TaxTMI 
TaxTMI 
2026 (11) TMI 82
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...., the ld. CIT(A) has erred in conformity the action of ld.AO in reopening the assessment under section 147 of Income Tax Act, 1961. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the reassessment proceedings being illegal and without jurisdiction. 2. In the facts and circumstances of the case and in law, the ld. CIT(A) has erred in conformity the action of ld.AO in issuing notice under section 148 of Income Tax Act, 1961 without obtaining proper sanction under section 151 of the Income Tax Act, 1961. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by quashing the reassessment proceedings being illegal and without jurisdiction. 3. In the facts and circumstances of the case and in law the ld. CIT(A) has erred in conformity the action of ld.AO in making addition of Rs. 40,00,000 under section 68 on account of alleged unexplained cash credit. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by deleting the entire additio....
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.... bank accounts of these companies were used for routing unaccounted money through cheques, demand drafts, RTGS and NEFT in lieu of cash. 7. The Assessing Officer reproduced an extensive portion of the Investigation Wing's report describing the alleged modus operandi of the Jain Brothers. The report referred to several companies allegedly operated through dummy directors and employees. It also referred to computers, Tally data, blank signed cheque books, share certificates, bank account opening documents, income-tax return credentials, authorisation letters and other documents stated to have been found during the search. 8. Insofar as the assessee was concerned, the Assessing Officer noticed that M/s Churu Overseas had obtained an unsecured loan of Rs. 40,00,000/- from M/s Ambarnuj Finance and Investment Pvt. Ltd. The transaction was reflected in the audit report furnished in Form No. 3CB dated 09.09.2015 and in column No. 31(a) thereof. The assessment order itself records that the loan of Rs. 40,00,000/- was repaid during the year. 9. The Assessing Officer issued a notice under section 142(1) dated 25.10.2018, requiring the assessee to furnish the ledger account of M/s Amb....
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....action had been established through documentary evidence. The appellate order records that the assessee placed on record the name, address, PAN and return of income of M/s Ambarnuj Finance and Investment Pvt. Ltd., the confirmation of account, the lender's bank statement evidencing advancement of the loan through banking channels and the assessee's bank statement evidencing receipt and repayment of the loan. 15. The assessee contended that the Assessing Officer had not conducted any independent inquiry into the documentary evidence and had made the addition solely on the basis of the Investigation Wing's report. It was further contended that the persons whose statements were relied upon were not examined by the Assessing Officer and no opportunity of cross-examination was afforded to the assessee. 16. The CIT(A) rejected the grounds challenging the reopening after observing that the Assessing Officer had acted upon information received from the Investigation Wing and had obtained prior approval from the Additional Commissioner of Income-tax, Range-Jhunjhunu. 17. On merits, the CIT(A) observed that the name of M/s Ambarnuj Finance and Investment Pvt. Ltd. appeared in the In....
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.... deletion of an addition relating to unsecured loans where the loans had been repaid in the same assessment year and the assessee had furnished documentary evidence relating to the lender companies. 22. Per contra, the learned DR relied upon the orders passed by the Assessing Officer and the CIT(A). He submitted that the addition was supported by the report of the Investigation Wing, the search material and the statements recorded during the search proceedings. The learned DR particularly invited our attention to the statement of Ms. Surbhi Chandra reproduced at pages 13 and 14 of the assessment order. He submitted that Ms. Surbhi Chandra had admitted that she was merely a non-working or employee director of M/s Ambarnuj Finance and Investment Pvt. Ltd. and that the affairs of the company were controlled by the Jain Brothers. According to the learned DR, the assessee had failed to establish the genuineness of the loan and the addition deserved to be sustained. 23. We have considered the rival submissions and perused the material available on record. The surviving controversy is whether the loan of Rs. 40,00,000/- received by the assessee from M/s Ambarnuj Finance and Investme....
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....iven by the Jain Brothers. The statement may be relevant to the question of who actually managed those companies. However, the portion reproduced in the assessment order does not state that the particular loan of Rs. 40,00,000/- advanced to the assessee was fictitious, nor does it state that the assessee had paid any cash in consideration of receiving the loan. 28. Likewise, the statement of Shri Saurabh Aggarwal relates to accommodation entries allegedly obtained by M/s Sapphire Polyvinyl Pvt. Ltd. It describes the alleged modus operandi adopted in the case of that company. It does not identify the assessee as having paid cash or obtained the impugned loan in consideration thereof. The statements relied upon by the lower authorities, therefore, do not establish a direct nexus between the assessee and any cash allegedly routed through M/s Ambarnuj Finance and Investment Pvt. Ltd. 29. The CIT(A), while confirming the addition, relied upon the presence of the lender's name in the Investigation Wing's report and the statement of Shri Saurabh Aggarwal. The CIT(A), however, did not record any finding as to why the confirmation, return acknowledgement, lender's bank statement and t....