2026 (1) TMI 875

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....thority or 'the ld. FAA' for short) in appeals filed before him against the orders of the ld. Assessing Officer (hereinafter referred to as the Ld. AO, for short) passed u/s 153A r.w.s u/s 143(3) of the Income-tax Act, 1961 (hereafter referred to as 'the Act'). Further details of the orders of the lower authorities are as under:- ITA No. & AY Ld. FAA who passed the appellate order Appeal No. & Date of order of the Ld. FAA AO who passed the assessment order & Date of order 1527/D/23 2015-16 CIT(A)-4, Kanpur CIT(A)-IV/KNP/10156/2014-15, 28.03.2023 DCIT, CC-1, Noida, dated 30.09.2021 1528/Del/2023 2017-18 CIT(A)-4, Kanpur CIT(A)-IV/KNP/11917/2016-17, 28.03.2023 ACIT/DCIT, CC, Noida dated 30.09.2021 1529/D....

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....on of Rs. 12,24,05,000/- u/s 68 of the Act on account of unsecured loans taken from Ten companies and Rs. 1,43,33,350/- u/s 68 of the Act on account of share application money received from 14 parties. (iii) In AY: 2017-18 addition was made of Rs. 1,00,00,000/- on account of loan received from M/s SW Consultants Pvt. Ltd. alleging that it is an accommodation entry provider company u/s 68 of the Act and 4% of the commission of the same was added at Rs. 4,00,000/- u/s 69C and Rs. 3,03,781/- interest debited on that account for AY: 2017-18 was found to be not genuine and disallowed. Further a disallowance u/s 14A of Rs. 56,515/- was made. (iv) In AY: 2018-19 the disallowance of Rs. 30,53,044/-was made on account of interest p....

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....at not a single incriminating material is referred in the assessment. The decision of Hon'ble Supreme Court in the case of PCIT Vs. Abhishar Buildwell, 454 ITR 212 (SC) was relied to contend that the findings of Ld. CIT(A) relying the decision in various case laws to hold that provision of Section 153A of the Act laid down no restriction that the additions/disallowance can be made only on those issues which emanate from the seized materials or documents is not sustainable. As for abated AY involved it was contended additions are consequential to earlier years. 3.1 The ld. DR however relied upon the assessment orders and contended that suspicious circumstances are as good as incriminating material. 4. We have carefully gone through the....

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....lenders were not filed to prove the creditworthiness of the lenders. Certainly the addition is dehors of any incriminating material or information. 6. Similarly in AY 2017-18 the additions are on account of unsecured loans taking from 3 parties. The ld. AO had relied the assessment of M/s SW Consultants Pvt. Ltd. to draw inferences holding that it is an entry providing company. However, the discussion of the AO has been not to examine the issue of unsecured loan but the issue has been examined in context to penny stock transactions though the allegation was that assessee has taken loan from companies operated by Raj Kumar Modi and Raj Kumar Modi is key person of M/s PMC Fincorp Ltd. which is engaged in accommodation entry providing in th....