TaxTMI 
TaxTMI 
2026 (4) TMI 1468
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....re against the common order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for AY 2022-23 dated 04.08.2025. Since the issues in both the appeals are related, they were heard together and are being decided vide this common order for the sake of convenience and brevity 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: "1. That the Ld. Commissioner of Income-tax (Appeals), NFAC was wrong in not deleting the disallowance of Prior Period Expenses aggregating to Rs. 6,44,442. 2. That without prejudice to the contentions raised in Ground No. (1) abo....
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....n exceeding his jurisdiction as he is not entitled to set aside any Assessment Order passed u/s 143(3) by A.O. w.e.f. 01.10.2024. 3. That the appellant craves leave to add and/or alter, amend, modify or rescind the grounds hereinabove before or at the time of hearing of this appeal." 3. We shall first take up the assessee's appeal in ITA No. 2423/KOL/2025 for adjudication. Brief facts of the case are that the assessee had filed its return of income for AY 2022-23 showing total income of Rs. 3,70,090/-. The case was selected for scrutiny under Computer Assisted Scrutiny Selection (in short 'CASS') for the reasons of high liabilities in balance sheet as compared to low income/receipt declared in the ITR, the difference bet....
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....-) were considered unexplained liabilities and were added to the total income of the assessee u/s 68 r.w.s 115BBE of the Act. The Ld. AO also disallowed a sum of Rs. 1,02,184/- on account of club expenses and also disallowed the claim of prior period expenses to the tune of Rs. 6,44,442/-. Further, the Ld. AO added a sum of Rs. 6,61,534/- to the total income of the assessee on account of interest paid on unsecured loans. The Ld. AO noted that the assessee had utilized the surplus fund by extending an interest free loans to related parties for non-business purposes. The Ld. AO assessed the total income of the assessee at Rs. 7,15,28,250/- u/s 143(3) r.w.s. 144B of the Act. Aggrieved with the assessment order, the assessee filed an appeal bef....
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....he bills. It is seen that Bill no 103/2021-22 dated 10.01.2022 pertains for audit for the period Jan 2020 to Dec 2020 for Rs. 1,77,000/-. Bill No 105/2021-22 dated 10.01.2022 pertains for audit for the period Jan 2021 to August 2021 for Rs. 100,890/- It is seen that Bill no 103/2021-22 does not pertain to the P.Y. relevant to A.Y. 2022-23. Further it is not a case of the appellant that the auditor carried out audit for the period Jan 2020 to Dec 2020 during F.Y. 21-22. When the audit was done in earlier F.Y., the expenses should have been booked in the corresponding A.Y. Therefore, the same could not allowed as deduction. As regards Bill No 105/2021-22, the part amount of the bill pertains to A.Y. 2022-23 i.e. out....
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....iving his findings as under: It is seen from the submission of the appellant, the appellant failed to explain how the borrowing were utilized for the purposes of business. The onus was on the appellant to explain the utilization of funds. The appellant was required to submitted date wise funds borrowed and its utilization. In the absence of any nexus, the disallowance made by the A.O. is hereby confirmed. This ground of appeal is dismissed. 7.1 The Ld. AR submitted before us that the loans were given to the related parties out of own funds in the earlier year though an amount of Rs. 5.68 Crore was given and this year the amount is increased to Rs. 9.33 Crore and there is an increase of approximately Rs. 3.65 Crore. the ....
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.... is partly allowed for statistical purposes. 11. As regards the cross objections raised by the Revenue, the same relates to addition of Rs. 6,97,50,000/- on account of unexplained cash credits for loans received from the related concerns. Before the Ld. CIT(A), the assessee furnished some documents and who noted the submission of the assessee and has noted that the amount was received in relation to the assignment of the lease and the amounts received were shown as advance. The assessee submitted annual accounts in support of its contention before the Ld. CIT(A) and also submitted bank statements of the above 2 parties from whom the loans were received. Since the documents were not filed before the AO, the assessee was directed by the Ld....