AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 1586
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....023.The impugned order is emanated from the orders of the Ld. National Faceless Assessment Centre(NFAC) Delhi (in short, 'the A.O.') passed under section 147 read with section 144B of the Act, dates of order 24/03/2022, 22/03/2022 and 23/03/2022 for A.Ys 2013-14, 2016-17 and 2017-18, respectively. 2. In the outset, all the appeals are having same nature of facts and have common issue, therefore, all the appeals are taken together, heard together and disposed of together. With the consent of both the parties, ITA No.440/Mum/2024 is taken as lead case: - "Following grounds of appeal are without prejudice to each other: 1. The learned CIT(A) has erred in law and on facts in upholding the order passed by the Assessing Offic....
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....CIT(A). The Ld. CIT(A) upheld the assessment order. Being aggrieved, the assessee filed an appeal before us. 4. The Ld.AR vehemently argued and first invited our attention in assessment order para 4 which is reproduced as below:- "4. In the course of reassessment proceedings, it came to light that the assessee has received the cash loan of Rs. 66,00,000/- from M/s. Evergreen Enterprises which was confirmed by Mr. Nilesh Bharani, one of the partners of M/s. Evergreen Enterprises as well as two of the employees of the same firm. However, the assessee has not mentioned the amount of loan received in the return of income filed by the assessee which is in violation to section 269SS of the I T Act. Also, the assessee failed to furnish....
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.... Tax Act, 1961 that they maintain the cash loan ledgers/documents maintained at the premise of M/s. Evergreen Enterprises. Further, Mr. Jagdish T Ramani and Mr. Shankar Jadhav, two other employees of M/s. Evergreen Enterprises have also admitted in their statement on oath recorded u/s, 132(4) of the Income Tax Act, 1961, that ail the cash transactions are handled by them and they are involved in the collection and disbursement of cash loan and interest to both lenders and borrowers. On the basis of documents found and seized at the premise M/s. Evergreen Enterprises during the course of search action u/s, 132 of the Income Tax Act, 1961 and statements recorded on oath u/s. 132(4) of the Income Tax Act, 1961 of Mr. Nilesh Bharni, on....
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....he Act. But in the assessment the cash loan is not accepted by the ld. AO & added back for contravening Section 68 of the Act. There is clear disparity in 'reason to believe' and addition U/s 68 of the Act. The same issue was agitated by the assessee before the ITAT, Mumbai Bench and the observation of the bench is in favour of the assessee. The Ld.AR respectfully relied on the order of ITA No. 3081 /Mum/2022, date of pronouncement 28/02/2024 in assessee's own case for A.Y. 2012-13. The relevant paragraph is reproduced as below:- "10. Thus, respectfully following the judgment of the Hon'ble Bombay High Court, we hold that once the Id. AO has accepted cash loans, which is not been considered as income, there can be escapement of....
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....here has been contravention of the provisions under Section 269SS of the Act and petitioner was liable to penalty under Section 271D of the Act for failure to comply, then respondents could have commenced action or proceedings towards imposition of penalty under Section 271D of the Act. Once respondent proceeds on the basis that petitioner had accepted cash loan of Rs. 16,30,000/- that loan could never be considered as income and therefore there cannot be any escapement of income of the loan amount of Rs. 16,30,000/-. ' 4. In the circumstances, without making any observations as to whether respondents could take any action under Section 271D of the Act or whether respondents are right in the allegations against petitioner of bo....