2025 (11) TMI 991

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....NFAC, Delhi under Section 147 r.w.s 144 read with section 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for Assessment Year 2013-14. 2. The assessee filed its return of income under Section 139(1) of the Act on 30.09.2013 declaring loss of Rs. 29,337/- for Assessment Year 2013-14. On the basis of information received from the DCIT, Circle 9(1) dated 05.03.2020 stating that a search and seizure conducted on 23.03.2018 on Luv Kush Group by the Investigation Wing, Guwahati and from the post search investigations it revealed that one M/s Vagmi Financials Services Pvt. Ltd. previously known as M/s Fitworth Financials Services Pvt. Ltd.) had made a transaction of Rs. 1 crore with the assessee before us, during the Fin....

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....s. 1 crore which was alleged to have been received from one M/s Fitworth Financial Services Pvt. Ltd. in the form of unsecured loan in the year under consideration which was absolutely an incorrect finding of fact as there was no transaction entered with the said company by the assessee to the tune of Rs. 1 crore. At no point of time during the Financial Year 2012-13 the amount of Rs. 1 crore was credited in the bank account of the appellant assessee. In fact, the assessee paid cash of Rs. 1,10,67,266/- on 30.03.2013 to M/s Fitworth Financial Services Pvt. Ltd. through RTGS. As the assessee has not received the said amount of Rs. 1 crore from M/s Fitworth Financial Services Pvt. Ltd. the question of recording of ownership of the said money ....

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....d. AO seems to be clearly arbitrary so as to reopen assessment against the assessee which on a wrong finding of fact and conclusion thereof by making addition in the hands of the assessee under Section 69A of the Act is, thus, bad in law. On the other hand, the Ld. DR relied upon the order passed by the authorities below. 4. We have heard the rival submissions made by the respective parties and we have also perused the relevant materials available on record. It appears that the assessment was reopened under Section 147 of the Act by the Ld. AO solely on the basis of an information received from the DCIT, Circle 9(1) that the assessee has received an amount of Rs. 1 crore from one M/s Fitworth Financial Services Pvt. Ltd. in the form o....