9911796707
TMI Blog2025 (5) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... 'the Act') relating to the Assessment Year 2016-17. 2. Brief facts of the case is that the assessee is a Partnership Firm engaged in the business of Polymers manufacturing of HDPE Fabrics/Bags. The assessee filed its original Return of Income on 17-10-2016 declaring Nil income. During the year, the assessment has shown turnover of Rs. 6,99,01,834/-, shown other income of Rs. 1,08,97,601/- and net profit of Rs. 2,89,208/-. Regular assessment u/s. 143(3) was made on 12-07-2017 accepting the returned income. The Return of Income was reopened since there is escapement of income on account of claim of depreciation and loans and advances received are genuine from disclosed sources. Hence a notice u/s. 148 was issued on 27-03-2021. 2.1. During t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge 1 to 2) asked at point No. 2 with regard to the alleged loan transaction of Mayur Mavji of Rs. 65 lakhs. In response to the same, the assessee filed a reply on 18.12.2018 (Page 3) in which he explained as under at point no. 4 04 Regarding confirmation of Sharda Saw Mill and Mayur Madhvji, the firm has not obtained loan from these parties during the current financial year and same was not provided. However, copies of ledger account ackw. Duly signed by Ms. New Sharda Saw Mill are submitted here with. Additionally, loan obtained from Mayur Mavji was moved in past and he was not contacted when we had tried in contact him for repayment, accordingly the same amount was written off and considered as income of the current financial year. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd accepted the returned income including the alleged transaction of loan of Rs. 65 lakhs. 3.1. Thus the Assessing Officer categorically investigated the specific loan transaction during the course of original assessment proceedings as well as during the reassessment proceedings and satisfied with the explanation offered by the assessee. Therefore no addition is being made so that, there is no error in the order passed by the Assessing Officer which is prejudicial to the interest of Revenue. Whereas the assessee offered the sum of Rs. 65,00,000/- under other incomes, therefore the Revision proceedings initiated is liable to be dropped. The Ld. CIT(A) though reproduced the above reply of the assessee, but directed the Assessing Officer to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t proceedings also hence the same being illegal and bad in law requires to be quashed. 3. The Learned Pr. Commissioner of Income Tax, Vadodara-1 has erred in not appreciating the fact that all information and related material and evidences had been furnished at the time of original assessment as well as reassessment stage relating to the issues raised in the revision proceedings. The A.O. after examining the evidences and other material considering the same after due application of mind has passed the assessment order. 4. The Learned Pr. Commissioner of Income Tax, Vadodara -1 has erred in not considering the facts that assessment has been made by the Assessing Officer after verification of records, documents, material and evidences pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered for taxation under the head "Other Income" (which is available at Page No. 5 & 6 of the Paper Book). During the reassessment proceedings vide reply dated 23-03-2022, the assessee replied as follows: "03. Copies of Ledger a/c. of Mayur Mavji in our books is enclosed. We have to inform you that the said amount was received in our bank a/c. through other firm M/s. Anand Infrastructure. Instead of payment to respective loanee, the said amount was directly received from M/s. Anand Infrastructure. 05. Unsecured loan of Rs. 65 lakhs received from Mayur Mavji was squared off during the year and accounted as income for that year. When we were comfortable for repayment, the said party could not be contacted and hence firm at the end of the y ..... X X X X Extracts X X X X X X X X Extracts X X X X
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