TMI Blog2019 (12) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... out bringing on record any corroborative material which would suggest that the loans represented assessee s unaccounted money - In fact, the identity of the loan creditors was accepted by Ld. AO in the assessment proceedings itself. The documents furnished by the assessee with respect to loan creditors include copies of return of income of the lenders, computation of income, Balance Sheet, ledger extracts and bank statements etc., which we have carefully perused. Regarding loans from Shri Prashant Kamat, the assessee has placed on record Income Tax Return of the said lender, Computation of income, financial statements and ledger confirmations which matches with the outstanding balance reflected by the assessee. Regarding last entity i.e. M/s Shardha Energy Infraproject Private Limited, the assessee has placed on record the copy of Income Tax Return, Audited financial statements, ledger confirmation - In fact, no fresh loans have been obtained by the assessee from this entity during the year under consideration and the amount of ₹ 211.71 Lacs represent opening balance. The perusal of all these documents would establish that the assessee was successful in demonstrating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. C1T (A) failed to appreciate that the condition precedent to proceed with scrutiny assessment proceedings was not satisfied as the notice under section 143(2) of the Act, dated 07.08.2013 was not served on the Appellant. Thus, the proceedings conducted pursuant to the notice dated 07.08.2013 and the subsequent assessment order dated 31.03.2015 are bad in law and void ab initio. 2.1 Facts in brief are that assessee being resident corporate assessee stated to be engaged in the business of manufacturing of engineering items and carrying out job work was assessed for year under consideration u/s 143(3) on 31/03/2015 wherein the income of the assessee was determined at ₹ 75.95 Lacs after certain additions u/s 68 for ₹ 414.09 Lacs as against Nil return e-filed by the assessee on 25/09/2012. The case was picked up for scrutiny notice by issuance of notice u/s 143(2) on 07/08/2013 by erstwhile ITO-10(3)(2) which was duly served upon the assessee. The assessee raised objection that the said notice was not received. However, the assessee was shown copy of dispatch register wherein the assessee s name was appearing at Sr. No.-656, a copy of which forms part o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before Ld. AO vide remand report dated 26/10/2016, a copy of which has been placed on record. 3.2 In the remand report, the assessee s objection as to issuance of notice u/s 143(2) were again rejected in the background of observations made in the quantum assessment order as enumerated by us in preceding para 2.1. Regarding additions on merits, the attention was drawn to order sheet entries dated 03/03/2015 wherein it was noted by assessing AO that the companies from whom the loans were obtained, did not have any income to substantiate the loans given to the assessee and therefore, the additions were made u/s 68 and the same were justified. 3.3 The assessee objected to the remand report by submitting that Ld. AO mechanically repeated the contents of the assessment order with regard to issuance of notice u/s 143(2) which was never served upon the assessee. Another objection was that Ld. AO did not even bother to serve any notice to the assessee before submitting the remand report and further, no verification was made to examine the genuineness of the loan transactions which was in violation of principal of natural justice. It was alleged that assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oan creditors either in original assessment proceedings or in remand proceedings. It transpires that the additions were made by Ld. AO merely on doubts without bringing on record any corroborative material which would suggest that the loans represented assessee s unaccounted money. In fact, the identity of the loan creditors was accepted by Ld. AO in the assessment proceedings itself. The documents furnished by the assessee with respect to loan creditors include copies of return of income of the lenders, computation of income, Balance Sheet, ledger extracts and bank statements etc., which we have carefully perused. 5.2 The first entity i.e. M/s Resun Energy Pvt. Ltd. is a corporate entity whose accounts are subjected to audit for year under consideration. This entity has duly filed its return of income for the year under consideration and the amounts advanced by this entity to the assessee is duly reflected as outstanding amount in its Balance Sheet. The ledger confirmation is on record. The perusal of bank statement shows that there are no immediate cash deposits before advancing money to the assessee. Similar are the documents observations with respect to M/s T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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