TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 895
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....gal and liable to be quashed. (2) That the learned Pr. CIT erred in law and on facts in setting aside the order of the AO passed u/s. 147 r.w.s. 144B of the Income Tax Act, 1961 with a direction to conduct enquiry and passed a fresh assessment order denovo. On the facts and circumstances of the case, the Pr. CIT erred in disregarding the facts available on assessment record that sufficient enquiry was conducted by AO by obtaining various documents which have been verified and on such basis income is assessed. (3) That the learned AO passed the assessment order u/s. 147 r.w.s.144B after conducting full enquiries and verification of record and after satisfying has passed the assessment order. On the facts available on record the learned Pr. CIT erred in holding that AO did not make enquiries and verification required in respect of financial transaction mentioned in the order u/s. 263. (4) That the learned Pr. CIT erred in law and on facts in assuming jurisdiction u/s 263 on the basis of reappraisal of evidence and holding the assessment order passed u/s 147 r.w.s. 144B of the IT Act as erroneous and prejudicial to the interest of revenue. On the facts and c....
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....ted 31.03.2022 as information was available that income has escaped assessment. In response, Return u/s 148 was filed on 30.04.2022 declaring Total Income at Rs. 2,60,860/-. Assessment was completed on 24.03.2023 by NaFAC assessing Total Income at Rs. 4,28,820/- stating that this was the Returned Income and Income computed u/s 143(1)(a) which is incorrect, as income returned was Rs. 2,60,860/- and the same income was computed u/s 143(1)(a) of the Act. The assessment order thus erroneously took the returned and assessed income at the Total Income of the assessee at Rs. 4,28,820/-. b. In the show cause notice issued on 14.03.2023 the Assessing Officer stated that the assessee failed to establish the creditworthiness of the company Navdurga Advisory Private Limited (NAPL) and accordingly the amount of Rs. 40 lakhs received in F.Y. 2017-18 by it was proposed to be added u/s 68 of the Act. However, on the assessee's response that the loan was Rs. 20 lakh lakhs without any inquiry or verification the AO concluded that the transaction was of only Rs. 20 lakhs adding that the investigation wing due to oversight while preparing report, included the amount of Rs. 20 lakhs given ....
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....R. furnished a detailed Paper Book containing following documents:- * Notice u/s 142(1) dt. 29-10-2022; * Submission dt. 11-11-2022; * Issue Letter dt. 05-11-2022; * Issue Letter dt. 06-01-2023; * Notice u/s 142(1) dt. 21-02-2023; * Submission dt. 24-02-2023; * Show Cause Notice dt. 14-03-2023; * Submission dt. 17-03-2023; * Notice u/s 133(6) dt. 02-03-2023 and Response; * Notice u/s 133(6) dt. 14-03-2023 and Response; * Notice u/s 263 dt. 26-02-2025; * Submission dt. 05-03-2025 in response to notice u/s 263; * Notice u/s 263 dt. 06-03-2025; * Submission dt. 07-03-2025 in response to notice u/s 263; * Ledger of NAPL for the period 01-04-2010 to 31-03-2020; * Financial Statements of NAPL for F.Y. 2017-18." 6. The learned A.R. also furnished a synopsis which is reproduced below for the sake of clarity:- "(1) Assessee has obtained loan of Rs. 20,00,000/- from M/s. Navdurga Advisory Pvt. Ltd. (NAPL) which was repaid to NAPL in F.Y. 2018-19 and F.Y. 2019-20. The transaction of loan acceptance and repayment have been carried out by ba....
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.... credits in the Federal Bank Account is enclosed. 3. Pg.5, Para-3.2 * As stated by the assessee during assessment proceedings that there was no written documentation regarding the taking / fiving of this amount, as such this required deeper scrutiny by the A.O. Notice u/s 142(1) dt. 29/10/2022 - Point 2. * Please furnish agreement / contract depicting terms and conditions of loan taken from NAPL. Pg.4, Para-3 * There is no written agreement / contract for loan taken from Navdurga Advisory Pvt. Ltd. The funds are taken as per the need and terms of repayment were fixed orally. 4. Pg.5, Para-3.2 * The A.O. had sought information from NAPL on the transactions in the 133(6) notice issued to it. However, no response on this quiery was furnished by NAPL to the A.O. Pg.21, Last 5 lines. Para- 3.2 * Meanwhile, during the course of assessment proceedings to verify the identity, creditworthiness and genuineness of transaction made by the assessee, notice u/s. 133(6) was issued to the NAPL on 14/03/2023 from whom assessee has taken loan and in compliance thereto, a detailed reply was received from the company on 17/03/2023, ....
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....Gupta v. PCIT-[2017] 88 taxmann.com 831 [2019] 106 (5) If detailed inquires made by AO, revision u/s 263 is not sustainable Supreme Court in the case of PCIT vs. Shree Gayatri Associates taxmann.com 31 (SC) (6) It has been informed that the department has credible information and material to indicate that NAPL is a shell company. But such credible information and material is never confronted to assessee. It has also been informed that law enforcement agency has identified NAPL as a Shell Company. But the details as to which law enforcement agency identified so and on what basis is not provided. The mere allegation is not suffice. (7) It has been time and again informed at every stage of the proceedings i.e. during 148A, during 147 and during 263 that the actual loan amount taken from NAPL is Rs. 20 Lakhs and not Rs. 40 Lakhs. In Pg. 5, Para 3.2.1 of the Order u/s 263, the Ld. PCIT has categorically alleged that the 'AO has failed to verify with the entity from where the information was received in respect of Rs. 40,00,000/- whether or not the amount of loan was Rs. 40,00,000/- or Rs. 20,00,000/- and also failed to share his view in respect of....
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....s. 20,00,000/- given by NAPL to Vijay Kumar Goyal as mentioned above in bank account was included in the name of assessee. On further examination of the investigation report it is found that all the names of person who have taken loan from NAPL and shown in the bank account are found except the name of Shri Vijay Kumar Agarwal. This proves that the assessee has taken loan of only Rs. 20 lakhs from NAPL. Thus the contention of the assessee stands found correct. Meanwhile, during the course of assessment proceedings to verify the identity, creditworthiness and genuineness of transaction made by the assessee, notice u/s. 133(6) was issued to the M/s. Navdurgra Advisory Pvt LTD(NAPL) on 14.03.2023 from whom assessee has taken loan and in compliance there to, a detailed reply was received from the Company on 17.03.2023. xxxxx xxxxx xxxxx The above submission made by the lender company as well as reply filed by the assessee enclosing confirmation of NAPL mentioned above have been perused and found that the Company NAPL has active status under Companies Act and is registered at Nagpur and assessed to tax having PAN AACCN9619D. Thus, the identify of lender company stan....