AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 165
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....bunal praying for the condoning the delay. On perusal of the condonation petitions and the reasons stated for delay in filing the appeals, we find that reasons to be genuine and bonafide. The Ld. D.R did raise objections in condoning the delay. Keeping in view reasons explaining the delay in the condonation petitions as well as judicial pronouncements that the case should be decided on merit and technicality should not be a bar to decide the issue, the delay in filing the appeals is hereby condoned and we adjudicate the COs of the assessee in the ensuing paras. 03. We also observe from the appeal folder that there is a delay of 50 days in ITA No.2245/KOL/2024 for A.Y. 2016-17 and 52 days in ITA No.2196/KOL/2024 for A.Y. 2018-19, in filing the appeals by the department in support of which condonation petitions were filed. It was stated in the condonation petitions that the delay had occurred due to obtaining the administrative approvals from the competent authorities and accordingly, the delay may be condoned. The ld. AR, on the other hand, did not oppose the condonation of delay. Considering the reasons cited before us, we are inclined to condone the delay and admit the appeals ....
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....ue raised in ground no.3 was rejected and dismissed. 07. After hearing the rival contentions and perusing the materials available on record, we find that the assessment in this case were framed u/s 143(3) vide order dated 28.03. 2016. Thereafter, the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 01.02.2021, after recording the reasons to believe copy of which is available at page no.80 to 83 of the Paper Book of the assessee. We observe from the said reasons that the AO has not recorded any satisfaction or finding as to failure of the assessee to disclose any information truly and materially in the return of income filed or during the assessment proceedings u/s 143(3) of the Act. Therefore, the reopening of assessment does not meet the parameters as provided under First proviso to Section 147 of the Act. The proviso to Section 147 of the Act provides that where an assessment u/s 143(3) has been framed and four years have elapsed from the end of the relevant assessment year then the reopening u/s 147 of the Act can only be made if there is failure on the part of the assessee to disclose any information fully and truly disclosing all ....
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....25 for A.Y. 2014-15 by quashing the reopening of assessment u/s 147 of the Act, the appeal filed by the Revenue challenging the order of ld. CIT(A) deleting the additions on merit becomes infructuous and consequently, dismissed. A.Y. 2015-16 CO No. 44/KOL/2025 012. The ld. Counsel for the assessee did not press the issue raised in the cross objection and therefore, the Cross Objection filed by the assessee is dismissed as not pressed. ITA No. 2187/KOL/2024 013. The Revenue has raised following grounds of appeal in ITA No. 2187/KOL/2024 for A.Y. 2015-16: - "1. That on the facts and circumstances of the case, whether the Ld. CIT(A) is correct in deleting the addition of Rs. 2,85,00,000/- bogus unsecured loan u/s. 68 of the Income Tax Act, 1961 ignoring the fact that the assessee has failed squarely to prove the Identity and creditworthiness of the loan creditors and the genuineness of the impugned transactions. 2. That on the facts and circumstances of the case, whether the Ld. CIT(A) is correct deleting the disallowance of interest against unsecured loans amounting to Rs. 19,76,710/-, whether the assessee itself failed to justify the genuineness of t....
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....re not complied with by the lenders/ loan creditors. 016. The ld. CIT(A) in the appellate proceedings allowed the appeal of the assessee by passing a very detailed and reasoned order by observing that the loans raised by the assessee from seven parties were repaid either in the subsequent assessment years and in some cases within the same financial year. The details of these loans and repayments are given in para no.6.12 (i) of the appellate order. The ld. CIT(A) has also taken note the observations of the ld. AO that the lender companies were Jama Karchi companies which accordingly to the ld. CIT(A) is incorrect and against the facts on records by referring to the information furnished by the loan creditors by responding to the notices issued u/s 133(6) of the Act. The ld. CIT(A) noted that the ld. AO has not referred to any incriminating material seized in the course of survey on the basis of which assessment was reopened. The ld. CIT(A) in Para no.6.12(4) of the Act noted that the ld. AO heavily relied on the statement of the entry operators and data base of the investigation wing, Kolkata for arriving at the conclusion that loan creditors were Jama Karchi companies, however,....
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.... the same cannot be added us/ 68 of the Act. Similarly, the case of assessee is squarely covered by the decision of the Hon'ble Gujarat High Court in the case of Ambe Tradecorp (P.) Ltd., reported in [2022] 145 taxmann.com 27 (Gujarat), wherein it has been held as under: - "3. The issue in this case arose in respect of the assessment year 2012-2013. It appears that the two loan transactions of Rs. 8,50,00,000/- and Rs. 23,70,00,000/- received by respondent assessee from one M/s. J.A Infracon Private Limited and M/s. Satya Retail Private Limited were treated by assessing officer to be sham in the sense that the creditworthiness etc. of the giver of the loan were not established. Accordingly, the assessing officer made addition under section 68 of the Act. 3.1 While the assessing officer dealt with unexplained cash credit from the M/s. Satya Retail Private Limited and from M/s. J.A Infracon Private Limited in his order in paras 5.1 and 5.2 respectively, the Commissioner of Income-tax in the appeal preferred by assessee found on facts and the material before it that the said two cash creditors had been holding there identity, creditworthiness and genuineness in respe....
