TaxTMI 
TaxTMI 
2025 (4) TMI 1860
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....ng the alternate claim of the appellant in adjusting the alleged accommodation entries of interest of Rs. 6,75,000/- out of unclaimed interest of Rs. 5,94,369/- in the ITR of the appellant." 2.1 Apropos grounds of appeal of the assessee, it is noticed that the ld. CIT(A) has dismissed the appeal of the assessee by observing at para 4 to 4.11 and 5 of his order as under:- "4. Decision: 4.1 The above appeal was instituted on 09.06.2016 against the order u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the "Act") dated 08.03.2016 passed by Income Tax Officer, Ward-1(4), Jaipur for the A.Y. 2013-14. There is a delay in filing of the appeal by the appellant. The same is admitted and delay is condoned. The appellant has filed ROI for A.Y. 2013-14 on 27.10.2013 admitting total income of Rs 15,170/-, The same was processed u/s 143(1) of the Act by AO. Subsequently the case was selected for scrutiny through CASS and AO passed the order u/s 143(3) of the Act on 08.03.2016 assessing total income of Rs. 6,90,170/- by making an addition of Rs. 6,75,000/- on account of disallowance of interest paid on bogus unsecured loans. Aggrieved by the order, the appe....
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....presented to him by the assessee. The very existence of such parties was questioned thereby the identity and credit worthiness of the lender were not proved. 4.5 Accordingly, during the assessment proceedings the AO held that the assessee failed to discharge the onus put upon her to produce the person for examination or prove the genuineness of unsecured loan through concrete evidence and hence the interest claimed on these loans amounting to Rs. 6,75,000/- (2,25,000/-*3) was disallowed. 4.6 The appellant considered this action of AO as arbitrary, as the same information was not shared to her for rebuttal. During the appellate proceedings, the appellant in her response dated 01.08.2022 and 11.10.2024, submitted that the Id. AO did not share the relevant information which he had received from Mumbai so that the appellant could not submit his response thereon. The relevant paras of her submission are reproduced as under:- The details of the submissions are available at page 4 to 7 of ld. CIT(A)'s order..........................................'' 4.7 The facts of the case, the observations of the AO and averments of the appellant have been considere....
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.... are rejected. 4.10 Ground 3 is related to AO not setting off of the unclaimed interest of Rs. 5,94,369/- against the disallowance of Rs. 6,75,000/-. The appellant in her written submission stated that, "the appellant had paid total interest of Rs. 45,96,353 during this relevant year and had claimed deduction of following amounts only (amounting to Rs. 40,01,984) in following way- Out of Income from Business and Profession 16,90.226/- (Against interest recd. from Mis. Arun Udyog as partner) Out of Income from other sources 23,11,758 Thus the appellant suo motto did not claim interest of Rs. 5,94,369. The Id. AO should have allowed set off the unclaimed interest against the above said disallowance of Rs. 6,75.000 and should have only disallowed balance amount of Rs. 70,631. By disallowing the whole amount of Rs 6,75,000 the appellant has become interest burden of Rs. 12.69,369 which is without any basis and is unjustified". 4.11 This issue is found to have been dealt by AO. It is not known as to why the interest was not claimed by the appellant, if it was a genuine transaction. It is also not known whether the said unclaimed interest come....
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..../2016-17 (for AY 2009-10) and CIT(A), Jaipur 1/11091/2016-17 (for AY 2010-11) and in both the appeals the appellant has already filed all submissions. The main challenge of the assessee in both the appeals are that these loans had been received in regular course and the same were not accommodation entries. 1st Appeal In first appeal the Id. CIT(A) sustained the order of the Id. AO. Present appeal: Your honour, I would request your good self to kindly allow me to take ground no. 2 prior to ground no.1 and oblige. Ground No. 2: That without prejudice to ground no. 1 the Id. CIT(A) has further erred in not allowing the alternate claim of the appellant in adjusting the alleged accommodation entries of interest of Rs. 6,75,000/- out of unclaimed interest of Rs. 5,94,369/- in the ITR of the appellant. Without prejudice to ground no. 1. The appellant had paid a sum of Rs. 45,96,353/- on account of interest to various parties during the year under consideration out of which she had claimed a sum of Rs. 40,01,984/- from her income (viz. Rs. 16,90,226/- out of Income from Business and Profession and Rs. 23,11,758/- out of matchin....
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....n entries. The id. AO for passing the reassessment orders for both the years relied only on the information coming to her from investigation wing and did not undertake any independent enquiries before reaching on the conclusion, did not share any material in the form of documents found during search in Bhanwar Lal Jain group and statements of Shri Bhanwar Lal Jain and other persons, did not allow any opportunity to cross examine all such parties, not sharing any material received by him on any notice sent by him to above named parties and hence in the above appeals there are fait chances that his action in considering the above loans as accommodation entries will be quashed and the disallowance in this year shall also go The appellant has enclosed confirmations, ITRVs, bank statements of above parties to prove genuineness of the loans to obtained at APB 1-23, which further supports the contention of the appellant that all the above loans were genuine ones and were not accommodation entries. Therefore the Id. CIT(A) was supposed to wait for disposal of the relevant appeals which he did not do and sustained the order. Your honour, it is understood that decision about above l....