INCOME TAX OFFICER, MUMBAI V. BLUE MOON HOUSING AND DEVELOPMENT PVT. LTD. , MUMBAI

ITA 4949/MUM/2024

AI Insights

The case involves appeals by the Income Tax Officer against Blue Moon Housing and Development Pvt. Ltd., concerning the deletion of additions made under section 68 of the Income Tax Act, 1961, by the Ld.CIT(A) for the assessment years 2014-15 and 2015-16. The additions were initially made by the AO based on information from the Investigation Wing about accommodation entries provided by Shri Vipul Vidur Bhatt. However, the Ld.CIT(A) found that the loans in question were taken in the financial year 2012-13, relevant to AY 2013-14, and not in the years under consideration. Consequently, the additions were deleted. The tribunal upheld the Ld.CIT(A)'s decision, agreeing that no loans were taken in the relevant years, thus no additions under section 68 were justified.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 32219 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 13-11-2024
• Assessment Year: 2015-2016
• Appeal Filed On: 24-09-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UMESHA CHANDRA SINHA
• Assessee Lawyers: JAY BHANSALI
• Section: 68

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI “SMC” BENCH : MUMBAI BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER ITA Nos. 4902/Mum/2024 4949/Mum/2024 C.O. Nos. 240/Mum/2024 (Arising out of ITA No. 4902/M/24) 241/Mum/2024 (Arising out of ITA No. 4949/M/24) : : : : A.Y. : 2014-15 A.Y. : 2015-16 A.Y. : 2014-15 A.Y. : 2015-16 Income Tax Officer, Aayakar Bhavan, M.K.Road, Mumbai. (Appellant) Vs. Blue Moon Housing and Development Pvt. Ltd., Building No. 44/220, Gandhi Nagar, Bandra (East) Mumbai. PAN : AABCB7943F (Respondent/Cross Objector) For Assessee : Shri Jay Bhansali For Revenue : Shri Umesha Chandra Sinha Date of Hearing : 13-11-2024 Date of Pronouncement : 21-11-2024 ORDER PER BENCH : The appeals filed by the Revenue and the Cross Objections filed by the assessee are directed against the orders passed by the Ld.CIT(A)- NFAC, Delhi and they relate to Assessment Years (AYs.) 2014-15 & 2015-16. The Revenue is aggrieved by the decision of the Ld.CIT(A) in 2 ITA Nos. 4902 & 4949/Mum/2024 C.O.Nos. 240 & 241/Mum/2024 deleting the addition made by the AO u/s. 68 of the Income Tax Act, 1961 („the Act‟) in both the years under consideration. In the cross objections, the assessee is challenging the validity of reopening of assessment of both the years under consideration. 2. We heard the parties and perused the record.The AO received information from Investigation Wing that the details of accommodation entries provided by Shri Vipul Vidur Bhatt through his group of companies. The AO noticed from the above said details that the assessee has availed Rs. 25 lakhs loan each in both the years under consideration. i.e., in the years relevant to AYs. 2014-15 and 2015-16. The AO added the above said amount of Rs.25 lakhs each in both the years, as un-explained cash credit u/s. 68 of the Act. 3. In the appellate proceedings, the Ld.CIT(A) noticed that the assessee had actually taken loans from Shri Vipul Vidur Bhatt group during the FY. 2012-13 relevant to the AY.2013-14, i.e., the assessee has not taken any loan from the above said group in both the years under consideration.Since no loan has been taken in these two years, the question of making any addition u/s 68 of the Act will not arise. Accordingly, the Ld.CIT(A) deleted the additions made by the AO u/s. 68 of the Act in both the years under consideration. 4. Before us, the Revenue could not produce any material to contradict the factual findings given by the Ld.CIT(A). Since the assessee has not taken any loan during the years under consideration from Shri Vipul Vidur Bhatt group, the question of making any addition u/s. 68 of the Act will not arise. Accordingly, we affirm the orders passed by the Ld.CIT(A) in both the years under consideration. 3 ITA Nos. 4902 & 4949/Mum/2024 C.O.Nos. 240 & 241/Mum/2024 5. In the Cross Objections, the assessee is challenging the validity of re-opening of the assessment for both the years under consideration. Since the relief granted by the Ld.CIT(A) in both the years have been affirmed by us, the above said legal issue urged by the assessee in both the years is rendered academic in nature. Accordingly, we leave them open. 6. In the result, both the appeals of the Revenue and both the Cross Objections filed by the assessee are dismissed. Order pronounced in the open court on 21-11-2024 Sd/- Sd/- [RAJ KUMAR CHAUHAN] [B.R. BASKARAN] JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 21-11-2024 TNMM Copy to : 1) The Appellant 2) The Respondent 3) The CIT concerned 4) The D.R, “SMC” Bench, Mumbai 5) Guard file By Order Dy./Asst. Registrar I.T.A.T, Mumbai "