SIDDHA CONSTRUCTION,DADRA AND NAGAR HAVELI (UT) V. THE DEPUTY COMMISSIONER OF INCOME TAX, VAPI CIRCLE , VAPI

ITA 320/SRT/2025

AI Insights

The case involves Siddha Construction, the appellant, contesting an addition of Rs. 34,50,000 to their income, which was categorized as unsecured loans received during the assessment year 2012-13. Initially, these loans were accepted by the Assessing Officer during the regular assessment under section 143(3) of the Income-tax Act, 1961, based on the confirmations and ITRs of the loan parties. However, following a search operation and subsequent re-assessment, these loans were added back to the income under section 40a(ia) for non-deduction of TDS on interest payments. The Tribunal, after reviewing the case, decided in favor of the assessee, stating that the loans had been adequately verified and accepted in the earlier assessment, and no new material evidence justified their addition in the re-assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 831729 (ITAT-SURAT)
• Duration Of Justice: 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: misc
• Appeal Filed On: 12-03-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH KUMAR
• Assessee Lawyers: KAUSHIK KEJRIWAL
• Keywords: TDS; Accommodation entries; Bogus
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS SUCHITRA RAGHUNATH KAMBLE, JUDICIAL MEMBER I.T.A. No. 320/SRT/2025 (Assessment Year: 2012-13) Siddha Construction, 303, B-2, Vraj Darshan, Shree Krishna Apartment, Survey No.311/2, Dadra Nagar Haveli, Dadra & Nagar Haveli - 396191 [PAN: ABUFS4421M] Vs. DCIT, Vapi Circle, Vapi (Appellant) .. (Respondent) Appellant by : Shri Kaushik Kejriwal, CA Respondent by: Shri Ashish Kumar, Sr. DR Date of Hearing 19.01.2026 Date of Pronouncement 23.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT: This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as “Ld. CIT(A)”] dated 05.03.2025, under section 250 of the Income-tax Act, 1961 [in short “the Act”] for the Assessment Year 2012-13. 2. Heard arguments of both parties and perused the record. In this case, the addition of Rs.34,50,000/- on account of unsecured loan received from the assessee. In the present case, the assessment under section 143(3) has been conducted on 11.12.2014 wherein vide inquiry dated 20.10.2014 (Page 8 of the paper book), the then Assessing Officer duly inquired about the loan received by Printed from counselvise.com ITA No. 320/Srt/2025 Asst. Year: 2012-13 - 2– the assessee. The assessee had taken bogus accommodation entries for the following persons, which are as under: 3. The assessee has filed duly reply along with the confirmation of ITRs of the loan parties (Page 15 of paper book) and having gone through the confirmations of ITRs, the then Assessing Officer has accepted the loan received by the assessee and no addition has been made. Further, the case of the assessee has been examined again by re-opening the order has been passed on 29.07.2016 reading the re-assessment inquiries, this deduction about the loans as well as the factum on non-deduction of TDS at the interest payment. The addition has been made under section 40a(ia) for non-deduction of TDS accepting the loan by the assessee. However, going to search in the case of Mr. Vipul Vidur Bhatt on 05.02.2016 based on his statement that Mr. Vipul Vidur Bhatt containing seven entities which are used to extend loans to different parties. Based on this information, the case of the assessee has been re-opened. 4. Before us, Ld. Counsel submitted that the name of the lenders of the assessee have not been proved by Mr. Vipul Vidur Bhatt, but the reference was merely through round of proceedings disregarding the proceeding. We find that these consequences of events and all three rounds are done in the assessment for the same loans. Since the loans have been examined during the regular assessment Sr. No. Name Amount 1 Anjana S. Trivedi 5,00,000 2 Jignesh Bhatt HUF 5,00,000 3 Purnima Jani 5,00,000 4 Ramesh Jani 4,50,000 5 Rasik K. Raval HUF 5,00,000 6 Shakuntala Rawal 5,00,000 7 Shantaben Rawal 5,00,000 Total 34,50,000 Printed from counselvise.com ITA No. 320/Srt/2025 Asst. Year: 2012-13 - 3– under section 143(3) proceedings in absence of any other material and in the persons of said confirmations, no contrary view can be taken. In the appeal of the assessee is allowed. 5. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 23.01.2026. Sd/- Sd/- (SUCHITRA R. KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Surat; Dated 23.01.2026 **SAMANTA आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण,/ DR, ITAT, Surat 6. गाडŊ फाईल / Guard file. BY ORDER, // TRUE COPY // Asstt. Registrar, Surat Printed from counselvise.com "