SYNERGY AUTO INC,ANDHERI EAST V. INCOME TAX OFFICER, MUMBAI

ITA 4600/MUM/2024

AI Insights

The case involves Synergy Auto Inc., which appealed against the order of the Commissioner of Income Tax (Appeals) confirming the addition of unsecured loans as unexplained credits. The appeal was initially time-barred by 129 days due to a medical emergency affecting the assessee's ability to manage tax matters, but the delay was condoned. The primary contention was the addition of Rs. 12,50,000 and Rs. 15,91,200 as unexplained credits from unsecured loans. The Tribunal admitted additional evidence that was not presented at the earlier stages due to the managing partner's inability to attend the proceedings, and thus decided to remand the matter back to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 28606 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Assessment Year: 2017-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BHANGEPATIL PUSHKARAJ RAMESH; DR
• Assessee Lawyers: SUKHSAGAR SYAL; AR
• Keywords: Opportunity of being heard; Additional evidence; Unexplained cash credit

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI ANIKESH BANERJEE, HON’BLE JUDICIAL MEMBER I.T.A. No. 4600/Mum/2024 Assessment Year: 2017-18 Synergy Auto Inc. Akhtar Compound Next to Hotel Peninsula Ghatkopar, Andheri Link Rd. Sakinaka, Andheri East Mumbai - 400072 [PAN: ABUFS2230H] Vs Income Tax Officer, Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Sukhsagar Syal, A/R Revenue by : Shri Bhangepatil Pushkaraj Ramesh, Sr. D/R सुनवाई की तारीख/Date of Hearing : 03/04/2025 घोषणा की तारीख /Date of Pronouncement: 04/04/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dt. 01/03/2024, by NFAC, Delhi [hereinafter ‘the CIT(A)’], pertaining to AY 2017-18. 2. The grievance of the assessee reads as under:- “1. The appellant prays your kind honor to condone the delay from our part and admit the appeal. 2. On the facts and in the circumstances of the case and in law, the learned commissioner of income tax (appeals) income tax department has erred in confirming the unsecured loan taken by the appellant amounting to Rs 12,50,000/- 3. On the facts and in the circumstances of the case and in law, the learned commissioner of income tax (appeals) income tax department has erred in confirming the unsecured loan taken by the appellant amounting to Rs 15,91,200/-.” 3. The appeal is time barred by limitation by 129 days. The cause for the delay was the medical emergency because of which the assessee I.T.A. No. 4600/Mum/2024 2 could not look into the income-tax matters. After considering the facts causing the delay supported by an affidavit, the delay is condoned. 4. Briefly stated the facts of the case are that the assessee electronically filed its return of income on 17/11/2018 declaring total income of Rs. 15,71,520/-. 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 there was an increase in the unsecured loans from Rs. 1,01,93,703/- to Rs.1,31,85,927/-. The AO found that the assessee has taken loan of Rs.6,00,000/- from Radhika Infrastructure and Rs.6,50,000/- from Synergy Allied Industries. The assessee was asked to justify the unsecured loans from the aforesaid parties and on receiving no plausible reply, Rs.12,50,000/- was added as unexplained credits. 5. The assessee carried the matter before the ld. CIT(A) but without any success. 6. Before us, the ld. Counsel for the assessee stated that the assessee could furnish only part details before the ld. CIT(A) and the managing partner, because of the medical emergency relating to his mother, could not attend the proceedings and submit all the details. However, the ld. Counsel furnished the complete details before us with an application for admission of additional evidence. 6.1. Considering the facts of the case, the additional evidences are admitted. 7. Considering the nature of evidences, we deem it fit to restore the issue to the file of the AO. The assessee is directed to avail this second opportunity and furnish all the related details/documents to the I.T.A. No. 4600/Mum/2024 3 satisfaction of the AO and the AO is directed to decide the issue afresh after affording a reasonable and adequate opportunity of being heard to the assessee. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the Court on 4th April, 2025 at Mumbai. Sd/- Sd/- (ANIKESH BANERJEE) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 04/04/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "