AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (2) TMI 1764
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.... delay of 111 days in filing the present appeal. The revenue filed application for condonation of delay stating reasons for such delay. After considering the application, we find reasonable cause and condone the delay in filing the appeal and adjudicate the appeal on merits of the case. 3. Brief facts of the case are that the assessee filed his return of income for the assessment year 2020-21 by declaring total income of Rs. 23,48,56,350/-. The case of the assessee was selected for scrutiny under CASS with specific reasons being substantial unexplained loans received during the year. Accordingly, notice u/s 142(1) of the Act was issued during the assessment proceedings. The Assessing Officer raised several issued and made specific enquir....
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....ssessee which included audited financial statement of M/s Bonn Suppliers Pvt. Ltd. for the relevant assessment year, ITR acknowledgement of the creditors, loan confirmation, bank statement reflecting the loan transaction, memorandum of association and articles of association of the creditors, proof of repayment of loan along with interest payment after deduction of TDS, details of net worth of the creditor which included free reserves aggregating to Rs. 13,33,98,038/-, substantial investment in mutual funds, longterm/ short-term loan or advances of the creditor given to other parties. While passing the order, the ld. CIT(A) observed that the addition made by the Assessing Officer on the basis of conjecture, surmises and suspicions and witho....
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....y registered in RBI and regularly assessed to tax and the financial statement demonstrates that the creditor had substantial fund to advance the loan. Moreover, the loan was advanced through banking channel and the loan was repaid in subsequent years along with interest after deducting TDS. The ld. AR stated that while framing the assessment order, the Assessing Officer failed to make any enquiry with the Assessing Officer of the creditor in order to verify the transaction. The ld. relied on various judicial precedents including the judgment of the Hon'ble Jurisdictional High Court in the case of CIT vs. Dataware Pvt. Ltd. in ITAT No.263 of 2011 GA No.2856 of 2011, wherein, it was held that once the assessee furnished to discharge its onus ....
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....t conducting any intendent and proper enquiry. Therefore, it cannot be said that the creditor was a shell company without proper enquiry on the part of the Assessing Officer. On perusal of records, we notice that the loan was repaid in the subsequent years and the repayment was duly reflected in the bank statements and ledger accounts of both the parties. Therefore, it cannot be doubted that the creditor was a non-existent company. To buttress our above discussions, we place reliance on the following decisions: (i) Hon'ble jurisdictional High Court, Calcutta in the case of S.K. Bothra & Sons, HUF v. Income-tax Officer, Ward- 46(3), Kolkata 347 ITR 347 (Cal), wherein, it was held as follows: "15. It is now a settled law....
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....After getting the PAN number and getting the information that the creditor is assessed under the Act, the Assessing officer should enquire from the Assessing Officer of the creditor as to the genuineness" of the transaction and whether such transaction has been accepted by the Assessing officer of the creditor but instead of adopting such course, the Assessing officer himself could not enter into the return of the creditor and brand the same as unworthy of credence. So long it is not established that the return submitted by the creditor has been rejected by its Assessing Officer, the Assessing officer of the assessee is bound to accept the same as genuine when the identity of the creditor and the genuineness of transaction through ....