Mansukhlal Meghji Dodhia Vs DCIT (ITAT Mumbai)
In Mansukhlal Meghji Dodhia (AYs 2012-13 to 2016-17), additions were made u/s 69D for alleged hundi cash loans and u/s 68 for unsecured loan from M/s Vinam Finance Pvt. Ltd. based on seized papers, investigation reports and third-party statements. The ITAT held that for unabated assessment years, additions under s.153A cannot survive in absence of year-specific incriminating material, relying on the Supreme Court ruling in Abhisar Buildwell. The seized documents were treated as loose papers/promissory notes without corroboration of actual cash movement, and additions based solely on retracted statements and general modus operandi were held unsustainable.
The Tribunal further held that the assessee had discharged the primary onus u/s 68 by furnishing confirmations, PAN, bank statements and repayment details; mere allegation that the lender was a shell entity was insufficient without evidence of cash trail. Consequently, additions u/s 68 and 69D for all years were deleted and appeals allowed, rendering stay petitions infructuous.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These five appeals filed by the assessee for A.Ys. 2012-13 to 2016-17 are directed against common order passed by the Ld. Commissioner of Income Tax (Appeals), Pune-11[hereinafter referred to as ―CIT(A)”], dated 30.01.2025, arising out of assessment orders passed by the DCIT, Central Circle-3, Thane [hereinafter referred to as ―Assessing Officer”] on 30.09.2021. Along with these appeals, five stay applications bearing S.A. Nos. 79 to 83/Mum/2025 seeking stay of recovery of outstanding demand were also heard together, since the issues involved are common and arise out of the same search action. Therefore, for the sake of convenience and to avoid repetition of facts, all the appeals and stay applications are being disposed of by this consolidated order.
