2026 (3) TMI 1108

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.... addition of Rs. 6,00,00,000/- made under section u/s 68 of the Income Tax Act, 1961 (in short the 'Act'). There is a secondary issue of disallowance of interest paid of Rs. 17,37,000/- on loans availed. 3. Briefly the facts are, the assessee is a resident corporate entity and is stated to be engaged in the business of real estate development including slum development project. For the assessment year under dispute, the assessee had filed its return of income on 29.9.2012, declaring income of Rs. 15,33,58,735/-. Subsequently, assessee filed revised return of income on 19.08.2013, declaring income of Rs. 15,25,20,750/-. In course of assessment proceeding, while verifying the return of income and financial statements of the assessee, the A....

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....ions. 5. We have considered rival submissions and perused the materials on record. Undisputedly, the AO has treated the loans as unexplained cash credit primarily relying upon the investigation carried out in the case of Shri Jain. However, in case of proceedings before learned First Appellate Authority, the assessee had furnished additional documentary evidences to prove the loan transactions. Such documentary evidences were forwarded to the AO for verification and enquiry. After verifying those evidences, the AO had furnished his report dated 25.04.2025 to the First Appellate Authority which reads as under: "6. Further remand report was called from the AO in respect of additional evidence submitted by the assessee. The AO subm....

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.... assessee in the same assessment year. Also, it is stated by the assessee, M/s Deserve Exim Pvt. Ltd., that the unsecured loan of Rs. 2,00,00,000/- received during A.Y. 201213 from M/s Viraj Mercantile Pvt. Ltd. has been returned by the assessee in A.Y. 2014-15. 4. In light of the above submissions of the assessee and the replies to the notices sent to the third parties, decision may be taken by the Ld. CIT(A). 5. Submitted, please." 6. The remand report of the Assessing Officer clearly demonstrates that in course of remand proceeding both the lenders responded to the notices issued u/s. 133(6) of the Act and furnished the requisite documentary evidences before the AO confirming the loan transactions with the assessee. ....