TaxTMI 
TaxTMI 
2026 (1) TMI 1468
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.... Revenue 4. 4675/Mum/2025 ITBA/APL/S/250/2025-26/107706601 0(1) 16.06.2025 CIT(A) 51, Mumbai 07.03.2022 147 2016-17 Revenue 5. 4687/Mum/2025 ITBA/APL/S/250/2025-26/107722932 7(1) 19.06.2025 CIT(A) 51, Mumbai 08.03.2022 147 2017-18 Revenue 6. 4285/Mum/2025 ITBA/APL/S/250/2025-26/107601799 2(1) 05.05.2025 CIT(A) 51, Mumbai 25.03.2023 147 2017-18 Revenue 7. 4346/Mum/2025 ITBA/APL/S/250/2025-26/107603128 8(1) 05.05.2025 CIT(A) 51, Mumbai 22.04.2021 143(3) 2018-19 Revenue 8. 4568/Mum/2025 ITBA/APL/S/250/2025-26/107628871 4(1) 19.05.2025 CIT(A) 51, Mumbai 22.03.2022 143(3) 2020-21 Revenue 2. Grounds taken by the Revenue are reproduced as under: ITA No 3698/Mum/2025 AY 2012-13: "1. On the facts and circumstance of the case, the Ld. CIT(A) erred in deleting the addition of Rs. 12,00,00,000/- without appreciating the fact that the addition was made based on the credible information received from investigation wing. 2. On the facts and in law, the Ld. CIT(A) erred in holding that the assessee had discharged its burden under section ....
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..../2025 AY 2015-16: 1. "Whether on the facts and circumstance of the case and in law the Ld. CIT(A) erred in directing the AO to delete the addition made u/s 68 of the I T Act, 1961 amounting to Rs. 4,00,50,000/- without properly appreciating the fact of the case and that the addition was made based on the Survey Action carried out u/s 133A in the case of assessee company by the investigation Wing and on the basis of enquires carried in the course of survey proceedings, post survey proceedings and in the course of assessment proceedings." 2. "Whether on the facts and circumstance of the case and in law the Ld. CIT(A) erred the Ld. CIT(A) erred in holding that the assessee had discharged its burden under section 68 despite overwhelming evidence against the genuineness and creditworthiness of the lender entities" 3. "Whether on the facts and circumstance of the case and in law, the Ld. CIT(A) failed to appreciate the findings recorded by the AO, elaborately discussed in the assessment order, which were based on enquiries carried out in the course of assessment proceedings and back by investigation carried out by the Investigation Wing and on the basis of stat....
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....charged its burden under section 68 despite overwhelming evidence against the genuineness and creditworthiness of the lender entities" 3. "Whether on the facts and circumstance of the case and in law the Ld. CIT(A) erred in directing the AO to delete the addition amounting to Rs 79,03,874/-without properly appreciating the fact of the case and that the addition was related to the interest paid on non-genuine transaction in the form of unsecured loan" 4. "Whether on the facts and circumstance of the case and in law, the Ld. CIT(A) failed to appreciate the findings recorded by the AO, elaborately discussed in the assessment order, which were based on enquiries carried out in the course of assessment proceedings and back by investigation carried out by the Investigation Wing and on the basis of statements recorded in the course of S&S Action and Survey action of the principal person of the group, Shri. Pravin Kumar Jain& Jitendra Kumar Jain and other, wherein, they had categorically admitted that they have provided accommodation entries." ITA No. 4285/Mum/2025 AY 2017-18: "1. Whether on the facts and circumstance of the case and in law the Ld. CIT(A) erre....
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....dition made u/s. 68 on account of unsecured loan and disallowance of interest thereon. Since, the issues raised are identical, all these eight appeals are taken up together for adjudication by passing this consolidated order. The issues raised in respect of each of the assesses and the quantum of addition made in all these eight appeals is tabulated below for ready reference: BEFORE THE HON'BLE INCOME TAX APPELLATE TRIBUNAL 'G' BENCH ON 06.11.2025 Name of assessee AY ITAT No. Issues Amount (in Rs. ) Greenscape Developers Private limited 2012-13 3698/MUM/2025 Addition u/s 68 on account of unsecured loan 12,00,00,000 12,00,00,000 2014-15 4593/MUM/2025 Addition u/s 68 on account of unsecured loan 12,81,00,000 Disallowance of Interest 2461059 13,05,61,059 2015-16 4594/MUM/2025 Addition u/s 68 on account of unsecured loan 4,00,50,000 4,00,50,000 2016-17 4675/MUM/2025 Ad....
