M/S. JANTA INTERNATIONAL ,MUMBAI V. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 25(2), MUMBAI

ITA 3366/MUM/2024

AI Insights

The case involves M/s. Janta International, which appealed against the order of the National Faceless Appeal Centre (NFAC), Delhi, confirming the addition of Rs. 67,00,000 under section 68 of the Income Tax Act, 1961, for the Assessment Year 2012-13. The primary issue was the treatment of unsecured loans as unexplained cash credits by the Assessing Officer (AO). The AO had disallowed the loans due to insufficient documentary evidence provided by the assessee during the scrutiny assessment. The assessee contested this decision, providing additional evidence during the appellate proceedings, which was not adequately considered by the CIT(A). The Tribunal found that the CIT(A) did not address the evidence concerning each loan creditor and thus remanded the matter back to the CIT(A) for a detailed examination.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 668689 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: F
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAVITA P. KAUSHIK; DR
• Assessee Lawyers: SHASHANK MEHTA; AR
• Keywords: Opportunity of being heard; Additional evidence; Unexplained cash credit

Judgement Text

" | आयकर अपील य अ धकरण यायपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, HON’BLE JUDICIAL MEMBER I.T.A. No. 3366/Mum/2024 Assessment Year: 2012-13 M/s. Janta International Shop No. 1, Veereshwar Krupa Tejpal Road, Vile Parle-East Mumbai - 400057 [PAN: AAFFJ0271R] Vs Assistant Commissioner of Income Tax – 25(2), Mumbai अपीलाथ\u0012/ (Appellant) \u0014\u0015 यथ\u0012/ (Respondent) Assessee by : Shri Shashank Mehta, A/R Revenue by : Ms. Kavita P. Kaushik, Sr. D/R सुनवाई क तार ख/Date of Hearing : 25/06/2025 घोषणा क तार ख /Date of Pronouncement: 27/06/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dt. 30/04/2024 by NFAC, Delhi [hereinafter “the ld. CIT(A)”] pertaining to AY 2012-13. 2. The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the addition of Rs. 67,00,000/- made u/s 68 of the Act by the AO. 3. Briefly stated the facts of the case are that the assessee filed its return of income on 27/09/2012 declaring total income of Rs. 67,26,522/-. The return was selected for scrutiny assessment and accordingly statutory notices were issued and served upon the assessee. During the course of scrutiny assessment proceedings, the AO noticed that the assessee has shown unsecured loans of Rs. 5.49 Crores. The assessee was asked to furnish details of unsecured loans. The assessee I.T.A. No. 3366/Mum/2024 2 filed details of unsecured loans. On perusal of the details, the AO noticed that the assessee has taken unsecured loans to the tune of Rs. 9,45,32,651/- during the year and repaid loan of Rs.3,64,04,500/- thereby making closing balance of unsecured loans as on 31/03/2012 to Rs. 5.49 Crores. The AO further found that the assessee has paid total interest of Rs. 19,11,234/- on the unsecured loans. 3.1. The assessee was asked to furnish the confirmation from loan parties along with the copies of bank statement and copy of income tax return. On receiving no plausible reply, the AO treated the unsecured loans obtained from the following 12 parties as unexplained cash credit and made the addition of Rs. 67,00,000/- and further disallowed interest of Rs. 6,08,751/- :- 1. Dhanlaxmi J Gangar 2. HimmatlalChheda 3. Kewal Vinod Kenia 4. M D Kanakia (HUF) 5. Naresh Kumar GangjiGangar 6. Neshi L Shah 7. Piyush Jaddvaigangar 8. Pushpaben Gala 9. SharadNagindas Shah 10. SunitaJitendra Shah 11. Mandakini Shard Shah 12. Prateek Clearing Agency 4. The assessee carried the matter before the ld. CIT(A) and furnished additional evidence. The ld. CIT(A) called for a remand report from the AO. After considering the facts and the submission and the documentary evidence furnished by the assessee, the ld. CIT(A) was I.T.A. No. 3366/Mum/2024 3 of the opinion that the assessee again failed to file the documentary evidence to the satisfaction of the AO in the remand proceedings and confirmed the additions and also confirmed the disallowance of interest. 5. Before us, the ld. Counsel for the assessee vehemently stated that the assessee had filed all the documentary evidence before the ld. CIT(A) and also during the remand proceedings but the ld. CIT(A) has not taken any cognizance of such documentary evidence. 6. On perusal of the findings of the ld. CIT(A), we find that the findings are completely silent on the evidence claimed to have been filed by the assessee during the appellate proceedings and also during the remand proceedings. We are of the considered view that the ld. CIT(A) ought to have given findings on the evidence furnished by the assessee in respect of each of the 12 parties whose loan were treated as unexplained cash credit. Therefore, in the interest of justice and fairplay, we restore the issue to the file of the ld. CIT(A) and the ld. CIT(A) is directed to decide each loan creditor on the basis of the documentary evidence filed in respect of such loan credits. It is needless to mention that the ld. CIT(A) shall decide the issue after affording reasonable and adequate opportunity of being heard to the assessee. 7. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 27th June, 2025 at Mumbai. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 27/06/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs I.T.A. No. 3366/Mum/2024 4 आदेश क \u0016\u0017त\u0018ल\u001aप अ े\u001aषत /Copy of the Order forwarded to : 1. अपीलाथ! / The Appellant 2. \u0016\"यथ! / The Respondent 3. संबं&धत आयकर आयु(त / Concerned Pr. CIT 4. आयकर आयु(त ) अपील ( / The CIT(A)- 5. \u001aवभागीय \u0016\u0017त\u0017न&ध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड. फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपील य अ&धकरण ITAT, Mumbai "