TaxTMI 
TaxTMI 
2026 (1) TMI 1671
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....KTM Impex Pvt. Ltd., was reopened by the AO for AY 2019-20 on the basis of information received from the Investigation Wing after a search operation conducted in the case of Galaxy Group, wherein the residence of Shri Himanshu Verma, who is a known accommodation entry provider, was also covered and it was mentioned therein that the assessee had received accommodation entry amounting to Rs. 50,00,000/- from one concern, M/s Highrise Securities & Trading Pvt. Ltd, which was controlled and operated by Shri Himanshu Verma during the relevant year. Accordingly, after taking approval from the competent authority, notice u/s 148 of the Income-tax Act, 1961 (for short 'the Act') dated 31.03.2024 was issued and duly served on the assessee by the Ass....
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....ssessee. 4. Aggrieved assessee is in appeal before us raising following grounds of appeal :- "Each ground is independent and without prejudice to the others: 1. Reopening of assessment u/s 147 is bad in law and void ab initio The Learned CIT(A) erred in law and on facts in upholding the reopening of assessment u/s 147. The reopening was initiated based on generalized third party information without any independent application of mind or tangible material relating specifically to the Appellant. Relied on. 2. Reassessment based on borrowed satisfaction and constitutes mere change of opinion The AO acted mechanically based on third-party statements and no inquiry was conducted to corroborate alle....
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.... has disallowed interest of Rs. 5,45,753 alleging that the same pertains to non-genuine loans, However, the Appellant had repaid the loan much before the reassessment and had submitted all supporting documentary evidence, including confirmations, bank statements, and interest computation. The said interest expenditure was incurred wholly and exclusively for the purpose of business and is allowable under section 36(1)(iii). The disallowance is unjustified in the absence of any finding that borrowed funds were used for non-business purposes or that the transaction was fictitious. 7. Addition u/s 68 without rejection of books or defect notice The Appellant's books were never rejected nor any specific defect point....
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....ss-examination was not provided. He submitted that the AO relied upon statements of third parties without granting the assessee opportunity to cross-examine them, which vitiates the assessment. 7. Ld. AR further heavily relied on his submissions that loan was repaid in full before reassessment proceedings. He submitted that the loan taken from Highrise Securities & Trading Private Limited amounting to Rs. 50,00,000 in question was fully repaid by the assessee during FY 2020-21 well before the issuance of notice u/s 148. He submitted that if a loan amount which was taken previously has been repaid before assessment proceedings started cannot be construed as un-explained loan and added to income of the assessee. In this regard, he relied o....
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....ited books of accounts. Accordingly, in view of his submissions and decisions relied upon, he pleaded that the additions made and confirmed u/s 68/69C may be deleted. In this regard, ld. AR submitted that on the same facts on record, the ITAT had decided the issue in favour of the assessee in the following cases :- (i) Real Innerspring Technologies (P.) Ltd. vs. ACIT (2025) 174 taxmann.com 1130 (Delhi-Trib.) (ii) ITO, Ward 52 (1), New Delhi vs. M/s. Novel Infratech - ITA No.188/Del/2025; (iii) Dazzling Construction (P.) Ltd. vs. ITO - (2025) 172 taxmann.com 860 (Delhi-Trib.); and (iv) DCIT, Central Circle 2(4), Ahmedabad vs. Shri Asit Surendrabhani Shah - ITA No.945/Ahd/2018. 11. On the other hand, ld.....
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....te, the accommodation entries are taken which will remain in the books of account and they will ultimately written off over the period of time. These loans were normally not repaid. In the given case, it is brought to our notice that the assessee has received the unsecured loan through the banking channel and repaid thru the banking channel as under :- Name of the Lender Amount of the Loan Date on which loan taken Date of interest payment Date of repayment of loan M/s. Citzy Infraheights Pvt. Ltd. 50,00,000 09.07.2015 (Pg 38 of the PB) 30.12.2017 (Pg 40 of the PB) 06.12.2017 30.12.2017 (Pg 39 & 40 of the PB) M/s. CEA Consultants Pvt. Ltd. 50,00,000 18.03.2016 (Pg 81 of the PB) 27.04.2016 28.03.2017 ....