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Issues involved: Appeal against deletion of addition u/s 69A and impugning reopening of assessment u/s 147.
Deletion of addition u/s 69A: The Revenue appealed against the deletion of an addition of Rs. 12 lacs made by the AO u/s 69A of the IT Act. The case involved a company engaged in real estate development, where a search operation revealed accommodation entries provided by Shri Gajendra Porwal's group. The AO reopened the assessment based on this information. The AO contended that a concern provided a loan of Rs. 12 lacs to the assessee, which was unexplained investment u/s 69A. However, the assessee argued that it had repaid the loan taken in earlier years and no fresh loan was taken during the relevant period. The CIT(A) deleted the addition, stating that the repayment was genuine and reflected in the books, hence not falling under s. 69 or s. 69A. The Tribunal upheld the CIT(A)'s decision, emphasizing that no addition could be made under these sections in the present year. Impugning reopening of assessment u/s 147: The assessee filed a cross-objection against the reopening of assessment u/s 147 by issuance of notice u/s 148. The AO reopened the assessment based on information obtained during a search operation. The assessee contended that the return originally filed should be treated as filed in response to this notice. However, the Tribunal did not address this issue as the main appeal regarding addition u/s 69A was dismissed. The cross-objection was rejected as the counsel did not press it during the hearing. Conclusion: The Tribunal dismissed the Revenue's appeal against the deletion of addition u/s 69A and the assessee's cross-objection against the reopening of assessment u/s 147. The decision was based on the genuineness of the repayment and the lack of grounds for addition under the relevant sections of the IT Act.
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