TaxTMI 
TaxTMI 
2026 (4) TMI 408
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....of the order dated 27.03.2024 u/s 143(3)r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the Assessment Unit, Income Tax Department, for AY: 2022-23. 2. Heard and perused the records. The appellant is a Limited Liability Partnership firm carrying on real estate business. During the year under consideration no sales have been executed hence no business income was earned. The appellant filed its ITR for the relevant year on 18.07.2022, declaring a loss of Rs. 1,50,261/-.The ITR filed by the appellant was selected for scrutiny assessment through CASS and notice u/s 143(2) of the Act, was issued on 01.06.2023. The assessment proceedings were completed by making additions of Rs. 15,06,91,119/-, to the in....
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....ovable property was seized by this authorities. As per the said agreement, the total cost of such property was shown at Rs. 21.50 crores and as per the agreement assessee had already paid an amount of Rs. 9,68,32,494/- to ALTPL and MDA before such agreement was made. The balance amount of Rs. 11,81,67,506/- was to be paid to ICICI, VCF and ALTPL and balance was TDS. The payment made to ICICI, VCF is confirmed. The assessing officer concluded that when assessee was not getting any right in the immovable property under this agreement there was no genuineness of transaction. Further, the assessing officer doubted the transaction of loan that the same were given without any collateral security documentation and correspondences. He concluded tha....
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....s to be set-aside being illegal and inconsistent with the facts of the case. (Tax effect - Rs. 35,27,479/-). 3. That the appellant craves leave to add, modify and/or delete any ground of appeal on or before the date of hearing in order to enable your honor to dispose of the appeal as per law." 4. We have given thoughtful consideration to the submissions and gone through the records. Ground No.1; has been raised challenging the action of the Ld. CIT(A) of confirming the impugned addition of Rs. 14,24,00,000/- u/s 68 of the Act, holding that the unsecured loans taken by the appellant from 11 companies were not genuine. In this context we find that assessee had filed detailed submission before the Ld. CIT(A) copy of which is placed....
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....s of all the lenders. The summary of loans given, lender's returned income and their Net worth is as under: - Sr. No. Name Loans Given Returned income Net Worth as on 31.03.2022 1. Bhagwat Traders Pvt. ltd. 2,12,50,000/- 4,19,590/- 31,41,85,382/- 2. Capable suppliers Pvt. Ltd. 1,00,00,000/- 20,900/- 33,99,38,082/- 3. Fabert Agencies Pvt. Ltd. 1,06,25,000/- 44,37,970/- 31,08,81,575/- 4. Gabarial Suppliers Pvt. ltd. 1,11,00,000/- 4,34,410/- 32,52,35,991/0 5. Glix Commercial Pvt. Ltd. 1,27,75,000/- 71,88,000/- 47,89,01,840/- 6. Growth Tradecom Pvt. ltd. 1,90,00,000/- 29,88,450/- 8,74,87,608/- 7. Kanha Enterprises Pvt. Ltd. 33,0....
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....ow have on bald allegations have doubted the transaction and without any factual analysis on broad principles of law laid in various judicial decisions have doubted the transaction. The net worth of parties is good enough a lead to hold that these parties were not some paper companies with no credibility of their own. The lack of income during the year is not conclusive parameter to hold any entity to be meagre pass accommodation entry provider for assessee. Even otherwise the material on record in the form of financials of these lenders made available at pages 129-151 of the PB shows that in case of M/s Fabert Agencies Pvt. Ltd. the said lender has revenue from operations of Rs. 82,07,539 (PB 134) and 'other income' of Rs. 1,37,71,594 duri....
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....oan when the ultimate investment provides no security or rights to the applicant. We are of the considered view that while examining the genuineness of a transaction, the use of the loan amount cannot be of consequence so as to doubt the loan transaction and thereupon it's source too. 9. Therefore we are of the considered view that learned tax authorities have fallen in error to conclude that the unsecured loans represent the appellant's own unaccounted money introduced in the form of loans. Rather it being the first year of operation of the SSE, as SSE has been incorporated on 24th October 2020 and there is no revenue till the closure of the financial year, attributing a client's own unaccounted money is not sustainable in law. ....