2026 (4) TMI 1304

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....he proceeding u/s 147 r.w.s. 144B of the Income Tax Act. 2. As the issues involved were common, both the matters were heard together and are being disposed of vide this common order for sake of convenience. We will take the appeal in ITA No. 1596/Ahd/2025 for A.Y. 2016-17 as the lead case. ITA No. 1596/Ahd/2025 3. The brief facts of the case are that the assessee had filed his return of income for A.Y. 2016-17 on 10.07.2016 declaring total income of Rs. 10,18,840/-. The AO had received an information from Investigation Wing that the assessee had taken unsecured loan of Rs. 70,00,000/- from one Neeta Rajendra Sheth, out of which Rs. 19,00,000/- pertained to this year and the balance amount of Rs. 51,00,000/- was received in the next....

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...., hence, it has resulted in double taxation of same amount. 5. The appellant craves leave to add, alter, amend any ground of appeal. 6. Shri M. K. Patel, the Ld. AR of the assessee submitted that the loan transaction was duly confirmed by the creditor in the course of assessment proceeding. He explained that the AO had issued notice u/s. 133(6) of the Act to Neeta Rajendra Sheth, in response to which she had confirmed the loan transaction and her reply was also reproduced in the assessment order. As explained by her, she had booked three shops with Aarya Infra, a group entity in which the assessee was a partner. Accordingly, the total amount of Rs. 70,00,000/- was given to the assessee spread over two years for booking of these ....

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....ssessee has also brought on record the evidence to effect that the sum of Rs. 19,00,000/- received during the year was subsequently transferred to Aarya Infra. A copy of the sale deed executed between Aarya Infra and Neeta Rajendra Sheth has also been brought on record which establishes that Ms. Neeta Rajendra Sheth did purchase the properties, as stated in her confirmation filed before the AO. Under the circumstances, there was no merit in the addition of Rs. 19,00,000/- made by the AO on account of unexplained loan transaction and accordingly the addition is deleted. 9. The grounds taken by the assessee are allowed. ITA No. 1597/Ahd/2025 10. The following grounds have been taken in this appeal: 1. That on facts, and in l....