TaxTMI 
TaxTMI 
2025 (5) TMI 2274
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....(3) was completed on 15-11-2016 determining the income at Rs. 87,75,910/- by making two additions. Subsequently, the assessment was reopened by issuing notice dated 30-03-2021, under section 148 of the Act, that the assessee is one of the beneficiaries who has obtained Rs. 1,13,27,000/- in the form of fictitious loan taken from M/s. Dishman Pharmaceuticals and Chemicals Ltd. (for short 'DPCL'). 2.1. In response, the assessee filed a return on 30-04-2021 declaring total income of Rs. 87,51,570/-. During the reassessment proceedings, a show cause notice was issued as to why not to add the unsecured loan of Rs. 1,13,27,000/- received from DPCL to be treated as bogus. In response, the assessee submitted a detailed reply as follows: "(a) It is submitted that Dishman Pharma & Chemicals Ltd, a listed company and as per the audited accounts, the company had incurred Expenses towards Employee benefits of Rs. 5,837.83 Lakhs, and earned Profit After Tax of Rs. 8,678.67 Lakhs, for ready reference we are enclosing herewith (i) Copy of Audited Balance Sheet. (ii) Copy of Audited Profit & Loss A/c. (iii) Annexure 12A & 12B of Audited Accounts of fixed asset ....
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....e course of scrutiny assessment assessee has already filed the details of transactions with Dishman Pharma & Chemicals Ltd. & after due verification Ld. AO has accepted the same. In the above facts and circumstances we request your good self to kindly accept the same and oblige. It is further respectfully submitted that if your good self is not agree with the transactions with Dishman Pharma & Chemicals Ltd, we request your good self to kindly provide us the statements / the records, material, information etc. relied upon by your good self and also request for the cross examination of the persons of Dishman Pharma & Chemicals Ltd, who had said that this transactions are not genuine. For your ready reference we are enclosing herewith relevant pages from Audited accounts of Dishman Pharma & Chemicals Ltd for the year ended 31/03/2014, relevant to A.Y. 2014-15. in the above facts and circumstances as the loading super vision charges paid of Rs. 1,24,16,000/- to Dishman Pharma & Chemicals Ltd, are genuine we request your good self to kindly accept the same as accepted by Ld. AO in original scrutiny assessment and oblige." 3. After verifying the above submi....
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....ents of Rs.1,24,16.000 to Dishman on account of loading supervision services taken from Dishman. Please refer to letter dated 28.03.2022 at Pg. No. 33 to 98 of Paper book of Documents. 2.6 The AO, thereafter, framed assessment under section 147 r.ws. 144B of the Act vide order dated 29.03.2022. Since the Assessing Officer was satisfied with the assessee's submission regarding no loan transaction with Dishman, no addition was made in respect of the same Please refer to Assessment Order dated 29.03.2022 at Pg. No. 99 to 100 of Paper book of Documents. 2.7 Thereafter. Your Honors has issued the captioned notice dated 03.01 2024 under section 263 of the Act seeking to revise the Assessment Order dated 29.03.2022 in respect of the following item: "No addition was made u/s. 68/69A of the Act on account of fictitious loan of Rs.1,13,27,000/- received by the assessee from Dishman Pharmaceuticals and Chemicals." Please refer to Notice u/s. 263 of the Act dated 03.01.2024 at Pg. No. 101 to 103 of Paper book of Documents. It is case of Your Honors that the assessee is a beneficiary of fictitious loan from Dishman to the tune of Rs. 1,13,27,000/- as per ....
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....narrated above, I hold that the Faceless Assessing Officer has erred in not considering the issue of transaction with Dishman Group with respect to loading and supervision charges of Rs. 1,24,16,000/-. The assessment order is passed by the A.O., without making proper examination of the issues mentioned above. The Assessing Officer has failed to make addition in accordance with the provisions of the Act. The error in the assessment order has resulted into loss of revenue. The order passed by the Assessing Officer is, thus, erroneous and prejudicial to the interest of the Revenue. Therefore, provisions of section 263 of the Act are applicable in this case." 5. Aggrieved against the Revision order, the assessee is in appeal before us raising the following Grounds of Appeal: 1. On the facts & in the circumstances of the case, it is most respectfully submitted that the Ld. Principal Commissioner of Income Tax-1 has erred in Law and on Facts in holding that the order passed u/s. 147 of the Income Tax Act 1961 dated 29/03/2022 as erroneous and prejudicial to the interest of revenue and directing the Ld. Assessing Officer to make fresh assessment, by passing the Order u/s. 263 ....
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.... this case, an information was received from credible source which shows that search in the case of Dishman group of Ahmedabad was conducted on 19.12.2019 and the group was found to be indulged in huge transactions of bogus loans and advances. Accordingly the reasons has been record and stated that the assessee is one of the beneficiaries who has obtained Rs. 1,13,27,000/- in the form of fictitious loan from Dishman Pharmaceuticals And Chemicals Ltd. 2. During the course of assessment proceedings, details have been called for from the assessee. As the submission of the assessee was not visibile, a draft assessment order has been sent based on the details available on record and the reasons recorded. In response to this the assessee has made submission on 28-03-2022. On verification of records, it is noticed that the assessee has claimed loading & supervisions charges of Rs. 1,24,16,000/- stated to be paid to Dishman Carbogen Amis Ltd. (Formerly known as Dishman Pharmaceuticals and Chemicals Ltd. 3. Hence this office is not in a position to conclude. In view of the same, return income is being accepted. It is seen that no inference can be drawn without having physi....