2025 (2) TMI 1844

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.... also has receipts from clearing, forwarding etc. He filed return of income on 29.11.2014 declaring income of Rs. 1,35,51,442/- and also filed revised return income by adding a sum of Rs. 1,02,98,288/- on 26.09.2016 and thus, the total income determined by the assessee was at Rs. 2,38,49,730/- [Rs. 1,35,51,442/- + Rs. 1,02,98,288]. The case of the assessee has been selected for scrutiny. The Assessing Officer issued statutory notice u/sec.143(2) as well as show cause notice calling for explanation of assessee. The assessee filed his reply to the said notices. The Assessing Officer after examining the explanation offered by the assessee, determined the total income of the assessee at Rs. 5,02,70,140/- as against the returned income of Rs. 2,....

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....come Tax Act, 1961. 4.2. With respect of addition of Rs. 1 crore made u/sec.68 of the Act, the learned CIT(A) after considering written submissions of the assessee, noted that the assessee explained the cash credit and confirmation of advance along with acknowledgment of income tax return of the claimed lender Shri Nitin Ahuja, furnished bank statement of Shri Nitin Ahuja indicating advance given to assessee and the income tax returns of Shri Nitin Ahuja reflecting his income for the A.Y. 2013-14 at Rs. 50,26,460/- and for the A.Y. 2014-2015 is at Rs. 63,89,987/-. Since the learned CIT(A) has satisfied with the three ingredients of sec.68 of the Act i.e., identity, genuineness and creditworthiness of transaction, he deleted the addition ....

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....giving standard deduction @ 30%. Similarly, neither the assessee nor the lender has furnished their confirmation, bank statement, balance-sheet of Rs. 1 crore appear in assessee's books of account, the Assessing Officer rightly made the addition u/sec.68 of the Act. Accordingly, the Learned DR submitted that the order of the Assessing Officer be confirmed. 7. We have heard the arguments advanced by both the parties and perused the orders of the authorities below. We find force in the arguments advanced by the assessee on all the three grounds raised by the Revenue. We find that the impugned deemed dividend addition made by the Assessing Officer u/sec.2(22)(e) of the Act cannot be sustained in the eye of law since the assessee has already....