Nandkshore Telefilms & Media Private Limited Vs DCIT (ITAT Mumbai)
The Income Tax Appellate Tribunal, Mumbai allowed the appeal filed by the assessee against the order of the National Faceless Appeal Centre confirming additions made under sections 68 and 69C of the Income Tax Act, 1961 for Assessment Year 2013–14.
The assessee had e-filed its return declaring a loss of ₹10,25,982, which was initially processed under section 143(1). Subsequently, the assessment was reopened by issuing notice under section 148 after recording reasons. The assessee treated the earlier return as filed in response to the notice and objected to the reopening, which objections were rejected. During reassessment, statutory notices under sections 143(2) and 142(1) were issued, and the assessee furnished details as called for.
The Assessing Officer observed that the assessee had received unsecured loans aggregating to ₹50 lakh from five entities during the year. According to the Assessing Officer, these entities were bogus and engaged in providing accommodation entries. The assessee, in response, submitted loan confirmations, bank statements reflecting the transactions, income tax return acknowledgements, and balance sheets of the lenders. It was also explained that the loans were genuine business loans and had been repaid within the same financial year, with no outstanding balance as on 31 March 2013.
