2026 (5) TMI 1200

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....Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2018-19. 2. The assessee has raised following grounds of appeal :- "1. On the facts and circumstances of the case and in law, the learned CIT(A) / AO has erred in issuing notice under section 148 of the Income-tax Act, 1961 and not giving the prescribed time for submitting the response under section 148A(b) of the Act and that there is no escapement of income. Accordingly, notice issued under section 148 of the Act and proceedings under section 148A of the Act are bad in law 2. On the facts and circumstances of the case and in law, the Learned CIT(A) has erred in confirming the issuance of notice under section 148 of the Act,....

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....on 30.03.2022 along with documentary evidences explaining the source of loan of Rs. 92,00,000/- given to M/s Avadh Buildcon. The Assessing Officer, without considering the reply, passed order u/s 148A(d) on 07.04.2022 stating that no reply was filed and no adjournment was sought, and thereafter issued notice u/s 148. Subsequently, the assessment u/s 147 r.w.s. 143(3) was completed on 14.03.2024 making addition of Rs. 92,00,000/- u/s 69 of the Act. 4. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Ld. CIT(A) who confirmed the addition made by the Assessing Officer, dismissing the appeal ex parte. 5. Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal. ....

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....n, in our considered view, amounts to a gross violation of the principles of natural justice and reflects complete non-application of mind. 6.2 Further, it is observed from the reasons recorded that the reopening has been initiated merely on the basis of information received through the Insight Portal to the effect that the assessee had advanced a loan of Rs. 92,00,000/- which was not commensurate with its returned income and that corresponding credits were found in the bank account prior to advancing such loan. There is nothing on record to indicate that the Assessing Officer carried out any independent enquiry or verification so as to form his own belief regarding escapement of income. The reasons recorded reflect a mechanical reproduc....

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....Y 2019-20 and tax of Rs. 19,32,356/- over the GTI of Rs. 57,11,490/- for AY 2020-21. The assessee is also a tax-paying company for the AY 2022-23 also. Further, we find that Revenue alleged that the assessee is a person of no means to extend loan of Rs. 92 lakhs for M/s. Avadh Buildcon. The assessee has paid taxes of Rs. 6,38,000/- on total income of Rs. 23,78,000/- and the family members namely Sumatiben C. Patel paid taxes of Rs. 1,53,86,431/- over the total income of Rs. 6,06,04,480/-. The total tax paid by the family members was Rs. 1,72,88,700/- over the total income of Rs. 6,90,31,290/-, hence the allegation of the Revenue is found to be unsubstantiated and speculative in nature. It is also noted that the loan has been repaid in subse....