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....n Kumar Jain and his statement recorded during the course of his search which took place on 01.10.2013. Ld. AO thus, concluded that assessee had obtained accommodation entries in the form of unsecured loans from the group concerns of Shri Pravin Kumar Jain which are bogus concerns. According to him, assessee could not prove the genuineness of transaction. He thus, treated this as bogus unsecured loans and made the addition thereof. Details of addition of Rs. 12 Cr. made by the ld. AO in the reassessment proceedings in respect of unsecured loans taken from entities belonging to the Shri. Pravin Kumar Jain Group is as under: Sr. No. Name of the party Amount (in Rs. ) 1. M/s. Duke Business Pvt Ltd. Rs. 1,25,00,000/- 2. M/s. Josh Trading Pvt Ltd. Rs. 2,50,00,000/- 3. M/s. Atharv Business Pvt Ltd. Rs. 3,50,00,000/- 4. M/s. Sumukh Commercial Pvt Ltd. Rs. 4,75,00,000/- TOTAL Rs. 12,00,00,000/- 3.2. In the first appeal before the ld. CIT(A), assessee made elaborate submissions. It was submitted that assessee is engaged in the business of real estate and shown its income from the said business activity. In respect of addition o....
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....vestor Amount invested in appellant company Share capital and reserve & surplus with investor parties along with borrowings as on 31.03.2012 M/s. Duke Business Pvt Ltd. Rs. 1,25,00,000/- Rs. 9,55,92,363/- M/s. Josh Trading Pvt Ltd. Rs. 1,25,00,000/- Rs. 24,25,21,913/- M/s. Atharv Business Pvt Ltd. Rs. 3,50,00,000/- Rs. 11,55,21,202/- M/s. Sumukh Commercial Pvt Ltd. Rs. 2,50,00,000/- Rs. 14,95,92,164/- 3.5. For the purpose of demonstrating the genuineness of transaction, it was submitted that all these loan transactions including payment of interest and repayment thereof were effected through proper banking channel which is evidently verifiable from the copies of bank statements placed on record. Due TDS was done on interest payments to each of these lender parties. 3.6. Assessee also contended that ld. AO did not undertake any independent enquiry u/s. 133(6) despite having all the material on record. He chose merely to rely on the information received from DIT (I&CI) arising from the search action carried out in the case of Shri Pravin Kumar Jain, who is an unrelated party to the assessee. Assessee also, demonstrated from the document....
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....he Co-ordinate Benches of ITAT, wherein it has been held that the loans given by these entities are genuine. On the contention of the assessee that no opportunity of cross examination was provided to it while placing reliance on the statement of Shri Pravin Kumar Jain recorded during the course of his search, it was observed that principles of natural justice need to be applied by the Income Tax Authorities during the assessment proceedings. Accordingly, material relied upon by the ld. AO to make addition must be brought to the notice of the assessee. However, in the present case no such material or opportunity was made available to the assessee while taking an adverse view. Further, it is noted that no defects have been found in the books of accounts nor any discrepancies or short coming pointed in the detailed submission and corroborative evidence placed on record. Having considered all these aspects, ld. CIT(A) deleted the addition of the remaining Rs. 8.5 Cr. and allowed the appeal by the assessee. 5. Revenue is in appeal before us, contesting on the relief granted by the ld. CIT(A). Keeping in perspective the detailed discussion made in the above paragraphs, we note that ld....
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.... the addition towards unsecured loan, there is a disallowance of interest of Rs. 24,61,059/- on these unsecured loans. Assessee had made similar factual correction in respect of addition made towards unsecured loan u/s. 68 details of which is tabulated below: Sr. No. Name of the party Amount as per AO (In Rs. ) Amount as per Books (in Rs. ) Excess addition 1. M/s. Manhar Impex Pvt Ltd. Rs. 70,00,000/- Rs. 70,00,000/- - 2. M/s. Ganga Gems Pvt Ltd. Rs. 2,60,00,000/- Rs. 2,70,00,000/- - 3. M/s. Rajdhani Diamonds Pvt Ltd. Rs. 3,75,00,000/- Rs. 3,65,00,000/- Rs. 10,00,000/- 4 M/s. Pokharna Impex Pvt Ltd. Rs. 1,75,00,000/- Rs. 1,75.00,000/- - 5. M/s. Kapil Gems Pvt Ltd. Rs. 4.01.00.000/- Rs. 4.01,00.000/- - Total Rs. 12,81,00,000/- Rs. 12,81,00,000/- Rs. 10,00,000/- 7.1. For these lender companies also, assessee established their identity and creditworthiness and proved genuineness of the transaction. Relevant details in this respect are tabulated below for the purpose of identity. Sr. No. Name of Parties PAN CIN 1. M/s. Manhar Impex Pvt Ltd. AAFCM9840G ....
