TMI Blog2023 (8) TMI 1275X X X X Extracts X X X X X X X X Extracts X X X X ..... copies of income tax return filed by the lenders, their bank statement and their ledger account as placed in the paper book by the assessee. Ld. Counsel has demonstrated from the copy of various documents placed in the paper book as referred above that assessee has provided the complete details of unsecured loan obtained by the assessee during the year under consideration. However, we have find that regarding utilization of the loans the assessee has only stated that the loans were utilized for import of goods. Assessee has not provided any other relevant material to demonstrate that unsecured loans were utilized for import of goods - AO has not verify the utilization of unsecured loan for the business purpose. Therefore, the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons assigned by the learned Principal Commissioner of Income Tax, PCIT, Mumbai-17 is wrong and unlawful to justify the revision of the assessment order made by the assessing officer. The same to be annulled. 3. The fact in brief is that the assessment u/s 143(3) r.w.s. 143(3A) and 143(3B) of the Act for the assessment year 2018-19 was finalized on 24.02.2021 accepting returned income filed by the assessee. 4. Subsequently, on examination of the assessment record, the Ld. PCIT observed that the assessee s case was selected for limited scrutiny for verifying the issues of export/import and unsecured loans. Therefore, Ld. AO was expected to examine not only the source of unsecured loans of ₹ 756.54 lakhs but also the utilization ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the unsecured loans were utiled for business purpose only and advances made were for the business purpose and the interest expenses were rightly claimed as business expenses. However the Ld. PCIT has not agreed with the submission of the assessee and stated that the assessee has not provided complete details of the unsecured loans along with its corresponding utilization for the business purpose. He also pointed out that as per list the total outstanding advances as on 31.03.2018 was for ₹3.65 crore whereas as per the balance sheet the year under consideration, the total unsecured loan was ₹7.56 crore. In view of the above the Ld. PCIT observed that the assessing officer has passed the assessment order in this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ization for the business purpose. In this regard we have perused the copy of notice u/s 142(1) of the Act dated 11.02.2020 issued by the AO vide which various details in respect of the unsecured loan reflected in the balance sheet was called from the assessee. In response the assessee has furnished name and address of the unsecured loans creditors, their PAN no. and amount of unsecured loans taken during the year along with copies of confirmation of loan account and copies of income tax return filed by the lenders, their bank statement and their ledger account as placed in the paper book by the assessee. 9. The Ld. Counsel has demonstrated from the copy of various documents placed in the paper book as referred above that assessee has pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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