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....action of loan, second is the creditworthiness of such parties and thirdly the genuineness of the transaction. It was submitted in vain that neither of the ingredients were satisfied. 5. As discussed above, since the requisite material was furnished by assessee showing the identity and since the assessee was not beneficiary when the loan was repaid in the subsequent year, even the ingredients of creditworthiness and genuineness of transaction were well satisfied. 6. The Tribunal rightly recorded in para 29 of the judgment, "Once repayment of the loan has been established based on the documentary evidence, the credit entries cannot be looked into isolation after ignoring the debit entries despite the debit entries were carried out in the later years. Thus, in the given facts and circumstances, were hold that there is no infirmity in the order of the Ld. CIT-A. " 7. For the reasons recorded above, no question of law muchless substantial questions arises in this appeal. It stands meritless and accordingly dismissed. 018. Similarly, the ld. CIT(A) noted that the ld. AO has relied on the statement of the entry operators and data base of the investi....
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....me of the assessee thereby making an addition of Rs. 1,54,718/-. 023. In the appellate proceedings, the ld. CIT(A) in Para no.4.1 extracted the details of purchases from four parties aggregating to Rs. 3,09.43,483/- on which the ld. AO disallowed 0.5% of the total purchases on estimated basis which comes to Rs. 1,54,718/-. The ld. CIT(A) noted that the assessee had been making purchases from these parties on regular basis and were duly supported with the vouchers, delivery challans and bills receipts etc. and the payments were made through banking channels. The ld. CIT(A) even noted that the weighing slips were also furnished by the assessee. Finally, the ld. CIT(A) deleted the addition after examining the evidences furnished by the assessee. The ld. CIT(A) recorded a specific finding in respect of invoices issued by M/s Eskay Enclave Pvt Ltd., wherein the ld. AO observed that vouchers no. WB25D5958 was ambulance and not lorry. The ld. CIT(A) on the basis of reply of the assessee with evidences recorded a finding that the alleged vehicle is a heavy goods carrier and not ambulance. 024. After hearing the rival contentions and perusing the materials available on record, we find....
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....ssessment order that assessee had entered into several transactions of cash loans during F.Y. 2015-16 and 2016-17 and assessee has not paid interest on unsecured cash loans taken during the year under consideration. Accordingly, the ld. AO estimated the interest paid by the assessee at the rate of 12% on total cash loans taken and thus made an addition of Rs. 1,46,55,000/- the calculation whereof (interest) is given at para no.11 of the assessment order and same was added to the income of the assessee. 031. In the appellate proceedings, the ld. CIT(A) deleted the addition by observing and holding as under: - "8.14.1 I have carefully considered the facts of the case, the Assessment Order of the AO and the submission of the appellant. The AO has made the addition of Rs. 1,46,55,000/- on account of interest expenses paid in cash on the cash loan received through Finance broker Sanwaria and Kasera Group. As per AO search u/s 132 of the Act was conducted at the premises of the Finance broker i.e. Sanwaria and Kasera on 30.11.2018 and in search several incriminating documents were found and seized, wherein transaction relating to loan transactions with MREL group were recorde....
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....r banking channels and duly reflected in the books of accounts of the assessee. The interest payments on those loans are also accounted for in the books of account and paid through banks. Assessee has also pointed out that against the assessee penalty proceeding for taking cash loan and refunding u/s 271D and u/s 271E of the act was initiated by the Addl. Commissioner, Central Range -1, Kolkata and he has after due verification found that the assessee has not taken or refunded any cash loan. Hence, he dropped the penalty proceeding initiated u/s 271D and 271E vide order dt. 03.08.2022 for the year under consideration. The claim of the appellant was verified and found to be correct. AO himself has verified all the loan taken in the regular books of account of the assessee is evident from the assessment order and made addition of Rs. 1,46,55,000/- separately. This shows AO has alleged these as cash loan is factually wrong. 8.14.5 Further, the appellant has deducted TDS on the payments of these loans and has claimed these interest payment in P/L Accounts. So, there is no any reason found to treat these loans as received in cash and interest of Rs. 1,46,55,000/- have been paid....
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....034. The issue raised in ground no.1 is against the deletion of disallowance of Rs. 1,07,54,192/- by the ld. CIT(A) as made by the ld. AO in respect of bogus purchases. 035. The facts and circumstances are similar to ground no.3 in ITA No. 2187/KOL/2024 for A.Y. 2015-16, which is discussed and decided by us supra. Hence, taking similar view in this appeal, the ground no.1 of Revenue's appeal is dismissed. 036. The Revenue has raised ground no.2, which is against the disallowance of interest of Rs. 44,83,667/-. 037. The facts and circumstances are similar to ground no.2 in ITA No. 2187/KOL/2024 for A.Y. 2015-16, which is discussed and decided by us (supra). We note that ld. CIT(A) noted that the interest was disallowed on the loans borrowed in earlier assessment years. The ld. CIT(A) even noted that the addition was made on the basis of third-party statement without allowing any cross examination to the assessee. It was also noted in the appellate order that the assessee has furnished all the evidences during the assessment proceedings which were not flawed by the AO. For the sake of ready reference, we extract the operative part of the appellate order as under: - ....
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.... or for the purpose of making addition of Rs. 44,83,667/- to the total income. Thus, absence of reference of impounded material relating to the unsecured loan in the assessment order of the AO is giving ample reason to suspect that nothing incriminating relating to loan transactions were found in the survey against the assessee. 4.10(4) Furthermore, the AO has heavily relied on the statement of entry operators and data base of investigation wing, Kolkata in arriving at the conclusion that the above loan creditors were the Jamakharchi/Paper Companies and have been used for giving accommodation entries in the form of Bogus loans to the assessee. However, the AO has forgotten to evaluate evidentiary value of the statement of alleged entry operators and database of Investigation Wing for making addition in this case. First and foremost is that the database of Investigation Wing, Kolkata is neither a public documents nor a document duly certified by a court of law/Rules/Acts/Circular/ Instructions etc. for its use as an evidence in Income Tax matter. So these details or statements cannot be directly used for making addition in a case. Rather, the AO should have taken the help o....