2026 (2) TMI 705

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.... dated 29.03.2022 u/s 147r.w.s 144 read with section 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by NFAC, Delhi for AY: 2014-15. 2. The assessee is a private limited company and the case of the assessee was reopened on the basis that assessee had not disclosed interest income and contractual receipts and allegedly investment in mutual funds were also not disclosed. 3. During the course of assessment proceedings, on perusal of the ITR submitted by the assessee, the AO found that the assessee derived Interest Income of Rs. 11,601/- and TDS of Rs. 1,161/- was deducted u/s 194A of the Act by Punjab National Bank. Further, it was also noted that the assessee has received aggregate Contractual Receipts of ....

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....per the assessee, the entire advance has been repaid within the same FY and hence it is not reflecting in the balance sheet of Prem Power Construction. The Bank account copies, Mutual Fund investment, Dividend earned etc were submitted. These material evidences were produced before the AO and also during the course of appeal. Hence it cannot be considered as unexplained investment The AO is directed to delete the addition of unexplained investment as the assessee sufficiently explained the transaction and sources of fund during the course of assessment proceedings as well as appeal proceedings." 4. Being aggrieved with the order of ld. CIT(A) the revenue is in appeal before us and has raised following grounds: "1. Whether on the....

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.... observed that Ld. CIT(A) observed in para 5 that during the course of appellate proceeding assessee was asked to submit copies of notices issued by the AO, replies filed by the assessee, copies of tax returns of Prem Power Construction, copies of bank account of Prem Power and that of the assessee and audited profit and loss account and balance sheet of the companies which were submitted on 18.01.2023 and have been reproduced in the impugned order. Thus, it is not the case of the assessee taking recourse of provision of Rule 46A by filing additional evidence but the ld. First Appellate Authority has exercised its discretion to call for material substantiating the grounds. 7. Then, the bank statement of the assessee has been relied by ld....