodation entry. The case of the assessee is squarely covered by the decisi....