TaxTMI 
TaxTMI 
2026 (7) TMI 1329
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....Aditya Bhatt for the respondent-Department. 2. This appeal is filed under Section 260A of the Income Tax Act, 1961 (for short, "the Act"), arising out of the Judgment and Order dated 16.01.2025 passed by the Income Tax Appellate Tribunal, "A" Bench, Ahmedabad, in ITA No. 365/AHD/24 for the Assessment Year 2017-18. 3. The brief facts of the case are that the assessee filed its return of income for the Assessment Year 2017-18 on 23.09.2019 declaring a total income of Rs. Nil. The case of the assessee was selected for scrutiny. The Assessing Officer passed an assessment order under Section 143(3) of the Act by making an additions of Rs. 38 Lakhs towards the disallowance of non-business expenditure and Rs. 1,77,24,909/- towards an unexpla....
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.... aggrieved, the assessee preferred an appeal before the Tribunal along with the paper-books containing relevant documents to show not only the identity of the lenders but also the source of the source and pointed out before the Tribunal in the written submission that the assessee had explained in detail before the Assessing Officer that the persons who have advanced loans to the assessee had already advanced loans to the sister concern of the assessee, M/s. Samkeet Builders, and upon repayment of the loan by the said entity, the money has been invested with the assessee. 3.4 With regard to the disallowance of the non-business expenditure, the Tribunal accepted the explanation given by the assessee in view of the Tribunal's decision i....
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.... they are individuals with limited financial means, making it questionable that they could have lent the amounts reflected in the assessee's books. The A.O. and Ld. CIT (Appeals) did not issue a blanket judgment but instead provided detailed findings on the financial status of each of the creditors. Additionally, the common trend amongst the lenders was that the bank statements of all creditors displayed a similar pattern: the credit balances were modest, a credit entry appeared, followed by the withdrawal of a cheque for nearly the same amount made out to the assessee, after which the bank balances reverted to their previous minimal levels. This recurring sequence in all creditors cases raises serious doubts about the authenticity of t....
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....the assessee for the impugned assessment year, out of which an addition of Rs. 1.77 crores was made by the Assessing Officer with respect to seven lenders wherein after issuance of summons, and taking the evidence placed by the assessee on record, the Ld. AO was of the considered view that neither the creditworthiness of these parties was established nor their genuineness was beyond doubt. While passing the order the Tribunal had taken into consideration, all the evidences filed by the assessee and was of the considered view that with respect to these seven parties, the assessee could not establish their genuineness or creditworthiness. It was specifically noted that common trend among the seven lenders were that they were either f....
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....the Tribunal failed to consider the Paper-Book No. II, in which, the assessee had placed on record the documents which clearly show that the seven parties, who had advanced loans to the assessee, had received money from their earlier investments or through their parents or relatives. Therefore, the Tribunal has, without considering such evidence and documents on record, dismissed the appeal of the assessee on the ground of the addition made under Section 68 of the Act by reproducing what the Assessing Officer had recorded in the assessment order. 3.8 It was, therefore, submitted that the Tribunal had not considered the documents and the evidence which were placed on record and had considered the irrelevant factors which had been weighed ....