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....r AY 2012-13. Thus, grounds raised by the Revenue both, in respect of deletion of addition made on account of unsecured loans and disallowance of interest expense thereon are dismissed. ITA No. 4594/Mum/2025 AY 2015-16 8. In respect of appeal for A.Y. 2015-16, we captured the factual details in respect of lender parties and the addition made thereon. On account of unsecured loan, identical fact pattern exists in respect of addition made in this year. Accordingly, the observations and findings given above by us, including that of by ld. CIT(A) apply mutatis mutandis and, therefore, the grounds raised by the Revenue in this respect are dismissed. The factual details are produced as under: 8.1. Details of loan taken by the assessee: Sr. No. Name of the party Amount (in Rs. ) 1. Ganga Exim Pvt Ltd 43,00,000 2. Secure Exim Pvt Ltd 1,57,50,000 3. Pamecha Exim Pvt Ltd 70,00,000 4. Rajdhani Diamonds Pvt Ltd 1,10,00,000 5. Pokharna Impex Pvt Ltd 3 20,00,000 TOTAL 4,00,50,000 8.2. For these lender companies also, assessee established their identity and creditworthiness and proved genuineness of the transaction.....
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....0/- 0 Rs. 71,50,000/ Total Rs. 6,36,50,000/- Rs. 5,45,00,000 Rs. 91,50,000/ 9.2. For these lender companies also, assessee established their identity and creditworthiness and proved genuineness of the transaction. Relevant details in this respect are tabulated below for the purpose of identity. Sr. No. Name of Parties PAN CIN 1 M/s. Ganga Gems Pvt Ltd AADCG6620Q U36912GJ2010PTC0593 2 M/s. Secure Exim Pvt Ltd. AAUCS0399F U51909GJ2013PTC0780 3 M/s. Pamecha Exim Pvt Ltd. AAECP6913E U52393GJ2008PTC0539 4 M/s. Aera Exports Pvt Ltd. AANCA4296Q U51103GJ2015PTC083085 5 M/s. Rajdhani Diamonds Pvt Ltd. AAECR6968B U36911GJ2010PTC059975 6 M/s. Pokharna Impex Pvt Ltd AABCP7359P U51900MH1998PTC115082 7 M/s. Gurukul Exim Pvt Ltd AAFCG4510K U36912GJ2013PTC077934 8 M/s. Dolex Commercial Pvt Ltd AAACD5527G U67120MH2003PTC085669 9.3. For the purpose of creditworthiness, the financial position of these lender parties is tabulated below: Name of the investor Amount invested in appellant company Share capital and reserve & surplus with investor parties al....
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....entity. Sr. No. Name of Parties PAN CIN 1 M/s. Manan Trading Co. Pvt Ltd AADCM5896J U51398MH2003PTC141425 2 M/s. Manhar Impex Pvt Ltd. AAFCM9840G U51109MH2009PTC191664 3 M/s. Secure Exim Pvt Ltd AAUCS0399F U51909GJ2013PTC078022 4 M/s Aera Exports Pvt Ltd LAANCA4296Q U51103GJ2015PTC083085 5 M/s Adroit Exports Pvt Ltd AAOCA4156C U51909GJ2016PTC092165 6 M/s Myron Trade Pvt Ltd AAJCM9663K U51900GJ2015PTC084659 7 M/s Galary Trading Pvt Ltd. (now known as M/s. Jituraj Finserve Pvt. Ltd). AADCG3635R U51109MH2009PTC189985 8 M/s Rightangle Diamond Pvt Ltd AAGCR5154B U36912G J2013PTC076129 9 M/s Gurukul Exim Pvt Ltd AAFCG4510K U36912GJ2013PTC077934 10 M/s. Anshul Gems Pvt Ltd. AAHCA6495P U51398MH2009PTC191663 11 M/s Dolex Commercial Pvt Ltd AAACD5527G U67120MH2003PTC085669 12 M/s Kapıl Gems Pvt Ltd AAECK1120C U36912GJ2010PTC062596 13 M/s Shyam Alcohol & Chemicals Ltd AAGCS6595M U24100MH2005PLC154096 10.3. For the purpose of creditworthiness, the financial position of these lender parties is tabulated below: Name of ....
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....Name of the investor Amount invested in appellant company Share capital and reserve & surplus with investor parties along with borrowings as on 31.03.2017 M/s Adroit Exports Pvt Ltd Rs. 5,45,00,000/- 18.18.Crs 11.1. For this lender company also, assessee established its identity and creditworthiness and proved genuineness of the transaction. Relevant details in this respect are tabulated below for the purpose of identity. Sr. No. Name of Party PAN CIN 1. M/s. Adroit Exports Pvt Ltd. AAOCA4156C U51909GJ2016PTC092165 11.2. Identical fact pattern exists in respect of the addition made. Accordingly, observations and findings given by us, including that by ld. CIT(A) applies mutatis mutandis. Thus, grounds raised by the Revenue in this respect are dismissed. ITA No. 4346/Mum/2025 Ay 2018-19 12. In respect of appeal for A.Y. 2018-19, details of the lender companies are tabulated below: Sr. No. Name of the party Amount (in Rs. ) 1. M/s. Adroit Export Pvt Ltd 2,00,000/- 2. I M/s. Gurukul Exim Pvt Ltd 2,00,000/- 3. M/s. Aadinath Merchandise Pvt Ltd 50,00,000/- - 4. M/s. Aarohi Cr....