Naresh T. Wadhwani, Pune V. Income-tax Officer, Ward - 8(4), Pune

MA 237/PUN/2022

AI Insights

The case involves Shri Naresh T Wadhwani, who filed a miscellaneous application under Section 254(2) of the Income Tax Act, 1961, seeking to recall the Tribunal's order dated 26.07.2022. This order had upheld the lower authorities' decision treating his unsecured loans of Rs.4 crores as unexplained cash credits. The assessee argued that the nature of the unsecured loans and the repayment of interest were not adequately discussed, and contested the application of the Supreme Court's decision in PCIT vs. NRI Iron & Steel Ltd., which was deemed irrelevant to his case. The Tribunal, after considering the arguments and relevant judicial precedents, dismissed the application, affirming the lack of genuineness of the unsecured loans as required by Section 68.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137421 (ITAT-PUNE)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 12-01-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 21-08-2022
• Other Referred Cases: PCIT vs. NRI Iron & Steel Ltd., ACIT vs. Souhadra Kutch Stock Exchange Ltd., CIT vs. Reliance Telecom Ltd., CIT vs. Ramesh Electric and Trading Co.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B” : PUNE BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER M.A.No.237/PUN./2022 Arising out of ITA.No.792/PUN./2018 - Assessment Year 2014-15 Shri Naresh T Wadhwani, Office No.9, Umed Bhavan, Canara Bank, Pimpri, Pune – 411 018. PAN AABPW7203Q vs. The Income Tax Officer, Ward – 8(4), Pune – 411 037. (Applicant) (Respondent) For Assessee : Shri V.L. Jain For Revenue : Shri Ramnath P. Murkunde Date of Hearing : 06.01.2023 Date of Pronouncement : 13.01.2023 ORDER PER SATBEER SINGH GODARA, J.M. This assessee’s miscellaneous applications filed u/s.254(2) of the Income Tax Act, 1961 [in short “the Act”] seeks to recall the tribunal’s order dated 26.07.2022 upholding the lower authorities action treating his unsecured loans of Rs.4 crores as unexplained cash credits. Heard both the parties. Case file perused. 2. Learned counsel has raised assessee’s twin primary arguments that we have not elaborately discussed the nature of his impugned unsecured loans followed by repayment of interest and also erred on facts and in law in following hon'ble apex court’s decision in PCIT vs. NRI Iron & Steel Ltd., [2019] 2 MA.No.225/PUN./2022 in ITA.No.2640/PUN./2017 412 ITR 161 (SC) which in fact dealt with an issue of exorbitant share premium only. Mr. Jain sought to buttress the assessee’s point that it is nowhere mandatory in case of unsecured loans that the concerned party would always file documentary evidence of interest agreement since the same could indeed be in the nature of an oral agreement as well. 3. Learned DR has placed strong reliance on our order confirming the impugned addition. 4. We have given our thoughtful consideration to the foregoing rival submissions in the assessee’s instant miscellaneous application and find no merit therein. We make it clear that various landmark judicial precedents [2008] 305 ITR 277 (SC) ACIT vs. Souhadra Kutch Stock Exchange Ltd., [2021] 133 taxmann.com 41 (SC) CIT vs. Reliance Telecom Ltd., and [1993] 203 ITR 497 (Bom.) CIT vs. Ramesh Electric and Trading Co. has settled the law that the purpose of sec.254(2) of the Act is only to cure apparent mistakes on record than indulging in detailed roving enquiries. We further observe that our impugned order has already upheld the learned lower authorities action that the assessee’s unsecured loans in issue indeed lacked genuineness so as to attract sec.68 addition of unexplained cash credits. Learned counsel’s endeavour to find a fault here or there in our order hardly 3 MA.No.225/PUN./2022 in ITA.No.2640/PUN./2017 comes to assessee’s rescue in the given facts and circumstances of the case. We thus reject the assessee’s instant miscellaneous application. 5. This assessee’s miscellaneous application is dismissed. Order pronounced in the open Court on 13.01.2023. Sd/- Sd/- [DR. DIPAK P. RIPOTE] [SATBEER SINGH GODARA] ACCOUNTANT MEMBER JUDICIAL MEMBER Pune, Dated 13 th January, 2023 VBP/- Copy to 1. The appellant 2. The respondent 3. The Ld. CIT(A) concerned. 4. The CIT concerned 5. D.R. ITAT, Pune “B” Bench, Pune 6. Guard File. //By Order// Assistant Registrar, ITAT, Pune Benches, Pune.