DHARTI DEVELOPERS ,MUMBAI V. .INCOME TAX OFFICER WARD -24(1)(5), MUMBAI

ITA 3895/MUM/2024

AI Insights

The case involves Dharti Developers, a builder and developer, who appealed against the decision of the CIT(A)-NFAC, Delhi, which confirmed the addition of Rs.28,99,459 made by the AO under section 68 of the Income Tax Act, 1961, for the assessment year 2013-14. The addition was initially made because the AO found that the assessee did not satisfactorily explain the loans taken from eight creditors. The assessee argued that they had provided sufficient documentation to prove the legitimacy of these loans, including confirmation letters and bank statements, which the AO failed to verify. The Tribunal found merit in the assessee's submissions and decided that the issue required a fresh examination by the AO.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32043 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 05-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA
• Assessee Lawyers: ROHAN DEHHPANDE
• Keywords: Set aside; Opportunity of being heard
• Section: 133(6)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D”, MUMBAI BEFORE JUSTICE (RETD.) SHRI C.V. BHADANG, PRESIDENT AND SHRI B.R. BASKARAN, ACCOUNTANT MEMBER ITA No. 3895/Mum/2024 Assessment Year : 2013-14 Dharti Developers, Flat No. 701, Acropolis Co-Op. Housing Soc. Ltd., Plot No. 28, Lokhandwala Complex, Andheri (W), Mumbai PAN : AAHFD7804J vs. Income Tax Officer, Ward-24(1)(5), 5th Floor, Piramal Chambers, Lalbaugh, Mumbai. (Appellant) (Respondent) For Assessee : Shri Rohan Dehhpande For Revenue : Shri R.R. Makwana, Sr.DR Date of Hearing : 12-12-2024 Date of Pronouncement : 12-12-2024 O R D E R PER B.R. BASKARAN, A.M : The assessee has filed this appeal challenging the decision rendered by the Ld.CIT(A)-NFAC, Delhi confirming the addition of Rs.28,99,459/- made by the Assessing Officer (AO) u/s.68 of the Income Tax Act, 1961 („the Act‟) in AY.2013-14. 2 ITA No. 3895/Mum/2024 2. The Ld.AR submitted that the assessee is a builder and developer. During the course of assessment proceedings, the AO noticed that the assessee has borrowed loans from ten persons. Upon examination of those creditors, the AO took the view that the assessee has not discharged its onus placed u/s.68 of the Act in respect of loans taken from eight persons mentioned in the assessment order. Accordingly, the AO assessed those loans aggregating to Rs.28,99,459/- as unexplained income of the assessee u/s.68 of the Act. The Ld.CIT(A) also confirmed the same. 3. The Ld.AR submitted that the assessee has furnished confirmation letters obtained from all the eight persons and also their bank accounts before the AO, but the same has not been verified by the AO. He submitted that the AO has made the addition in respect of six creditors mainly for the reason that the notices u/s 133(6) of the Act issued by him, were either returned or not responded to. He submitted that the AO should have examined the documents furnished by the assessee to prove the cash credits. He submitted that the Ld.CIT(A) also did not examine the documents properly. Accordingly, he prayed that this addition may be restored to the file of the AO for examining it afresh. 4. We heard Ld.DR and perused the record. We do not find any comment of the AO about the documents furnished by the assessee. Hence, we find merit in the submissions made by the Ld.AR. According to the Ld.AR, the assessee has furnished confirmation letters, bank account copies, ledger account copies etc., to prove the cash credits. In our view, the AO should have examined those documents before making any decision. Accordingly, we are of the view that this issue requires fresh examination at the end of the AO. Accordingly, we set aside the order passed by the Ld.CIT(A) on this issue and restore the same to the file of the AO for examining it afresh. We also direct the assessee to furnish all the information and explanation that is required to prove the 3 ITA No. 3895/Mum/2024 cash credits. After affording adequate opportunity of being heard, the AO may take appropriate decision in accordance with law. 5. In the result, the appeal filed by the assessee is partly allowed. Order pronounced in the open court on 12-12-2024 Sd/- Sd/- (JUSTICE (RETD.) C.V. BHADANG) PRESIDENT (B.R. BASKARAN) ACCOUNTANT MEMBER Mumbai, Date: 12-12-2024 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, “D” Bench, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai "