TaxTMI 
TaxTMI 
2025 (2) TMI 1742
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....n the facts and circumstances in the appellant's case and in law, the Id. CIT(A) erred in holding the action of Id.AO in re-opening the assessment u/s 147 by issue of notice u/s 148 dated 27.03.2019 which is barred by limitation in the first proviso to section 147 of the Income tax Act, 1961. 3. On the facts and circumstances in the appellant's case and in law, the Id. CIT(A) erred in holding the action of Id.AO in alleging that assessee has entered into accommodation transactions of unsecured loans without any material evidence on record, for the reasons mentioned in the impugned order or otherwise. 4. On the facts and circumstances in the appellant's case and in law, the Id. CIT(A) erred in holding the action of Id.AO in treating loan borrowing amounting to Rs. 50,00,000/- as unexplained money u/s 69A of the Act, for the reasons mentioned in the impugned order or otherwise. 5. On the facts and circumstances in the appellant's case and in law, the Id. CIT(A) erred in holding the action of Id.AO in disallowing an amount to the extent of Rs. 1,37,500/-, being commission paid on the alleged bogus unsecured loans u/s 69C of the Act, for the r....
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....essee. Further, a summon under section 131 of the Act was issued to the director of the assessee, and in response to the same the statement of Mr. Anil Mutha, the director of the assessee company, was recorded, wherein he confirmed that he did not have any business transaction with Aditi Gems Pvt Ltd or Mr. Shripal Vora nor have any relationship with them in any concern. It was further stated by Mr. Anil Mutha that he doesn't know Mr. Shripal Vora nor have any business transaction in any of its concerned. Mr. Anil Mutha submitted that he had approached a common friend Mr. Shakhar Jethwa, who arranged this loan, but the assessee failed to produce the address and business details of such friend. Mr. Anil Mutha also denied having any transaction with Aditi Gems Private Ltd in any other assessment year. Accordingly, vide order dated 31/10/2019 passed under section 147 read with section 143(3) of the Act, the Assessing Officer ("AO") held that the assessee has failed to produce the director or employee of the lender company, and thus, the identity of the lender is not proved. Further, the AO held that as per the information received from the Investigation Wing, Surat, the premises of al....
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.... in the total income of the assessee. However, again the assessment was concluded by accepting the return of income filed by the assessee vide order passed under section 143(3) read with section 147 of the Act. In the third round of assessment proceedings, which resulted in the present appeal, proceedings under section 147 of the Act were initiated on the basis of the information received from the DCIT, Central Circle-1(2), Ahmedabad, that the assessee is a beneficiary of accommodation entry transaction of unsecured loans from Aditi Gems Private Ltd, which is a company floated by Mr. Shripal Vora, who in turn in his statement recorded under section 132(4) of the Act admitted that he and his entities are engaged in providing accommodation entries. Accordingly, notice under section 148 of the Act was issued to the assessee, and re-assessment proceedings were initiated. Vide order dated 31/10/2019 passed under section 147 read with section 143(3) of the Act, the AO made an addition of INR 50 lakh under section 69A of the Act and an addition of INR 2,75,000 as commission expenditure under section 69C of the Act on the basis that the assessee has availed accommodation entry of unsecured....
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....sed in the assessee's appeal are dismissed. 7. In the present case, it is the plea of the assessee that at the time of taking the loan, Mr. Shripal Vora was not the director of Aditi Gems Private Ltd, on whose statement additions have been made. The assessee submitted that Mr. Shripal Vora was the director of Aditi Gems Private Ltd only at the time of the recording of the statement and therefore Mr. Anil Mutha denied having any dealings with Mr. Shripal Vora. In order to substantiate the identity and creditworthiness of the loan lender and the genuineness of the transaction, the assessee has furnished a copy of the ITR and financials of Aditi Gems Private Ltd for the year under consideration. The assessee has also submitted a copy of the loan confirmation issued by Aditi Gems Private Ltd. Further, bank statements reflecting the transfer of loan through the banking channel and repayment of same through the banking channel have also been furnished by the assessee. The assessee has also filed a copy of Form 16A, reflecting the deduction of TDS on interest paid to Aditi Gems Private Ltd in respect of the loan availed by the assessee. We find that these details were also furnished be....