Mahesh Narayan Joglekar Vs DCIT (ITAT Mumbai)
Conclusion: Additions made under section 69A against assessee for Assessment Years (AYs) 2011-12 to 2018-19 was deleted as proceedings initiated on the basis of seized documents which did not mention assessee’s name were unsustainable.
Held: Search was conducted on 6 October 2017 at the premises of Evergreen Enterprises and its associates. Revenue alleged that Joglekar had advanced unaccounted cash loans of ₹30 lakh through Evergreen Enterprises and earned interest thereon. Based on this information, AO reopened AY 2011-12 and further made additions for AYs 2012-13 to 2018-19 under section 69A read with section 153A. It was held that Tribunal noted glaring infirmities in the reasons recorded for reopening AY 2011-12. The alleged cash loan of ₹30 lakh was dated 20 January 2010, clearly falling in AY 2010-11. Moreover, Evergreen Enterprises itself was incorporated only in April 2012, making the Revenue’s premise factually untenable. Approval u/s 151 was mechanical, based on consolidated list, without application of mind. Seized documents from Evergreen Enterprises mentioned “S.M. Joglekar,” not assessee (Mahesh N. Joglekar). No corroboration that both were same. Since seized documents did not pertain to assessee, additions based on them unsustainable. No independent incriminating material found in assessee’s own search. Accordingly, all additions made towards alleged cash loans and estimated interest income across AYs 2012-13 to 2018-19 were deleted.
