TaxTMI 
TaxTMI 
2026 (7) TMI 791
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.... "1. On the facts and circumstances of the case and in law, the learned Addl./JCIT (A)-1, Chennai (hereafter "the Ld. Addl./JCIT (A)") erred in not appreciating that the Assessing Officer has issued Notice under Section 148 of Income Tax Act, 1961 mechanically and without application of mind and on borrowed satisfaction and hence the Notice issued under Section 148 of Income Tax Act, 1961 is bad in law. 2. On the facts and circumstances of the case and in law, Ld. Addl./JCIT (A) erred in not appreciating that approval to the issue of Notice under Section 148 of Income Tax Act, 1961has been granted by the Pr.CIT-26. Mumbai under Section 151 of Income Tax Act, 1961 in a mechanical manner and moreover no such approval has been prov....
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.... year under consideration on 18.12.2012 declaring a total income of Rs.6,00,570/-. Subsequently, information was received by the Assessing Officer from the Deputy Director of Income Tax (Investigation), Mumbai, alleging that the assessee had obtained a cash loan of Rs.10,00,000/- through Shri Nilesh Bharani/M/s Evergreen Enterprises during the Financial Year 2011-12 relevant to the assessment year under consideration. 3. On the basis of the aforesaid information, the Assessing Officer recorded reasons to believe that income chargeable to tax had escaped assessment within the meaning of Section 147 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") and accordingly issued notice under Section 148 of the Act. 4. During th....
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....ani recorded u/s 132(4) of the Income Tax Act, 1961 unearthed an undisclosed activity of money lending and borrowing in unaccounted cash being operated at the premise M/s. Evergreen 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 Mr. Nilesh Bharani, one of the partner of M/s Evergreen Enterprises and Mr. Jagdish T Ramani, Ashwin Rathod, Vibha Sachin Rawate & Shankar Jadhav (Employees of Evergreen Enterprises), several individuals and business concerns, who have lent cash loans through M/s Evergreen Enterprises are identified. Further, through 360-degree pro....
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....gs under Section 271D. In fact, the Assessing Officer himself has acknowledged the alleged violation of Section 269SS and has accordingly initiated penalty proceedings under Section 271D. Having treated the transaction as a loan for the purpose of invoking penal consequences under Section 271D, the Revenue cannot, in the same breath, seek to assess the very same amount as taxable income of the assessee. Such a course is legally impermissible and runs contrary to the scheme of the Act. 6.2 In our considered opinion, once the receipt is accepted as a loan transaction, no addition thereto can be sustained merely on account of the mode in which the loan was accepted. The remedy available to the Revenue in such circumstances lies in the penal....