TaxTMI 
TaxTMI 
2026 (9) TMI 1694
X X X X Extracts X X X X
X X X X Extracts X X X X
.... proposing variations prejudicial to the assessee was not validly served, violating section 144B (1) (xxi) (b) of the Act and Rule 127 of the Rules, rendering the reassessment order under section 147 read with section 144B dated 31.03.2023, illegal and violative of natural justice consequently, the aforesaid order passed by the Learned AO and confirmed by the Honourable CIT Appeals deserves to be quashed. GROUND 3 That the jurisdictional challenges raised in the foregoing grounds apply mutatis mutandis to the additions and disallowances challenged in Grounds Nos 7 to 11. Accordingly, the additions and disallowances impugned in Grounds No 7 to 11 are liable to be deleted on the basis of the plea raised in Ground No 2. GROUND 4 That the assessment was framed illegally and OR 3 without affording adequate opportunity of being heard, and therefore deserves to be annulled OR set aside. GROUND 5 AND 6 GROUND 5 That the Learned CIT Appeals erred in rejecting the appellants application dated 11.08.2023 for admission of additional evidence under rule 46A (1) (C)and 46A (1) (d), despite insufficient opportunity being granted during the assessment proceedings due to improper ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he assessment proceedings the assessee inadvertently filed the copy of account for the previous year 2016-17 in place of that for the previous year 2017-18, and that the Id. Assessing Officer proceeded upon that document without noticing that it pertained to the preceding previous year. The figure of Rs. 11,16,16,554/- adopted in the assessment order does not represent any credit made in the previous year 2017-18. 14.3 It was further submitted that no sum on account of interest payable to either party was debited to the profit and loss account for the year ended 31.03.2018, as is apparent from Note 15 thereto, and that no such claim was made in the computation of income or in the return for assessment year 2018-19. 3. We have examined relevant details. The tabulation reproduced reconciles precisely with the figures appearing in the balance sheet as on 31.03.2018. In the case of Pawan Impex (P) Ltd., the opening balance of Rs. 15,34,95,056/- reduced by the payment of Rs. 2,88,00,000/-yields exactly the closing balance of Rs. 12,46,95,056/-, with no credit entry intervening. In the case of RS Infrastructure (P) Ltd., the opening balance of Rs. 47,73,46,450/-, Increased by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e sheet as on 31.03.2010, and the advance itself is reflected in the 'Loans and Advances' schedule of that very balance sheet The bank statement of current account No. 00030340031154 with HDFC Bank for the period 01.07.2009 to 30.09.2009 evidences the outward remittances. 15.4 The transaction did not fructify. The assessee instituted proceedings before the Hon'ble High Court of Bombay on 26.06.2015 for declaration, injunction and specific performance (Suits No. 1122 of 2015 and 358 of 2016), which culminated in orders dated 02.05.2017. In compliance with those orders a sum of Rs. 39,50,00,000/- was refunded to the assessee between 04.05.2017 and 05.03.2018, leaving a balance of Rs. 1,48,00,00,000/- recoverable as on 31.03.2018. The ledger account of Shivalik Ventures (P) Ltd. for the period 01.04.2009 to 31.03.2018 was placed on record before the Id. Assessing Officer by reply dated 17.02.2023. 15.7 It was additionally submitted that the notice reproduced in the body of the assessment order in relation to this item merely called for details of the capital advance of Rs. 148 crores- details which were furnished on 17.02.2023 - and nowhere stated that a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the income did not result. Here they do, and overwhelmingly so. GROUND NO. 10 ADDITION OF Rs. 92,58,00,000/- ON ACCOUNT OF ALLEGED EXCESS WRITE-OFF 7. The Ld. Counsel of the assessee has submitted as under :- 17. The Id. Assessing Officer added a sum of Rs. 92,58,00,000/- to the total income, describing it as an unallowable excess sum written off out of the Capital work in Progress written off in the accounts for the year ended 31.03.2018. 17.4 Being conscious that a capital write-off of this character is not allowable as a deduction under sections 30 to 43D of the Act, the assessee did not claim it. It added back the whole of Rs. 2,80,07,79,471/- while computing income from business, under the head "any other item or items of addition under section 28 to 44DA" appearing at row 23 of page 39 of Form ITR-6. The effect is visible on the face of the return: the book loss of Rs. (-)279,64,60,811/- was thereby converted into a positive computed income. 8. It was submitted that the Id. Assessing Officer failed to notice the add-back in the computation of income and proceeded to add back Rs. 92,58,00,000/- out of the very same write-off, resulting in the s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sment year 2018-19 carries no entry of tax deducted at source referable to interest from any of them, save an amount of Rs. 36,23,474/-, which the assessee has itself duly offered to tax in its return. The books of account for the year were audited and finalised on 05.11.2019, by which date the garnishee orders were in force and four of the borrowers stood admitted into insolvency. Reliance was placed upon Dy. CIT vs. Garish R. Tanti, ITA No. 112/Rjt/2018 (ITAT, Rajkot), order dated 31.10.2022, and upon Dy. CIT vs. Intercontinental India, ITA Nos. 2033/Ahd/2007 and 600 & 601/Ahd/2009 (ITAT, Ahmedabad), order dated 22.10.2010, the latter holding in terms that the mere fact that interest was charged in an earlier year is no ground for making an addition in the year under appeal, and both applying the principle laid down by the Hon'ble Supreme Court in CIT vs. Shoorji Vallabhdas & Co., (1962) 46 ITR 144, and Godhra Electricity Co. Ltd. vs. CIT, (1997) 225 ITR 746. Reference was also made to CIT vs. Asian Hotels Ltd., (2010) 323 ITR 490 (Del), where the taxation of notional interest was declined in the absence of a specific provision. Submissions of the Revenue The Id. Sr.....