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TMI Blog2025 (3) TMI 1380X X X X Extracts X X X X X X X X Extracts X X X X ..... 019 passed under s. 143(3) r.w.s 147 of the Act pertaining to assessment year 2012-13. 2. Grounds of appeal raised by the assessee read as under:- 1. "On the facts and circumstances of the case and in law, the notice issued u/s148 in this case is bad in law, without jurisdiction and barred by limitation and therefore the notice issued and the assessment order passed on the foundation of such notice are liable to be quashed and CIT (A) erred in not holding so. 2. On the facts and circumstances of the case and in law, the assessment order passed by the assessing officer is non-est as it does not have DIN on the body of the assessment order and CIT(A) erred in not holding so. 3. On the facts and circumstances of the case and in law, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the assessee has also questioned the propriety of assessment order in the absence of any reference to DIN on the body of the assessment order. 4. In the light of the judgement of Hon'ble Apex Court rendered in the case of National Thermal Power Co.Ltd. vs CIT [1998] 229 ITR 383 (SC) and CIT vs Sinhgad Technical Education Society (2017) 84 taxmann.com 290 (SC), the additional grounds raised by the assessee stand admitted owing to the fact that such issues being legal in nature are capable of being raised before the Tribunal for the first time. 5. As per the main grounds, the assessee has challenged the jurisdiction assumed under s. 147 on the ground that pre-requisites for issuance of notice under s. 148 are not fulfilled in the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Wing based on search operation conducted on Praveen Aggarwal Group of cases on 13.09.2012. As per the information received, Praveen Aggarwal Group was statedly found to be engaged in providing accommodation entries through shell companies managed and controlled by them. As per material seized by the Investigation Wing during search operations, names of several persons and companies were figured in the list of beneficiaries. The assessee company was also found to be in the list of beneficiaries. 8.1. Based on such information obtained from Investigation Wing, the case of the assessee was re-opened under s. 147 of the Act by issuance of notice under s. 148(1) of the Act. 8.2. Having invoked the re-assessment proceedings, the AO made enquiri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see that as per the Audited Financial Statement, the lender had net worth of more than INR 100 crore on 31.02.2012. The gross receipts/turnover as per the Profit & Loss Account was also more than INR 97 crore and that taxable returned income stood at INR 18,70,970/-. For the purpose of s. 68 of the Act, what is relevant is the source of the credit in the books of the assessee. The lender can have many sources for giving loans viz loans taken by them, accumulated funds, accumulated income and so on. Thus, the remarks of the AO that funds were transferred by the creditors to the assessee immediately after it was received by the creditors is no ground for drawing adverse inference and making additions under s. 68 of the Act. If such remarks ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s large number of judgements which fortifies such view. Notwithstanding the aforesaid position, in the instant case even the 'source of source' has been explained by the creditor by furnishing direct reply to the AO. The Revenue has proceeded against the assessee by entertaining the doubts alone and ignored the vital fact that the loan received was subsequently repaid as pointed out before both the authorities below. The assessee thus contends that it does not stand to benefit in any manner by taking the so-called accommodation entries which stood repaid. 8.5. The assessee also contends that addition of INR 6,90,000/- under s. 69C is also without any cogent documentary evidences. The assessee finally contends that the information and mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to receipt of share application money, share capital, share premium etc. and does not extend to loan transactions. The legal propositions are derived from the judgement rendered in the case of Mod. Creations Pvt.Ltd. (supra); CIT vs Shiv Dhooti Pearls & Investments Ltd.(supra) and CIT vs Gagandeep Infrastructure P.Ltd. 80 taxmann.com 272 (Bom.). 9.2. It is trite that additions under s. 68 cannot be made merely on the basis of some perception of culpability towards receipt of loan. The money in the instant case has been received from a company whose financial standing has been demonstrated to be fairly good. The defining feature in the instant case is repayment of such loan in the subsequent years which distinguishes the facts of this c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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