TaxTMI 
TaxTMI 
2026 (1) TMI 806
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....he circumstances of the case, the Ld. CIT(A) has erred in upholding the order of Ld. AO without considering the fact that the assessment completed u/s 147 r.ws 143(3) was bad in law on various technical and jurisdictional grounds. 3.0 That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in upholding the order of Ld. AO without appreciating the fact that recourse to section 147 of the Act would be unavailable in cases where the AO is empowered to proceed u/s 153C of the Act. 4.0 That, on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in upholding the order of L.d. AO without appreciating the fact that there was no failure on the part of the appellant to disclose fully and truly all material facts necessary for the assessment for the year under consideration and hence assumption of jurisdiction u/s 147 by issuance of notice u/s 148 beyond the period of 4 years was invalid and as such, could not be sustained in law. 5.0 That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in upholding the order of Ld. A.O without considering the fact that assumption of jurisdiction by issuing n....
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....the Ld. CIT(A) has erred in upholding the additions made by the Ld. AO u/s 68 on account on unexplained cash credits amounting to Rs. 30.50 crores and u/s 69 on account on investment made amounting to Rs. 12,70,36,200/- out of the unexplained funds without considering the facts and reply filed by the appellant. 10.2 That on the facts and circumstances of the case, the Ld. CIT(A) has erred in upholding the addition made by the Ld. AO u/s 68 since bank statement cannot be construed to be books maintained by the assessee for the purpose of section 68 of the Act. 11.0 That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in treating the appellant company as an accommodation entry recipient by relying on statement recorded at back of the appellant without providing an opportunity by the Ld. AO to cross examine the same. 12.0 That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in upholding the additions made by the Ld. AO u/s 68 on account of cash credit and addition made u/s 69 as unexplained investments which tantamount to double taxation of the same amount in the hands of the appellant. 13.0 Th....
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....and the conclusions of the Lower Authorities, the Ld. Department's Representative sought for dismissal of Ground No.6 of the Assessee. 6. We have heard both the parties and perused the material available on record. The case of the Assessee has been reopened citing the discrepancies between transaction value and the circle rate of property purchased by the Assessee. However, A.O. computed the difference between transaction value and circle rate as taxable under Section 50C of the Act and made addition in the hands of the Assessee who is the purchaser. For the sake of convenience Section 50C of the Act is reproduced as under:- "Special provision for full value of consideration in certain cases. 50C. (1) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed [or assessable] by any authority of a State Government (hereafter in this section referred to as the "stamp valuation authority") for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed [or assessable] shall, for the purposes of secti....
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....owledgment, Bank statement and audited financials of all the parties from whom loans have been taken. The Ld. Assessee's Representative further submitted that the Assessee has duly repaid the loan amount and also proved the genuineness of the transaction by providing cogent evidence to the A.O. Thus, submitted that the Lower Authorities committed error in making and confirming the addition. 11. Per contra, the Ld. Department's Representative submitted that the Assessee has not proved the identity and creditworthiness of the lenders therefore, the addition has been rightly made which has been confirmed by the Ld. CIT(A). Thus, sought for dismissal of the Ground No. 9 of the Assessee. 12. We have heard both the parties and perused the material available on record. It is the specific case of the Assessee that the Assessee has duly repaid the loan amount and provided the details of identity, creditworthiness and genuineness of the transaction before the A.O., however, the same has not been considered while framing the assessment. The Ld. Counsel has provided the chart showing re-payment made to the parties and also produced evidence in support of such re-payment made. The....
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....roviso to section 68 of the Act from AY 2013-14 foisting such obligation and secondly, such proviso is limited in its scope and attributable to receipt of share application money, share capital, share premium etc. and does not extend to loan transactions. The legal propositions are derived from the judgement rendered in the case of Mod. Creations Pvt.Ltd. (supra); CIT vs Shiv Dhooti Pearls & Investments Ltd.(supra) and CIT vs Gagandeep Infrastructure P.Ltd. 80 taxmann.com 272 (Bom.). 9.2. It is trite that additions under s. 68 cannot be made merely on the basis of some perception of culpability towards receipt of loan. The money in the instant case has been received from a company whose financial standing has been demonstrated to be fairly good. The defining feature in the instant case is repayment of such loan in the subsequent years which distinguishes the facts of this case vis-a-vis the facts involved in NRI Steel and other judgements quoted by the Revenue authorities. 9.3. The factum of repayment quells the apprehension entertained by the Revenue. The over-riding factum of repayment of loan itself repels any form of disguise on the part of the assessee and di....