Yashika Jewels Private Limited Vs ITO (ITAT Surat)
ITAT Surat held that addition on account of cash credit in current year untenable since loan is received back in subsequent year and the same is accepted by the department. Accordingly, addition deleted.
Facts- During the search action, it was discovered that Rajesh Lifespace Group has taken on-money on sale of flats. On money received in cash was brought back to their book in the form of loan or advances from various concerned. On the basis of such information, the Assessing Officer recorded reasons for escapement of income of Rs. 15.00 lacs for AY 2012-13. The case was accordingly reopened u/s. 147 of the Act. AO held that Rajesh Patel is the main person who was controlling all the affairs of Rajesh Lifespace Group and in his statement he has confirmed about accommodation entry from assessee. On the basis of such statement of Rajesh Patel, AO made addition of Rs. 15.00 lacs in the income of assessee while passing assessment order on 28/11/2019 passed u/s. 143(3) r.w.s. 147 of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Once the loan is repaid/received, no addition can be made as has been held by the Hon’ble Jurisdictional High Court in CIT Vs. Ayachi Chandrashekhar Narsangji 42 taxmann.com 251 (Guj) and in PCIT Vs Ambe Tradecorp (P) Ltd. 145 taxmann.com 27 (Guj).
